This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Young, Exciting IPOs (Not Named Facebook)

This column originally appeared on Real Money at 6:30 a.m. EDT on June 5.

NEW YORK (Real Money) -- I mentioned inverse exchange-traded funds earlier this week as a viable route for long investors to capitalize on recent market downside. While I'm trading some of these instruments (always prepared to exit quickly to keep gains, particularly if the market turns higher), I continue to run my screens for stocks that could be setting up for price runs in the next market uptrend.

I regularly run scans for recent initial offerings. By recent, I often mean stocks that went public in the past decade or so.

Despite recent widespread schadenfreude over Facebook's (FB) IPO debacle, companies that went public in the past 10 years are often among the market's best performers. As an example, look at a small-cap I've written about before, Liquidity Services (LQDT), which is trading well above its 50-day average, below its May 10 high of $66.57. Liquidity Services went public in 2006, putting it right in that potential winning zone for new companies.

However, I often narrow some of my scans down even more, looking at companies that made their trading debuts in the past two or three years. Earlier this week, I wrote about Nationstar Mortgage Holdings (NSM), which went public in March and has advanced 43% since then. This is an excellent example of a young small-cap that could be poised to make further upside moves in the next confirmed market uptrend.

Another name that I've been tracking for several weeks is Seattle-based regional bank HomeStreet (HMST). The company was on the brink of being shut down by regulators a few years ago due to bad loans. However, a new management team came in and decided to recapitalize by selling off some operations and going public.

It made its Nasdaq debut in February at $44, and then underwent a 2-for-1 split March 9. The stock was trading at around $32.55 Tuesday, a split-adjusted gain of about 48% since its IPO. It was getting support right at its 10-week average, showing that institutional investors are, for the most part, holding shares, rather than bailing out.

Regional banks are often sold along with the larger financials, which ignores the solid fundamental potential in many of these smaller banks. It's risky to make new buys in a market downturn, but moving average support is a good indication of continued strength that could bode well when the market turns higher again.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs