Focus on These Two Like a Laser Beam - TheStreet

Boy, is it nice outside! I say this only because it's the truth and because I would love nothing more than to be out there groovin' in the sweet, sweet Colorado outdoors. But, there's work to be done...

As you probably know, I don't have much of anything nice to say about the effects of initial research coverage on IPOs exiting their quiet periods. There was a time when the stocks received a boost in price when the first buy recommendations were released. Nowadays, they just bleed and head for the floor. So much for the value of analysis. (For a primer on Quiet Periods, see my May 4


There are a couple of names in the list this week that are worthy of a slot on your stock-watch screen.

New Focus


, which had a fantastic first-day performance, continues to work higher. The story on this stock is good and the sector is hot. Whatever the analysts say, good or bad, this is a name that has made a lot of investors very happy lately.

iBeam Broadcasting


is another issue that has worked higher after its IPO, but not in a straight-up fashion. The stock closed up 4 points at 14 on its first day, then slid quickly back to its $10 issue price. After a week or so at that level, it has begun to climb back and closed Friday at 15 1/2. Not a moon shot, but gains are gains.

Whatever you do, remember the track record for recently recommended IPOs is terrible. Buy these stocks for the right reason -- because they're showing strength -- not because some overworked analyst tells you to.

And now my work is done...

Ben Holmes is the founder of , a Boulder, Colo.-based research boutique (now a wholly-owned subsidiary of specializing in the analysis of equity syndicate offerings. This column is not meant as investment advice; it is instead meant to provide insight into the methods of new and secondary offerings. Neither Holmes nor his firm has entered indications of interest in any of the companies discussed in this column. Holmes' This Week in IPOs column appears Sundays, This Week's Secondaries appears Tuesdays, Upcoming Lockup Expirations appears Wednesdays and The Quiet Period appears on Fridays. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Holmes appreciates your feedback at