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

The coming days will be filled with stock market debuts, including a diagnostics firm, a renewable-energy yieldco, and a health insurance provider with a unique niche.

Jul 13, 2014 at 12:00PM

Hello; it's nice to see you again. Last week the IPO market took one of its periodic summer breaks, effectively awarding itself a collective vacation to spend some of the estimated $31.5 billion in proceeds it took in for the first half of 2014. That, by the way, is almost 53% higher than the tally at the same time last year. 

If this week is any indication, that percentage will stay nice and chunky. Between now and Friday, 11 companies are slated to go public, with eight of them expected to take in over $50 million from their offerings. Here's a look at three of these issues.

A word of warning before we pull back the curtain, though. 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 on the flip side it also carries the risk of losing a substantial part of an investment.

Roka BioScience
It's going to be a good week for biopharma IPOs; seven of the 11 scheduled issues are in the sector. The largest is likely to be Roka BioScience, a company that specializes in diagnostic solutions that detect foodborne pathogens. According to the firm, this is anticipated to be the fastest-growing segment of the food safety testing market, which totals around $2 billion at present.

Roka BioScience's IPO is scheduled for Thursday. Five million shares will go on sale for $14 to $16 apiece, and the stock should list on the NASDAQ under the ticker symbol ROKA. The lead underwriters of the issue are Bank of America Merrill Lynch, Cowen Group's Cowen and Company, Wedbush PacGrow Life Services, and Leerink Partners. 

TerraForm Power
A hot trend in the renewable-energy space lately has been the yieldco, in which a big producer hives off selected assets into a separate company that distributes the bulk of its profits as dividends. This is analogous to the master limited partnerships currently popular in the oil and gas industry. The large entity in this case is SunEdison (NYSE:SUNE), and the result is going to be the solar-focused TerraForm Power. As of this past March, SunEdison had around 1.9 gigawatts of solar generation assets under management spread across 900 facilities in 12 countries.

Nearly 20.1 million shares of TerraForm Power will hit the market on Friday, priced at $19 to $21 per share. The stock's ticker symbol will be TERP, and it will trade on the Nasdaq. Goldman Sachs (NYSE:GS), Barclays, Citigroup (NYSE:C), JPMorgan Chase's (NYSE:JPM) J.P. Morgan, and Macquarie Capital are the leaders of the big underwriting syndicate.

Well, this is a unique niche. Trupanion provides health insurance that covers everyone's favorite non-human members of the household -- cats and dogs. The firm sells its products via monthly subscription, and it seems there's a robust market for such policies. The top line grew from $19 million in 2010 to almost $77 million last year, and although the company hasn't been profitable, its number of four-legged friends enrolled rose from around 57,000 to 170,000 in that time frame.

Trupanion's stock market debut is to take place on Friday. Just over 7.1 million shares will be sold at $13 to $15 apiece. Royal Bank of Canada's (NYSE:RY) RBC Capital Markets, Barclays, and Stifel are the lead underwriters, and the stock should list on the New York Stock Exchange under the ticker symbol TRUP.

You can't afford to miss this
"Made in China" -- an all too familiar phrase. But not for much longer: There's a radical new technology out there, one that's already being employed by the U.S. Air Force, BMW, and even Nike. Respected publications like The Economist have compared this disruptive invention to the steam engine and the printing press; Business Insider calls it "the next trillion-dollar industry." Watch The Motley Fool's shocking video presentation to learn about the next great wave of technological innovation, one that will bring an end to "Made in China" for good. Click here!

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

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