3 New Issues IPO Investors Need to Know About for This Week

The market takes a breather, but there are still a trio of upcoming issues to keep an eye on.

Feb 17, 2014 at 2:00PM

Perhaps it's the Presidents Day-abbreviated week, or maybe the financial world is taking a breather from the heavy pace of new stock issues so far this year. Whatever the reason, this week is going to be fairly quiet on the IPO front. But this restless market for new issues never truly sleeps, so between now and the weekend there's a new stock coming to the exchange, plus a pair of recent IPO filings backed by serious financial players.

Before we dive in, however, we have to issue a warning -- IPO investing carries above-average risk, because initial stock prices can be far from the value the market eventually puts on the company's shares. Of course, this situation provides immense upside potential ... though it also presents the chance of losing a big chunk of an investment.

So, on to the latest and greatest.

Sundance Energy Australia
From across the Pacific Ocean comes this oil and gas company, which concentrates on the exploration, development, and production of those two resources, with heavy emphasis on the former. Although Down Under is its home, Sundance sensibly concentrates its resources and efforts on American energy plays such as the massive Bakken formation across North Dakota and Montana, and Texas' Eagle Ford. As of last September, the company's production averaged around 3,855 barrels of oil equivalent per day, its gross acreage was just over 191,000, and its net acreage was slightly more than 62,500. Over the past three years its bottom line has fluctuated, at times dramatically, but in the first nine months of 2013 its revenues nearly doubled. Already listed in its home country, Sundance plans to float 7.75 million American depositary shares on the Nasdaq under the ticker symbol SNDE at $16.50 to $18.50 per ADS. The lead underwriters are Wells Fargo (NYSE:WFC) Securities, Canaccord Genuity, and UBS Investment Bank. The ADSes are slated to begin trading publicly on Friday.

PQ Holdings
Private-equity heavyweight Carlyle Group (NASDAQ:CG) is the owner of this specialty chemicals firm, having bought it for $1.5 billion in 2007 and now looking to exit its investment via an IPO. PQ Holdings has three business lines -- inorganic performance chemicals, catalysts, and glass materials -- and says it holds either the No. 1 or No. 2 position in 90% of its products. The company's business seems very steady, although that means sales that have largely been stagnant at the $1 billion level over the past few years, and thin or negative net margins. Carlyle has drafted an underwriting syndicate led by a trio of big guns, namely Bank of America (NYSE:BAC) Merrill Lynch, JPMorgan Chase (NYSE:JPM) unit J.P. Morgan, and Credit Suisse. The IPO will seek to raise up to $450 million, and the shares should trade under the symbol PQH, although a stock exchange has not yet been identified, nor has a flotation date been scheduled.

La Quinta Holdings
On the heels of its high-profile IPO of iconic hotelier Hilton Worldwide Holdings last December, financial-services powerhouse Blackstone Group (NYSE:BX) is looking to shed its stake in this budget hotel operator. It took the firm private in a 2006 deal to the tune of $3.4 billion. These days La Quinta is one of the biggest players on the modest end of the U.S. market, boasting more than 830 hotels around the country. Its revenues have sloped higher every year from 2010 to 2012, and those for the first nine months of 2013 are showing a pleasant 7% year-over-year gain. The bottom line, however, is choppy, and that Hilton IPO hasn't been a big winner (the shares were floated at $20 apiece and currently trade only $2 or so higher). The La Quinta issue aims to raise up to $100 million, although no potential ticker symbol, exchange, or IPO date has yet been specified. The lead underwriters of the issue are JPMorgan Chase and Morgan Stanley.

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Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Bank of America and Wells Fargo, and owns shares of Bank of America, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't 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.

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