IPOs Are Hot Again

The IPO assembly line is cranking out fresh debutantes.

I've got my eye on potential offerings next year for Facebook, Twitter, and Groupon. I'm also digging into the filings of Zipcar, LinkedIn, and other deals that may hit the market in the coming weeks.

However, it doesn't hurt to look back anymore. The once bone dry pipeline of new offerings is a gusher these days. Let's look at some of the strongest IPOs that hit the market during this year's first quarter.

Company

Date

Offer

March 31

Gain

Qihoo 360 (Nasdaq: QIHU  )

March 30

$14.50

$29.59

104%

Endocyte (Nasdaq: ECYT  )

Feb. 4

$6.00

$8.57

43%

Cornerstone OnDemand (Nasdaq: CSOD  )

March 17

$13.00

$18.23

40%

Demand Media (NYSE: DMD  )

Jan. 26

$17.00

$23.55

39%

Gevo (Nasdaq: GEVO  )

Feb. 9

$15.00

$19.70

31%

Source: Dealogic.

China's Qihoo more than doubled despite going public the day before the quarter came to a close. The dot-com darling runs China's second most popular Internet browser. It also offers antivirus software, online games, and other Web-related services. Earnings more than doubled last year, as Qihoo's revenue climbed 79% higher.

Endocyte is a biotech developing targeted therapies for the treatment of cancer and inflammatory diseases. Like many biopharmaceutical upstarts, Endocyte is losing millions of dollars every quarter. The $78.8 million in net proceeds from February's IPO will bankroll its development of potential blockbusters over the next several years.

Cornerstone OnDemand provides a cloud computing platform for human resources. It's been posting losses on growing revenue, but the cloud-based enterprise component has been enough to wow investors lately.

Demand Media is the online juggernaut that attracts more than 100 million viewers across its sites. The disparaging "content farm" label isn't fair. Demand Media's algorithms do lead to its army of freelancers taking on timely and magnetic topics to cover, but isn't that just new media adapting old media's tricks?

Gevo is a developer of biorefinery systems that provide renewable energy solutions for the fuel and chemical industries. The market loves green energy plays these days, but now it's up to Gevo to earn that admiration.

Now let's see how many winners the second quarter can crank out.

Which of this past quarter's IPOs got your attention? Share your thoughts in the comment box below.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Longtime Fool contributor Rick Munarriz is a fan of new stocks, and has even recommended several fresh IPOs to Motley Fool Rule Breakers newsletter readers in the past. He does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy.


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  • Report this Comment On April 06, 2011, at 3:54 PM, TruffelPig wrote:

    I am long ECYT and recommend it (maybe wait until it is around 8.5 again.....or maybe it won't). They have excellent clinical data on their targeted cancer drug and also their concept of individualized cancer therapy is great. Even if their anti cancer drug doesn't fly, their diagnostics alone are probably worth $14/share (analyst estimate). I already made some money in ECYT because it goes a lot up and down. Buy on dip and sell high works on this at least for now....always keep some though, might not get in easy again once it starts running.

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