Editor's note: With this column, we introduce a new feature by Ben Holmes, author of the popular This Week in IPOs and Upcoming Lockup Expirations columns on TSC. Ben has mined his database to present a table of the issues whose shares are emerging from their quiet period, and therefore are available for coverage by Wall Street analysts for the first time. Whether you're using this information to plan a trading strategy, or just as a heads-up for upcoming volatility, we hope it's useful. As always, let us know what you think.
I had a fantastic day yesterday. Here at
, we introduced a new weekly column on
upcoming IPO lockup expirations. I'm happy to say that the response from
readers was awesome! During the course of the day I received more than 120 emails about the article, one of them from
James J. Cramer
IPOs: Join the discussion on
I'll be honest, I love this stuff. Good feedback is like rocket fuel for me.
Well, today is a new day and I'm not one to rest on my laurels, so here's another one. Today we're rolling out another new weekly called "The Quiet Period," which will flag upcoming quiet-period expirations. This feature will list those IPOs whose quiet periods have ended in the past five days -- and those that will end in the next 10 days.
Because you will be hearing the term quiet period in many of my articles, let's nail down a clear definition before we go any further on the subject.
Quiet Period: For a period of 25 days following the issuance of an IPO no underwriter, market maker or member of the company's management can make any commentary 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. (By the way, my colleague
just penned a fascinating in-depth
discussion of this topic.)
This table lists recent IPOs that are coming out of their quiet period 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.
The way I see it, the reason many of you come here day after day to read
is to pick up what I call "actionable ideas," ideas you can put to work to make money. That's what a tool like this is designed to do -- to help you make money. You keep reading 'em, and I'll keep building 'em.
As always, your comments are
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. Ben's The Coming Week in IPOs column appears Sundays, 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