The 25 Hottest IPOs of 2010

The potential for any IPO to be the next Google leaves many investors hungry to get in on their action. 2010 helped sate that hunger with 152 IPOs (excluding blank-check companies).

Investing in IPOs can be hugely profitable, but consider yourself warned -- most IPOs don't go straight to the moon. This year, the market provided a particularly strong tailwind for IPOs. According to IPOScoop.com, the average IPO this year was up 24.5%. Numbers like that keep many investors interested in newly public stocks.

At the Motley Fool, we're cautious about investing in IPOs, as you'll discover in these articles:

So why do we warn investors to be wary? Among many other reasons, insiders often use an IPO as an exit strategy. Thus, they have an incentive to show the best numbers possible; they'll often use accounting tricks to temporarily raise their earnings. After the expiration of the insiders' lock-up period, shares will often sink back to lower levels. That happened recently with Tesla (Nasdaq: TSLA  ) , which dropped more than 10% on the day its insider lock-up ended.

If you do decide to invest in IPOs, choose carefully. Many will be duds, but others could skyrocket. Here are the hottest 25 IPOs of 2010:

Rank

Company

Offer Date

Offer Price

End-of-Year Price

Return

1 Molycorp (NYSE: MCP  ) 7/29/2010 $14.00 $49.90 256.43%
2 HiSoft Technology International (Nasdaq: HSFT  ) 6/30/2010 $10.00 $30.20 202.00%
3 RealPage (NYSE: RP  ) 8/12/2010 $11.00 $30.93 181.18%
4 Youku.com (NYSE: YOKU  ) 12/8/2010 $12.80 $35.01 173.52%
5 BroadSoft (Nasdaq: BSFT  ) 6/16/2010 $9.00 $23.88 165.33%
6 Qlik Technologies (Nasdaq: QLIK  ) 7/16/2010 $10.00 $25.87 158.70%
7 Camelot Information Systems (NYSE: CIS  ) 7/21/2010 $11.00 $23.92 117.45%
8 Vera Bradley (NYSE: VRA  ) 10/21/2010 $16.00 $33.00 106.25%
9 Oasis Petroleum (NYSE: OAS  ) 6/17/2010 $14.00 $27.12 93.71%
10 MakeMyTrip (Nasdaq: MMYT  ) 8/12/2010 $14.00 $27.03 93.07%
11 Envestnet (NYSE: ENV  ) 7/29/2010 $9.00 $17.06 89.56%
12 Fresh Market (NYSE: TFM  ) 11/5/2010 $22.00 $41.20 87.27%
13 Motricity (Nasdaq: MOTR  ) 6/18/2010 $10.00 $18.57 85.70%
14 JinkoSolar (NYSE: JKS  ) 5/14/2010 $11.00 $20.12 82.91%
15 Noranda Aluminum Holding (NYSE: NOR  ) 5/14/2010 $8.00 $14.60 82.50%
16 China Kanghui (NYSE: KH  ) 8/11/2010 $10.25 $18.51 80.59%
17 China Lodging Group (Nasdaq: HTHT  ) 3/26/2010 $12.25 $21.78 77.80%
18 SemiLEDs (Nasdaq: LEDS  ) 12/9/2010 $17.00 $29.05 70.88%
19 E-Commerce China Dangdang (NYSE: DANG  ) 12/8/2010 $16.00 $27.07 69.19%
20 Higher One (NYSE: ONE  ) 6/17/2010 $12.00 $20.23 68.58%
21 SouFun (NYSE: SFUN  ) 9/17/2010 $42.50 $71.52 68.28%
22 Inphi (Nasdaq: IPHI  ) 11/11/2010 $12.00 $20.09 67.42%
23 Sensata Technologies (NYSE: ST  ) 3/11/2010 $18.00 $30.11 67.28%
24 Amyris (Nasdaq: AMRS  ) 9/28/2010 $16.00 $26.68 66.75%
25 Financial Engines (Nasdaq: FNGN  ) 3/16/2010 $12.00 $19.83 65.25%

Source: IPOScoop.com.

These stocks are a good place to start your research if you're interested in trying to spot the next hot IPO, but they're not formal recommendations. Remember, these are companies with short track records, new to financial transparency, so do your own due diligence.

If you're looking for a stock in a hot new industry, click here to access the Fool's free special report, "The Only Stock You Need to Profit From the NEW Technology Revolution."

Dan Dzombak can be found on his Twitter account: @DanDzombak. He does not own shares in any of the companies mentioned in this article. Qlik Technologies and The Fresh Market are Motley Fool Rule Breakers recommendations. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (3) | Recommend This Article (12)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 04, 2011, at 4:39 PM, cdantoin wrote:

    Molycorp's HREE counterpart: Alaska's Bokan Mt. former operating mine, UCORE

    Company: UCORE

    Vancouver Exchange: UCU.V

    NYSE: UURAF.PK

    Industrial College of the Armed Forses, http://www.ndu.edu/icaf/programs/academic/industry/reports/2...

    State of Alaska House of Represenatives: House Resolution #16

    http://treo.typepad.com/raremetalblog/2010/04/news-state-of-...

    DOE_CriticalMaterialsStrategy

    http://www.energy.gov/news/documents/criticalmaterialsstrate...

    News:H.R. 6160, the Rare Earths and Critical Materials Revitalization Act of 2010 (“the Act”), by the U.S. House of Representatives: “While these Acts together promise to give U.S.-based rare earth producers a remarkable edge in the race to replace specialty metals now dominated by China, very few domestic projects have the qualifications of Bokan as a strategic military and technological asset,” said Jack Lifton, a leading REE expert and a party to the initial drafting of proposed RESTART legislation. “As the largest historically documented Heavy rare earth deposit in the U.S., Bokan is a counterpoint to Molycorp’s primarily Light rare earth deposit at Mountain Pass in California. Together, these two deposits, located in relative proximity to each other and on U.S. soil, have the potential of liberating the U.S. from non domestic rare earth dependencies in the near term.”

    Ucore Investor Presentation Aug 2010.ppt

    http://treo.typepad.com/UCU%20Inst%20Presentation%20%20Aug%2...

    Chris DoD employee

  • Report this Comment On January 05, 2011, at 11:50 AM, cigarsnscotch wrote:

    Found a typo: Financial Engines ticker is FNGN and they are listed on the NASDAQ

  • Report this Comment On January 06, 2011, at 9:50 AM, TMFDanDzombak wrote:

    Thanks, it has been corrected

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