Scouting the Latest IPOs

Just like opening day at the ballpark, investing in new IPOs holds the potential for shining promise and crushing disappointment. If you can't bear to simply cheer on your favorites from the sidelines, at least be careful about investing in this league. Many new issues swing for the fences during their first trading days, only to slump once the marketing hype has given way to mundane earnings reports.

Don't commit an error by stocking your entire portfolio with rookies -- allocate just a small percentage of your risk capital to IPOs. Scout your potential phenoms carefully, and be choosy about composing your own rotisserie league. Investing with an eye for a season extending long beyond opening day will reward you with quality players capable of staying in the game.

With that in mind, we offer our Foolish scouting report of the latest IPOs.

Last week's games
Only one game took place last week, and you wouldn't have missed much if you didn't spot it.

Winner by default: Atlas Pipeline Holdings (NYSE:AHD)

• Industry: Oil and gas pipeline
• Deal terms: $23 per share, at the low end of its range; 3.6 million shares
• Lead managers: Lehman Group and Citigroup
• Opening day: July 21; opened flat and closed flat
• Bleacher banter: Although its performance did nothing to spur season-ticket sales, fans can hold their heads high knowing that shares maintained their composure in a down day for the market.

On deck
Several major IPOs are slated for the coming week:

• Alien Technology
  • Proposed ticker: Nasdaq: RFID
  • Industry: Radio frequency identification manufacturer
  • Proposed deal terms: $10-$12 per share; 9 million shares
  • Lead manager: Bear Stearns
    
    
• Chart Industries
  • Proposed ticker: Nasdaq: GTLS
  • Industry: Oil and gas equipment manufacturer
  • Proposed deal terms: $19-$21 per share; 12.5 million shares
  • Lead managers: Morgan Stanley, Lehman, UBS
    
    
• CHG Healthcare Services
  • Proposed ticker: Nasdaq: CHGH
  • Industry: Provider of temporary health care
  • Proposed deal terms: $15-$17 per share; 4.9 million shares
  • Lead managers: Citigroup, Lehman
    
    
• Crystal River Capital
  • Proposed ticker: NYSE: CRZ
  • Industry: Real estate investment trust
  • Proposed deal terms: $26-$29 per share; 9.1 million shares
  • Lead manager: Deutsche Bank
    
• GeoMet
  • Proposed ticker: Nasdaq: GMET
  • Industry: Natural gas producer
  • Proposed deal terms: $13-$15 per share; 6 million shares
  • Lead manager: Banc of America
    
    
• WNS (Holdings) Limited
  • Proposed ticker: NYSE: WNS
  • Industry: Offshore Indian-based business process outsourcing
  • Proposed deal terms: $18-$20 per American depositary share; 10.4 million shares
  • Lead managers: Morgan Stanley, Deutsche Bank, Merrill Lynch

Game of the week
This week should prove interesting, with a fuller schedule that includes players from several industries. With the market beating up technology lately and energy offerings already filling up the new-issues pipeline, a game out of Mumbai could garner some attention. Business process outsourcing provider WNS began as in in-house unit of British Airways (NYSE:BAB) 10 years ago and became incorporated in 2002 to offer its services to third parties. For the quarter ended in March, the company reported $202.8 million in revenues and net income of $18.3 million. Investors will have a lot to cheer about if WNS performs anything like its competitor, Infosys Technologies (NASDAQ:INFY), which went public in March 1999 and popped 37.9% on its first day of trading. That's a nice prize to catch, but it's a lot to expect in these rocky market conditions. Since then, Infosys has returned a more moderate 12.3% from its initial offering price.

Warming up in the bullpen
The timing for the following deals has not yet been determined.

• Osiris Therapeutics, a stem-cell biotech, announced the terms of its proposed offering to include a price range of $11-$13 per share for 3.5 million shares. The lead managers are Jefferies, Lazard Capital, and Leerink Swann.
  
  
• Susser Holdings, a convenience-store operator, announced the terms of its proposed offering to include a price range of $16-$18 per share for 6 million shares. The lead managers are Merrill Lynch, JPMorgan, Jefferies, and Morgan Keegan.

Sent down to the minors
Two companies, coated-paper manufacturer NewPage Holding and brokerage Ryan Beck, cited poor market conditions as reasons to postpone their debuts. In the case of Ryan Beck, its parent, BankAtlantic (NYSE:BBX), also mentioned the need for improved financial results. What wasn't specified but seems as clear as a fly ball to the infield is the poor performance of fellow brokerage Cowen Group (NASDAQ:COWN), which has dropped 2.8% since its opening day on July 13.

Minor-league developments
Get ready, get set . not yet! The latest filings announced last week include:

NYMEX

• Proposed ticker: NYSE: NMX
• Industry: Futures exchange
• Proposed deal terms: Not yet determined
• Lead managers: JPMorgan and Merrill Lynch
• Filed: July 17

Cadence Pharmaceuticals

• Proposed ticker: Nasdaq: CADX
• Industry: Biopharmaceuticals
• Proposed deal terms: Not yet determined
• Lead managers: Merrill Lynch, Deutsche Bank, Pacific Growth Equities, JMP Securities
• Filed: July 17

Globalstar

• Proposed ticker: Nasdaq: GLOB
• Industry: Telecommunications
• Proposed deal terms: Not yet determined
• Lead managers: Wachovia Securities
• Filed: July 17

Innophos Holdings

• Proposed ticker: NYSE: IPI
• Industry: Phosphate salt and acid producer
• Proposed deal terms: Not yet determined
• Lead managers: Credit Suisse, Bear Stearns, and UBS
• Filed: July 19

Qimonda AG

• Proposed ticker: NYSE: QI
• Industry: Semiconductors
• Proposed deal terms: $16-$18 per American depositary share, 63 million shares
• Lead managers: Credit Suisse, Citigroup, and JPMorgan
• Filed: July 21

Gatehouse Media

• Proposed ticker: Nasdaq: GATE
• Industry: Publishing
• Proposed deal terms: Not yet determined
• Lead managers: Goldman Sachs and Wachovia Securities
• Filed: July 21

North American Energy Partners

• Proposed ticker: NYSE: NAE
• Industry: Oil and gas services provider
• Proposed deal terms: Not yet determined
• Lead managers: Credit Suisse, UBS, and Jefferies.
• Filed: July 21

Disabled list
No official withdrawals of planned offerings meant no additions to the disabled list.

Current leaders
Meet our current 2006 leaders. Among companies that went public this calendar year, these firms' percentage returns from their offer prices to last week's closing price rank them as the top five players.

Current benchwarmers
Now meet our current 2006 benchwarmers -- that's nicer to say than "losers," isn't it? Among companies that went public this calendar year, these firms' percentage returns from their offer prices to last week's closing price rank them as the bottom five players.

Groupies and fan clubs
If you don't want to declare your loyalties for specific players but still want to enjoy the action, consider subscribing to an IPO-focused mutual fund or exchange-traded fund. Of course, do your scouting homework here, too, and make sure you read the prospectuses before buying season tickets.

Last week, First Trust IPOX 100 (AMEX:FPX), an ETF, and the IPO Plus Aftermarket (FUND:IPOSX), a mutual fund, lost 1.7% and 1.5%, respectively. The Russell 2000 just barely beat both by declining 1.4%, while the Nasdaq emerged the winner as it slipped a lesser 0.8%.

Keep reading the Fool to see how your favorite players perform as they mature!

We're publicly offering further Foolishness:

• IPO Market Gets Loop-y
• IPOs' Dirty Little Secret

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Fool contributor S.J. Caplan roots for the Cleveland Indians when her husband is watching and for the Boston Red Sox when he leaves the room. She holds no financial position in any firms or funds mentioned here. The Motley Fool has a disclosure policy.