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

The coming days will see the market debuts of Chinese social media platform Weibo, veteran IT services provider for the travel industry Sabre Holdings, and outdoor activities superstore operator Sportsman's Warehouse Holdings.

Apr 14, 2014 at 8:41AM

It'll be another busy few days for the IPO market this week, with no less than 13 issues making their stock exchange debuts. There won't be a monster IPO like last week's $2.4 billion flotation of Ally Financial, or the $650 million sale of hotel chain La Quinta Holdings.Rather, the slate over the next few days is filled with smaller issues.

Of course, there are the outliers -- namely this week's blockbuster, the $850 million travel services company Sabre stands to make, and the $360 million or so hoped for by Chinese Internet titan SINA (NASDAQ:SINA) for its social media brand Weibo.

Before we look at our three selections for the coming days, we have to issue our usual warning: 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.

With that out of the way, let's get into it.

Sabre Holdings
Anyone who's traveled at all over the past few decades has, one way or another, almost certainly utilized the services of this IT company. In its various corporate incarnations over the years, Sabre Holdings has been the dominant technology solutions provider in the travel business for many years. It also controls a host of travel-related assets, such as the popular Travelocity website. This isn't the first time it's gone public; it made its original market debut in 2000 and stayed on the bourse until being taken private by a pair of financial services companies -- TPG and Silver Lake Partners -- in a 2006 deal for around $5 billion.Those investors stand to gain handsomely if Sabre's IPO 2.0 is successful.

Sabre Holdings is to be listed on the Nasdaq and bear the ticker symbol SABR. Just over 44.7 million shares of stock will be sold at $18 to $20 apiece on Thursday. The big underwriting syndicate is headed by Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS), Bank of America Merrill Lynch, and Deutsche Bank Securities.

Sportsman's Warehouse Holdings
Want to spend your leisure time hunting, fishing, or zooming around on an ATV? If the answer is "yes," then this store chain is more than worthy of a visit. Claiming that it has "the largest outdoor specialty store base in the Western United States and Alaska," Sportsman's Warehouse these days boasts 49 stores in 18 states. It's done a good job improving its results, staying comfortably in the black while steadily growing total sales. There's a lot of the great outdoors in America, and many fun-seeking Americans looking to take advantage of that, so the company has a healthy market to profit from.

A total of 12.5 million shares of Sportsman's Warehouse Holdings are slated to hit the market on Thursday, at a price of $11 to $13 per share. The stock should be listed on the Nasdaq under the ticker symbol SPWH. The lead underwriters of the issue are Credit Suisse (NYSE:CS) and Goldman Sachs. 

Chinese Internet stocks have been in the doldrums of late; Web conglomerate SINA hopes the flotation of its Weibo microblogging platform will change that. Often compared to Twitter (NYSE:TWTR), Weibo has a nine-figure strong army of users (129 million of the active monthly variety as of the end of 2013, compared with Twitter's 241 million), and like its U.S. counterpart has seen a pronounced uptick in revenues lately. Unfortunately, it's also aping Twitter in posting consistent bottom-line losses, although in contrast to that company it's managed to narrow them over the past few years.

Weibo will make its market debut on Thursday, with the sale of 20 million American depositary shares priced at $17 to $19 per ADS. These are to be listed on the Nasdaq under the ticker symbol WB. Goldman Sachs and Credit Suisse are heading the underwriting syndicate.

R.I.P. Internet -- 1969-2014
At only 45 years old, the Internet will be laid to rest in 2014. And Silicon Valley is thrilled. The Economist believes the death of the Internet "will be transformative." In fact, the CEO of Cisco Systems -- one of the largest tech companies on the planet -- says somebody's going to bank "$14.4 trillion in profit from one concept alone."

Click here for a free video that gives you what you need to capitalize on the little-known company behind this concept.


Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Bank of America, Goldman Sachs, SINA, and Twitter and owns shares of Bank of America and SINA. 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