It's been a few weeks since I've defined what this column is about; so here is a refresher:
For a period of 25 days following the issuance of an IPO no underwriter, market maker or member of the company's management can comment on the merits of the company's stock. This is known as the quiet period. The purpose of this restriction is to allow the newly issued stock to find its own price level based on true market demand.
As part of the underwriting service, it is customary for an underwriter to initiate research coverage on a newly issued stock just as soon as the quiet period ends. It is more likely than not that this initial research report will be positive. (For more, look at my colleague
in-depth discussion of this topic.)
This table lists recent IPOs that are coming out of their quiet periods and are therefore likely to be recommended by their respective underwriters. The aim here is to give readers a heads-up on potential trading candidates. Keep in mind that the underwriters are not required to initiate coverage, nor is there any promise that the initial recommendation will be positive, so remain wary.
Ben Holmes is the founder of ipoPros.com, a Boulder, Colo.-based research boutique (now a wholly-owned subsidiary of TheStreet.com) 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