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

A niche photography firm, a household services conglomerate, and the country's top arts and crafts retailer will all make their stock market debuts over the next few days.

Jun 22, 2014 at 12:00PM

Just like the weather, the IPO market seems to be heating up for the summer. This week, a pack of 17 new issues are slated to list on various exchanges, beating the previous week's total by three. An investor could build an admirably diversified portfolio simply by opening positions in a grab bag of the stocks coming to market in the coming days.

Before we pick out three selections from that container, though, we have to issue our usual caveat: 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 situation provides great upside potential, but on the flip side it carries the risk of losing a significant part of an investment.

That said, here are this week's selections.

The reigning king of action photography thanks to its lightweight, portable, high-definition cameras that can be mounted on pretty much anything, GoPro is about to GoPublic. The company has a strong and identifiable niche thanks to its popular technology, and it's not too shabby on the business side, either. Revenue has ballooned over the past few years to nearly $1 billion in fiscal 2013, and the company has consistently managed to grow its bottom line.

Shares of GoPro are going on sale Thursday for $21 to $24 apiece, and 17.8 million of them will list on the Nasdaq under the ticker symbol GPRO. The issue's lead underwriters are JPMorgan Chase's (NYSE:JPM) J.P. Morgan, Citigroup (NYSE:C), and Barclays (NYSE:BCS).

ServiceMaster Global Holdings
Describing itself as "a leading provider of essential residential and commercial services," ServiceMaster has a portfolio of brands that clean and restore your home, and even kill the pests lurking in it. The best-known of this set of services is probably Terminix, the bug control specialist, and household clean squad Merry Maids. It's a sprawling company, which despite its size hasn't been profitable in recent fiscal years. But it's managed to grow its top line consistently, and some of those brands (particularly Terminix) are quite strong on the market.  

A total of 35.9 million shares of ServiceMaster Global Holdings will be released on Thursday for $18 to $21 per share. J.P. Morgan, Credit Suisse, Goldman Sachs (NYSE:GS), and Morgan Stanley (NYSE:MS) are lead-underwriting the flotation. The stock will trade on the New York Stock Exchange, bearing the ticker symbol SERV.

The Michaels Companies
In a rather inspiring blend of art and commerce, this operator is the No. 1 arts-and-crafts supplies retailer in the nation. It boasts a 1,263-strong network of stores, which draw nearly half of their revenue from the firm's proprietary branded products. Michaels has done a good job stitching a pattern of growth since the beginning of this decade, with the bottom line more than doubling from fiscal 2010 to 2013.

The Michaels Companies will make its stock market debut on Friday, trading on the Nasdaq under the ticker symbol MIK. Nearly 27.8 million shares will be offered for sale at a price of $17 to $19, and the issue's lead underwriters are J.P. Morgan, Goldman Sachs, Barclays, and Deutsche Bank Securities. 

Will this stock be your next multi-bagger?
Give us five minutes and we'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! You don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs and owns shares of Citigroup 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