Two-thirds of 2011's IPOs are below their initial offering price, leaving many investors who bet on the year's newest players worse off than most.
Still, more than 200 initial public offering hopefuls sit in the pipeline, waiting to go make their debut. That's more than at any other time in the past decade, and analysts believe the numbers are unlikely to drop anytime soon.
While many are drooling over the prospect of investing in IPO hopefuls like Facebook, Groupon, or online gaming site Zynga, investing in any IPO is an extremely risky business. Given the market's current volatility and mixed sentiment, many investors simply aren't willing to take the chance. Knowing this, IPOs have been quick to delay their public offering and wait for a more opportune debut.
As a result, just four IPOs began trading in August, compared to 13 in August 2010, and zero this September (so far). Yet companies continue to file for public offerings, remaining hopeful the market will turn bullish in the near future.
"The fate of these companies in waiting is critical because many need new capital to grow, expand and hire new employees. Whether investors will digest such a huge slate of companies will be a big test of the resilience of the stock market," reports USA TODAY.
Do you think delayed IPOs such as Facebook, Zynga, even Toys R Us, to name a few, will make moves anytime soon?
If you're interested in IPO investing, the following list may offer an interesting starting point for your own analysis.
To create this list, we started with the complete list of IPOs over the last year. We collected data on insider transactions, and identified the list of IPO stocks that have seen significant insider buying during the current quarter.
Insider executives think there's more than just IPO hype to these names. They expect more upside from these names -- do you?
(Click here to access free, interactive tools to analyze these ideas.)
1. Aegerion Pharmaceuticals (Nasdaq: AEGR ) : Engages in the development and commercialization of novel therapeutics to treat severe lipid disorders. IPO occurred on 22-Oct-2010. Over the last six months, insiders were net buyers of 695,149 shares, which represents about 6.17% of the company's 11.26M share float.
2. Aeroflex Holding (NYSE: ARX ) : Designs, engineers, manufactures, and sells microelectronics, and test solution and measurement equipment in the United States, Europe, the Middle East, Asia, and Australia. IPO occurred on 19-Nov-2010. Over the last six months, insiders were net buyers of 23,795 shares, which represents about 0.07% of the company's 32.49M share float.
3. Campus Crest Communities (NYSE: CCG ) : Focuses on building, owning, and managing student housing properties in the United States. IPO occurred on 14-Oct-2010. Over the last six months, insiders were net buyers of 10,900 shares, which represents about 0.04% of the company's 30.58M share float.
4. Complete Genomics (Nasdaq: GNOM ) : Develops and commercializes a DNA sequencing platform for human genome sequencing and analysis. IPO occurred on 11-Nov-2010. Over the last six months, insiders were net buyers of 1,650,000 shares, which represents about 16.14% of the company's 10.22M share float.
5. The KEYW Holding (Nasdaq: KEYW ) : Provides mission-critical cybersecurity and cyber superiority solutions to defense, intelligence, and national security agencies in the United States. IPO occurred on 01-Oct-2010. Over the last six months, insiders were net buyers of 63,000 shares, which represents about 0.31% of the company's 20.62M share float.
6. Primo Water (Nasdaq: PRMW ) : Provides multi-gallon purified bottled water, self-serve filtered drinking water, and water dispensers in the United States and Canada. IPO occurred on 05-Nov-2010. Over the last six months, insiders were net buyers of 190,000 shares, which represents about 0.98% of the company's 19.32M share float.
7. QR Energy (NYSE: QRE ) : Engages in the acquisition, production, and development of onshore crude oil and natural gas properties in the United States. IPO occurred on 17-Dec-2010. Over the last six months, insiders were net buyers of 63,300 shares, which represents about 0.37% of the company's 16.96M share float.
8. Tower International (Nasdaq: TOWR ) : Operates as an integrated manufacturer of engineered structural metal components and assemblies to automotive original equipment manufacturers (OEMs) worldwide. IPO occurred on 15-Oct-2010. Over the last six months, insiders were net buyers of 74,000 shares, which represents about 1.13% of the company's 6.54M share float.
9. Zogenix (Nasdaq: ZGNX ) : Engages in the development and commercialization of products for the treatment of central nervous system disorders and pain. IPO occurred on 23-Nov-2010. Over the last six months, insiders were net buyers of 7,155,620 shares, which represents about 89.89% of the company's 7.96M share float.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Becca Lipman and Eben Esterhuizen does not own any of the shares mentioned above. Insider data from Yahoo! Finance.