Quick Take: Questions on Housing-Related IPOs
NEW YORK ( TheStreet) -- Initial public offerings in the housing sector just keep coming, according to Francis Gaskins, research director for Equities.com and TheStreet's Debra Borchardt.
Take American Homes 4 Rent, a type of real estate investment trust that has had limited success in 2013. The company has filed for a $750 million offering size in the range of $16 to $18 per share and expects to trade under the ticker symbol, "AMH."
Gaskins said he's not really loving this one because of the poor performance of other stocks already in the sector. He added there appears to be a mistake in the company's SEC filing -- something he never likes to see -- with the capitalization being higher than the price-to-tangible-book value, which it should never be.
The second IPO is Control4 Corporation and again, Gaskins doesn't care for its prospects. The IPO has an offering size of $65 million, with shares in the $14.50 to $16.50 range and the company plans to trade under the ticker symbol, "CTRL."Control4 sells equipment for homeowners that allow them to control security systems, lighting, heating and other features remotely away from home. While top-line growth was recently as high as 20%, Gaskins said the company has not been able to reach profitability. Although the June quarter shows estimates for a $1.5 million gain, its pre-taxed income would give the company a PE ratio of 60. Gaskins concluded that one quarter does not represent consistency and that this is one to watch, but not buy. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV