NEW YORK (
Cloud Peak Energy
7 Days Group
are all some of the talked about
's to hit the tape this fall. The onslaught of IPO's is no coincidence. Scott Sweet Senior Managing Partner of IPO Boutique says that historically companies in good markets try to get out prior to the start of the next calendar year saying, "They like to be public on January first."
asked Sweet for his opinion on the IPO's coming to market.
7 Days Group:
7 Days Group is like a "Days Inn" of China. Travel is increasing dramatically in China and this is a play on the trend. The only downside is that the interest at this point is mostly Asian, not as much U.S. When I see a disproportionate amount of demand - I question whether the orders are bona fide because "the books are lumpy. Since the
debacle, only one Chinese IPO has worked. The Shanda Games deal left a bad taste in everyone's mouth.
Global Defense Technology:
The interest is very light. I think people believe that Obama will cut defense spending and Pelosi will back it. The company provides a good service, but it's very dependent on the Department of Defense.
It's an interesting company and it gets compared to K-12. Compared to K12, it may look pricey. But I think people are looking at the business plan more closely and that the momentum is changing. It seems as if the company is being seen as less vulnerable to spending cuts and may benefit from longer contracts.
Further out, Sweet likes
, a foreign exchange trading company for its unique trading platform. He likes
since its one of
's jewels and
, which is one of the biggest online retailers for computer equipment like monitors, mice and hard drives. Dates have yet to be announced for these deals.