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IPO Report Card: Ups and Downs of Internet IPOs

NEW YORK (TheStreet) -- Since the stock market hit a bottom in March 2009, numerous Internet-related companies have had initial public offerings, including nine detailed in this article that entered the public market between May 2009 and May 2012.

Based upon ValuEngine models and my proprietary analytics, it takes a certain period of time to provide enough data to give accurate analysis and profiles. In my judgment, it takes nine years of data to assume that all possible bullish or bearish events have been factored into the price movement of a stock. Obviously that is not possible in the IPO market since May 2009.

The nine Internet IPOs I am evaluating today have enough price and earnings history to at least make a prudent evaluation and prepare an IPO report card.

Let's start with the macro and then drill down to the micro:



The computer and technology sector is 20.8% overvalued with the Internet software industry 3.1% overvalued, the Internet content industry 20.9% overvalued, and the Internet services industry 21.6%. Stocks remain under a ValuEngine valuation warning with 69.2% of all stocks overvalued.

Reading the Table

OV / UN Valued - The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.

VE Rating - A "1-Engine" rating is a Strong Sell, a "2-Engine" rating is a Sell, a "3-Engine" rating is a Hold, a "4-Engine" rating is a Buy and a "5-Engine" rating is a Strong Buy.

Last 12-Month Return (%) - Stocks with a Red number declined by that percentage over the last twelve months. Stocks with a Black number increased by that percentage.

Forecast 1-Year Return - Stocks with a Red number are projected to decline by that percentage over the next twelve months. Stocks with a Black number in the Table are projected to move higher by that percentage over the next twelve months.

Value Level: is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual. Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.

Risky Level: is the price at which to enter a GTC Limit Order to sell on strength.

Stock quotes in this article: OPEN, GAME, P, RATE, RENN 

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