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

It's the dot-com years all over again! Well, probably not, but the coming days will see a host of new tech issues coming to market.

Mar 16, 2014 at 2:00PM

Now we're on a roll. This week is going to see a raft of new issues hitting the stock market -- 11 in total. Of those issues, nearly half are a classic type of IPO -- tech stocks. Could we be witnessing a 2.0 version of the late 1990s/early 2000s dot-com IPO gold rush? It's too early to tell, but with these guys coming to market we can't rule it out as a possibility. So out of the four stocks we're featuring this week, exactly half are tech issues.

Before we begin, however, we have to warn 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.

Now, with that caution out of the way, let's look at our selections for the week.

Paylocity Holding
Like many young tech companies these days, this firm quite literally lives in the cloud. That's where its software resides, specifically human capital management solutions for mid-sized firms. As of last June, Paylocity Holding served roughly 6,850 clients in the United States. As to be expected of a young tech company, it's seen robust growth, nearly doubling its top line (to $77 million) from fiscal 2011 to 2013. Somewhat atypically for the sector, it's also managed to turn a profit in its past two fiscal years.

A total of 6.67 million shares of Paylocity Holding are being brought to market by lead underwriters Bank of America Merrill Lynch, Deutsche Bank Securities, and William Blair for $14 to $16 per share. The stock is scheduled to make its debut on Wednesday, listing on the Nasdaq under the ticker symbol PCTY.

Traveling out of the U.S. for the moment brings us to this Israel-based biopharma, which specializes on the development of products used to treat severe burns and other hard-to-treat injuries. It's already gotten marketing authorization from the European Medicines Agency for its burn care solution NexoBrid. The company hasn't yet posted any fiscal year revenues, but if the IPO is successful it'll pump much of the proceeds into sales and marketing efforts.

MediWound is expected to hit the market on Thursday, being led to it by lead underwriters Jefferies, a unit of Leucadia (NYSE:LUK), Credit Suisse, Bank of Montreal's (NYSE:BMO) BMO Capital Markets. An even 5 million shares will be sold in the offering for $14 to $16 apiece, and the company should trade under the ticker symbol MDWD on the Nasdaq.

A10 Networks
The tech sector is becoming infinitely more specialized. This company, which stands to reap the most from any of this week's IPOs, is a provider of technologies that it says optimize the networks of large organizations, and make them faster and more secure. Like Paylocity Holding, A10 Networks' revenue has swollen lately (rising from $91 million to $142 million from fiscal 2011 to 2013), but the bottom line has been solidly in the red over the past two years. The company's market looks juicy, though, and its potential clients should be willing to fork over money for the kinds of improvements it promises.

A total of 12.5 million shares of A10 Networks will be sold in the IPO, at a price of $13 to $15 per share. The lead underwriters are Bank of America Merrill Lynch, Morgan Stanley (NYSE:MS), JPMorgan Chase (NYSE:JPM) division J.P. Morgan, and Royal Bank of Canada's (NYSE:RY) RBC Capital Markets. The IPO should take place on Friday, with the stock trading on the New York Stock Exchange under the ticker symbol ATEN.

Amber Road
Neighboring our friend Paylocity Holding in the e-cloud is this company, which in its words is "a leading provider of cloud-based global trade management" for the logistics industry. Global trade is thriving these days, giving Amber Road a tremendous potential client base to feed from. Its taken advantage of the robust China market by purchasing a fellow global trade management solutions provider located in that country, EasyCargo, in September of last year. Meanwhile, Amber Road's revenue has been floating in the right direction -- up -- over the past few years, although profitability hasn't yet risen into the black. 

The firm is slated to make its market debut on Friday, trading on the NYSE under the ticker symbol AMBR. The lead underwriter is Stifel, and the issue will see just over 6.5 million shares sold at $10.50 to $12.50 per share.

Find explosive growth here
Every investor wants to get in on revolutionary ideas before they hit it big -- like buying PC maker Dell in the late 1980s, before the consumer computing boom, or purchasing stock in e-commerce pioneer Amazon.com in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hypergrowth markets. The real trick is to find a small-cap "pure play" and then watch as it grows in explosive fashion within its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 trillion industry. Click here to get the full story in this eye-opening report.


Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Leucadia National and owns shares of Amazon.com and JPMorgan Chase. 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.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information

Compare Brokers