The IPO market spiked at the end of the year, but not all of the deals were successful. See which of the 2009 IPOs have the worst returns on the year -- and what they can teach us about the IPOs of 2010.
Chemspec International Another Chinese company, Chemspec International ( CPC), ranks as the second-least successful deal by stock returns in 2009. The country's largest producer of fluorinated specialty chemicals -- used in the manufacture of thin film transistor liquid crystal displays, and other electronics products -- Chemspec priced its IPO of 8 million American Depository Shares at $9 each. Each ADS represents 60 ordinary shares of the company. Since it began trading on June 24, the stock has tumbled 33.8% and closed on Dec. 8 at $5.96. "Growing competition, soft end markets, material accounting weakness and obnoxious related-party transactions are just a few of the reasons we'd cite in urging prospective investors to steer clear of this offering," Morningstar wrote in a note prior to the offering. In 2008 Chemspec reported sales of $138 million. While the company has some lofty goals -- such as doubling its total nameplate capacity -- many experts think management is being too ambitious.