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

Among the many new stocks coming to market over the next few days are a pair of spinoffs from prominent companies, and a specialty health-care company.

Jul 27, 2014 at 12:00PM

In terms of IPOs, this month is going out with a Fourth of July-sized barrage of fireworks. Twenty-one new stocks should hit the exchange between now and Friday, and several stand to rake in big bucks if their flotations are successful. Out of the 21, 10 should bring in proceeds over $100 million, provided they sell at the midpoint or higher of their announced price range.

Before taking a brief look at the three of the issues I've chosen to highlight this week, our usual word of caution: Investing in IPOs carries an above-average level of risk, as initial stock prices can be far from the value the market eventually puts on the company's shares. IPOs therefore provide great upside potential, but you also run the risk of losing a substantial part of your investment.

Thanks for reading the warning sticker. Now, the picks.

One of the big beneficiaries of the recent wave of IPOs is financial-services powerhouse Blackstone Group (NYSE:BX), which has kept itself busy bringing chunks of its various portfolio holdings to market. Catalent is one such asset -- a biotech that says it's the world's top provider of advanced delivery technologies for a wide variety of drug and consumer-health form factors. The company has managed to grow its top line over the past few years while shaving net loss, for the most part. 

Catalent's IPO will take place on Thursday, and 42.5 million shares will be sold for $19 to $22 apiece. The stock should list on the New York Stock Exchange under the ticker symbol CTLT.

Synchrony Financial
This week's whopper of an IPO is for this niche company, which could take in gross proceeds of over $3.2 billion if its flotation goes well. Synchrony Financial is a spinoff of General Electric (NYSE:GE), or, more accurately, its mighty financial arm, GE Capital. The soon-to-be independent firm concentrates on specialty credit card products and services, and when accounted for as a standalone unit, it has been consistently profitable since 2009, with high net margins.

No less than 125 million shares of Synchrony Financial will go on sale Thursday, listing on the NYSE under the ticker symbol SYF.

Transocean Partners
It'll be a good week for spinoff companies. This one has been formed by offshore oil drilling specialist Transocean (NYSE:RIG), and it will begin life with 51% ownership stakes in three of its mother company's rigs in the Gulf of Mexico. Apparently those facilities are nice and productive, as Transocean Partners would have taken in $148 million in revenues and netted a profit of $63 million in Q1 if it had existed as an independent entity back then.  

We'll see 17.5 million units of Transocean Partners offered for sale on Thursday. The price is $19 to $21 per unit, and the stock will trade on the NYSE under the ticker symbol RIGP.

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