This Day On The Street
Continue to site
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

Quick Take: Industrial IPOs to Avoid

NEW YORK ( TheStreet) -- Initial public offerings have been hot and cold this year, but Francis Gaskins, research director for, told TheStreet's Debra Borchardt what he expects from two upcoming public debuts.

The first company is Athlon Energy, in the drillling and exploration sector. The planned IPO is for an offering size of $300 million, with shares priced between $18 and $20 and is expected to trade under the ticker symbol "ATHL."

Gaskins said that he wants to avoid this one, with overvaluation his main concern. A similar company that recently went public was Jones Energy (JONE), which priced at the low end of its range and proceeded to trade lower once it was open to the public.

However, the problem is that Athlon is double the price of Jones, making Gaskins very leery going into the IPO. Adding to it is the 1.9 times net present value at which the company is valued, which is quite high.

Ardmore Shipping, which plans to trade under the ticker symbol "ASC," currently has shares priced between $15 to $17, with an expected offering size of $160 million. The company plans to use the proceeds for expansion.

Gaskins' problem is that Ardmore Shipping isn't profitable with eight ships, so how is expanding to 24 going to help? He added that while this international oil shipping play might pan out, there are plenty of other companies that are more mature, have better contracts, and more money. He is avoiding both IPOs.

-- Written by Bret Kenwell in Petoskey, Mich.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs