NEW YORK (
skyrocketed 74% after going public last week. That jump effectively placed a $700 million valuation on a company that only had income of $5.6 million for the first six months ending June 30, 2010.
The stock has since started to pull back, and perhaps when investors get to the bottom of the bottle they'll question whether Soda Stream, who's EBITDA equaled only 10% of its net income for those six months is worth the high price.
Video: Four Profitable IPOs >>
The IPO calendar is chock full of even more companies scheduled to go public this week, some profitable and some money losers. Here's a breakdown on the offerings:
revenues have been climbing every year, with roughly 33% coming from Samsung and 12% from
It is a fabless provider of high-speed analog semiconductor products and many of its customers are based in Asia. IPO Desktop analyst Francis Gaskins acknowledges that the company faces competition from big names like
( NETL) and that technology is moving away from analog to digital.
But he notes that the stock's price-to-sales ratio of 3.8X is less than
(4.5) and only slightly higher than Broadcom (3.0).
"It looks like a safe bet at the IPO price of $9.50," Gaskins says.
is a fabless designer of mixed signal semiconductor chips. Many of their products are used in mobile handsets, MP3 players and a host of other consumer electronic devices.
The company delivered $149 million in sales over the last 12 months, and the price-to-earnings ratio on the stock is around 13X, a little higher than
(10), but lower than Broadcom (17).
This is a capital intensive business and the company hopes to raise $71 million in the offering to finance growth and develop products. "They have tremendous sales growth," says Gaskins. "That one should do quite well."
is a wealth management company in China with 300 relationship managers in 28 offices, and sales have increased 260% and income jumped 500% last year.
Gaskins notes that the industry is in an embryonic stage because 80% of China's high net worth individuals make their own decisions. However, Noah's providers are independent and not affiliated with banks, which they feel will win the clients trust.
The average transaction value per client went from half a million in 2009 to one million in 2010. Gaskins likes the numbers and thinks it will be a good IPO. The proceeds will be used to set up new offices and update the IT infrastructure.
Ikaria ( IKAR)
is a biotherapeutics company that offers a nitric oxide-based system that treats respiratory disease in infants. The company's sales grew 10% in 2010 from last year.
Gaskins notes that this company does carry some risks. The company posted a 55% decline in profits for the nine months ended September 2010, and some of its sales growth came in the form of price increases.
Also, a special dividend of $130 million was paid to existing stockholders ahead of the public offering, essentially bleeding the company of cash. Half of the proceeds will be used to repay debt.
Not So Attractive IPOs:
Richmond Honan Medical Properties
Richmond Honan Medical Properties
( MOB) owns equity interests in 29 medical office buildings in 10 states.
The real estate investment trust, or REIT, reported $38 million in sales last year. However, revenues actually decreased .5% for six months ending June 2010, while expenses increased 80% for the same period.
Gaskins doesn't like that the REIT is pricing itself at 1.6X its tangible book value, while similar companies are selling at 1.2X tangible book. He's also questioning some of the properties that Richmond Honan is acquiring from officers and directors, saying that they were not purchased with arm's-length negotiations.
( GNOM) offers outsourced genomic data for less than what it would cost its customers if they had to purchase DNA sequencing instruments themselves.
The company originally filed in July to raise $86 million, but then released terms in October for $78 million. The company has a backlog of sequencing orders for which it hasn't recognized revenue. It is similar to
, which recently went public, but has traded down since its offering.
By way of comparison, Pacific Biosciences has a backlog of $15 million, whereas Complete Genomics' backlog is only $9 million. Plus, the company has six issued U.S. and six internationally issued patents that will expire between 2014 and 2027.
( WAV) provides 4G wireless services to buildings. It originally filed to offer 8.25 million shares in May, but then postponed the deal.
While the company has booked $136 million in sales over the last 12 months, sales declined for the first six month of 2010 versus the first six months of 2009. The company also generated operating losses of $7 million for the same period. Gaskins also points out that with a negative price-to-tangible-book value of -3.3X, the balance sheet is highly leverage and will constrain growth.
--Written by Debra Borchardt in New York.
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