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

This week will see the market debut of a Chinese e-commerce stock that isn't Alibaba, plus a new health-care issue and an oil and gas company active in the petroleum-rich Permian Basin.

May 18, 2014 at 12:00PM

Similar to last week, the coming days will see the debut of seven new stocks on the bourse. Dissimilar to last week, at least one will be a monster. The flotation of China-based e-tailer JD.com stands to take in a gross of nearly $1.7 billion if its American Depositary Shares sell at the upper end of their anticipated price range, while oil and gas concern Parsley Energy could reap as much as $790 million from its listing. So it looks like plenty of money will be floating around in the IPO space between now and the weekend.

We'll get to our selections in a moment, but first we need to issue our standard warning: IPO investing carries above-average risk, as initial stock prices can be far from the value the market eventually puts on the company's shares. This provides great upside potential, but it also carries the risk of losing the bulk of an investment.

OK, now onto the good stuff -- our selections for the week:

21st Century Oncology Holdings
Health care has been a hot sector in the IPO world recently, with the sector the clear No. 1 in terms of total IPOs so far this year. As its name implies, 21st Century Oncology Holdings' specialty is cancer treatment, and according to the company it runs the biggest integrated network of treatment centers and affiliated physicians in the country. All told, those doctors provide service to patients at around 376 locations. The company has posted losses in its recent history, although revenue is rising at an encouraging clip.

Slightly more than 13.3 million shares of 21st Century Oncology Holdings (ticker symbol ICC) will make their way to the New York Stock Exchange on Wednesday, priced at $14 to $16 per share. The lead underwriters of the issue are Morgan Stanley (NYSE:MS), JPMorgan Chase (NYSE:JPM) unit J.P. Morgan, and Wells Fargo (NYSE:WFC) Securities.

Alibaba is the upcoming Chinese e-commerce IPO that hogs all the headlines, but its competitor JD.com's listing is also a big deal, tipping the scales at a weighty $1.7 billion or so. JD.com is a business-to-consumer website facilitating the sale of thousands of products. It says it controls over 46% of the direct sales market in China, which given the immensity of that market is no small feat. As is common for energetic young online businesses, the firm has grown its top line at a furious rate but posted consistent net losses.

JD.com's IPO is slated to take place on Thursday, with nearly 93.7 million American depositary shares coming to the Nasdaq under the ticker symbol JD. The ADSes are priced at $16 to $18 apiece, and the underwriting syndicate is led by Bank of America Merrill Lynch and UBS (NYSE:UBS) Investment Bank.

Parsley Energy
One of the top energy plays in the U.S., the Permian Basin in Texas and New Mexico, is where this petroleum exploration and production company has planted its stake. Parsley Energy launched its operations in mid-2008, and these days it has operator rights to 98 wells spread across the area. It owns or leases over 111,600 net acres, and its net average daily production figure for this past April came in at 12,852 barrels of oil equivalent. Like health care, energy has been a popular sector for IPOs so far in 2014.

Thursday is when Parsley Energy will make its market debut Friday on the NYSE. 43.9 million shares will be sold for $15 to $18 per share, and the stock's ticker symbol will be PE. Credit Suisse, Goldman Sachs (NYSE:GS), J.P. Morgan, and Wells Fargo Securities are the issue's lead underwriters.

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Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Bank of America, Goldman Sachs, and Wells Fargo; owns shares of Bank of America, JPMorgan Chase, and Wells Fargo; and has options on 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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