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

Clinical-stage biopharma Achaogen, oil transporter Diamond S Shipping Group, and health care tech solutions provider Castlight Health will all hit the market over the coming days.

Mar 9, 2014 at 2:00PM

Marching more deeply into March, initial public offerings are keeping up the accelerated pace of recent times. Three notable new issues hoping to bring in over $50 million from their IPOs will make it to market this week. As with so many fresh flotations over the past year or so, one of the three is a pure-play biotech firm, while the second promises health care cost saving through its technology. The third is an oil and petroleum products transport firm; although that segment hasn't seen many new stocks coming to market of late, this firm is plugged directly into the energy sector, a stock market favorite at the moment.

We do have to caution, though, that IPO investing carries above-average risk. That's 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.

Moving on, let's take a look at this week's notable market debuts.

This clinical-stage biopharma's efforts are devoted to the development of state-of-the-art antibacterial substances to treat certain types of multi-drug resistant infections. It has high hopes for its pipeline drug, plazomicin, which it plans to bring to market via a new drug application to the Food and Drug Administration. Financially speaking, Achaogen was in the red in fiscal 2011 and 2012, and also reported a loss across the first nine months of last year. That trend might change, and dramatically so, if plazomicin comes to market before long and proves to be popular.

The company's stock is slated to start trading Wednesday on the Nasdaq under the ticker symbol AKAO. It is priced at $12 to $14 per share, and 5 million shares will be offered. The lead underwriters of the issue are Credit Suisse, and Cowen Group's (NASDAQ:COWN) Cowen and Company.

Diamond S Shipping Group
For investors looking for a somewhat alternative way to play the energy sector, this company might be worth keeping an eye on. As its name implies, Diamond S Shipping Group is a firm that concentrates on the seaborne transport of oil and other petroleum by-products. According to the company, it is "one of the largest owners and operators of modern medium range ... product tankers in the world." Its fleet comprises 33 of those big vessels, and partly with the proceeds of its IPO it plans to buy ten more. In its last fiscal year, the company's predecessor firms collectively brought in a net profit of $11 million on revenue of $176 million. 

Diamond S Shipping Group will hit the market on Wednesday, listing on the New York Stock Exchange under the ticker symbol DSG. 14 million shares will be for sale, and the price has been set at $14 to $16 per share. Bank of America (NYSE:BAC) Merrill Lynch and Leucadia's (NYSE:LUK) Jefferies are the lead underwriters of the offering.

Castlight Health
Do you prefer investing in health care, or in tech? With this company, no choice need be made. Castlight Health brings in the bulk of its revenue by offering subscriptions to what it describes as its "cloud-based software that enables enterprises to gain control over their rapidly escalating health costs." According to the firm's data, health care spending by American employers is expected to hit $620 billion this year, so there are plenty of costs to control. As to be expected for a young tech company, the firm is light on revenue and heavy on net losses at the moment.  But its products are compelling, and the timing is good for those offerings. 

Castlight Health is slated to debut on the market Friday, trading on the NYSE under the ticker symbol CSLT. 11.1 million shares of class B common stock are being sold at a range of $9 to $11 apiece. Investment banking war horses Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) are the lead underwriters.

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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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