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

Arista Networks will make its debut Friday, while MobileIron edges closer to a listing.

Jun 1, 2014 at 11:30AM

Investors could be forgiven for thinking that the IPO market has fallen into a ditch and can't get out. Last week saw a grand total of zero new issues, while in the coming five days only a single new stock, Arista Networks, is scheduled to hit the exchange.

Is the IPO market stuck? Probably not. After all, over the past few years the pre- and post-Memorial Day period has been a traditional time for IPO players to take a break. And this year is a good one for them to rest a bit; according to IPO specialist Renaissance Capital, thus far in 2014, 115 new issues of at least $50 million in market capitalization have been priced, a plump 55% higher than in the same period in 2013.

As a result, plenty of companies are straining at the leash to float their stocks. In the week preceding the holiday, 14 filed plans to list on the various exchanges. There is plenty of life in this market, but like any lively beast it needs to stop for a little R&R before continuing on the hunt.

Before we dig in to our two picks for this week, we need to issue a few words of caution. IPO investing carries above-average risk, since initial stock prices can be far from the value the market eventually puts on the company's shares. This situation provides immense upside potential, but it also opens the possibility of losing a big chunk of an investment.

Now, without further ado ...

Arista Networks
Any company hoping to compete with networking powerhouse Cisco Systems (NASDAQ:CSCO) had better have its act together. Judging by its financials, Arista certainly seems to -- its top line grew five-fold over the 2010 to 2013 fiscal years, from $71.7 million to $361.2 million, while net income ballooned from $2.4 million to $42.5 million. Our increasingly connected world needs this type of technology, so there's probably enough room for at least several key players in the segment.

Arista Networks' IPO is scheduled for Friday, with 5.25 million shares going on sale for $36 to $40 apiece. The company is to list on the New York Stock Exchange under the ticker symbol ANET. Morgan Stanley (NYSE:MS) and Citigroup (NYSE:C) are the issue's lead underwriters.

Speaking of Cisco, one of its former executives -- Bob Tinker -- is the president and CEO of this ambitious company. MobileIron's mission in life is nothing less than "to enable global companies to become Mobile First organizations, embracing mobility as their primary IT platform" through its various solutions. It'll be quite some work to pull corporate America away from the desktop workstations it's been planted at for the past few decades, but if successful, MobileIron could benefit very handsomely. There's obviously interest out there; the company's total revenues zoomed from just shy of $14 million in fiscal 2013 to over $105 million last year.

Last week, MobileIron updated its IPO documentation with the Securities and Exchange Commission, stating that it aims to sell slightly over 11.1 million shares for $8 to $10 per share. The flotation will be lead-underwritten by Morgan Stanley, Goldman Sachs (NYSE:GS), Barclays (NYSE:BCS), and Deutsche Bank Securities, and the stock will trade on the Nasdaq under the ticker symbol MOBL. The IPO date has not yet been set.

Are you ready for this $14.4 trillion revolution?
Have you ever dreamed of traveling back in time and telling your younger self to invest in Apple? Or to load up on Amazon.com at its IPO, and then just keep holding? We haven't mastered time travel, but there is a way to get out ahead of the next big thing. The secret is to find a small-cap "pure play" and then watch as the industry -- and your company -- enjoy those same explosive returns. Our team of equity analysts has identified one stock that's ready for stunning profits with the growth of a $14.4 trillion industry. You can't travel back in time, but you can set up your future. Click here for the whole story in our eye-opening report.

Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Apple, Cisco Systems, and Goldman Sachs and owns shares of Amazon.com, Apple, and Citigroup. 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers