Just like opening day at the ballpark, investing in new IPOs holds the potential for shining promise and crushing disappointment. If you simply can't bear to just 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 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 toward 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
Several games were played last week, with all but one scoring wins. The players are ranked below, according to their returns from their offering price to the close of their first trading day.

  • Winner: Home Inns & Hotel Management
    • Ticker: Nasdaq: HMIN
    • Industry: Chinese economy-hotel operator
    • Deal terms: 7.9 million American Depositary Shares, $13.80 per share
    • Lead managers: Credit Suisse, Merrill Lynch, and Deutsche Bank
    • Filed: Oct. 4
    • Opening day: Oct. 26; opened at $22, closed at $22.50; 63% gain
    • Bleacher banter: Priced above its expected $11-$12 range; another strong showing from recent Chinese debuts.

  • Second place: Gatehouse Media
    • Ticker: NYSE: GHS
    • Industry: Publishing-services provider
    • Deal terms: 11.5 million shares, $18 per share
    • Lead managers: Goldman Sachs and Wachovia
    • Filed: July 21
    • Opening day: Oct. 25; opened at $21.60, closed at $21.17; 17.6% gain
    • Bleacher banter: Strong demand caused the offering to price 2.3 million more shares than anticipated; priced at high end of its range

  • Third place: Douglas Emmett
    • Ticker: NYSE: DEI
    • Industry: Property manager
    • Deal terms: 66 million shares, $21 per share
    • Lead managers: Lehman Brothers, Merrill Lynch, and Citigroup
    • Filed: June 16
    • Opening day: Oct. 24; opened at $23.57, closed at $23.83; 13.5% gain
    • Bleacher banter: Strong demand caused offering to price 11 million more shares than anticipated; priced at high end of its range; among the largest IPOs this year.

  • Optium
    • Ticker: Nasdaq: OPTM
    • Industry: Telecom
    • Proposed deal terms: 5.2 million shares, $17.50 per share
    • Lead managers: Morgan Stanley, Credit Suisse, Cowen, and Jefferies
    • Filed: June 29
    • Opening day: Oct. 27; opened at $21.25, closed at $19.60; 12% gain
    • Bleacher banter: Priced above its expected $13.50-$15.50 range

  • Achillion Pharmaceuticals
    • Ticker: Nasdaq: ACHN
    • Industry: Biotech
    • Deal terms: 4.5 million shares, $11.50 per share
    • Lead managers: Cowen, CIBC World Markets, and JMP Securities
    • Filed: March 31
    • Opening day: Oct. 26; opened at $11.60, closed at $12.39; 7.7% gain
    • Bleacher banter: Priced below its expected range of $14-$16 per share

  • Cadence Pharmaceuticals
    • Ticker: Nasdaq: CADX
    • Industry: Biotech
    • Deal terms: Six million shares, $9 per share
    • Lead managers: Merrill Lynch, Deutsche Bank, Pacific Growth Equities, and JMP Securities
    • Filed: July 17
    • Opening day: Oct. 25; opened at $9, closed at $9.43; 4.8% gain
    • Bleacher banter: Priced below its expected range of $11-$13 per share

  • Loser: Eagle Rock Energy Partners
    • Ticker: Nasdaq: EROC
    • Industry: Natural-gas producer
    • Deal terms: 12.5 million units, $19 per unit
    • Lead managers: UBS, Lehman Brothers, and Goldman Sachs
    • Filed: June 6
    • Opening day: Oct. 25; opened at $18, closed at $18; 5.3% loss
    • Bleacher banter: Priced at the low end of its range.

On deck
Several major IPOs are slated for the coming week, including the following.

  • Globalstar
    • Proposed ticker: Nasdaq: GSAT
    • Industry: Mobile-satellite provider
    • Proposed deal terms: 6.5 million shares, $16-$18 per share
    • Lead managers: Wachovia and JPMorgan
    • Filed: July 17

  • Innophos Holdings
    • Proposed ticker: Nasdaq: IPHS
    • Industry: Phosphates producer
    • Proposed deal terms: 8.7 million shares, $14-$16 per share
    • Lead managers: Credit Suisse, Bear Stearns, and UBS
    • Filed: July 19

  • ORBCOMM
    • Proposed ticker: Nasdaq: ORBC
    • Industry: Satellite operator
    • Proposed deal terms: 11.2 million shares, $12-$14 per share
    • Lead managers: UBS, Morgan Stanley, and Bank of America Securities
    • Filed: May 12

  • RRSat Global Communications
    • Proposed ticker: Nasdaq: RRST
    • Industry: Israeli telecom
    • Proposed deal terms: 3.8 million shares, $11-$13 per share
    • Lead managers: CIBC World Markets and Thomas Weisel
    • Filed: Oct. 11

Games of the week
This lighter week for IPOs features the telecom sector, with three satellite-related companies coming to market.

Each of the companies has its own unique story. Among them, ORBCOMM looks to be the richest offering. The New Jersey-based satellite operator for wireless messaging systems had a $5.4 million net loss against revenues of $12.6 million in the six-month period ending June 30.

Globalstar, a mobile-satellite service provider, is a more familiar name to many recent auto shoppers. The company captured 10.2% of global subscribers in 2005 and boasts $21.7 million profits against $68.7 million in revenues for the six months ending in June.

Finally, RRSat Global Communications, an Israeli provider of leased satellite-broadcast distribution and value-added services, is a rapidly growing company with $3.6 million in profits and $19.7 million in revenues for the same period. While none of these deals is expected to orbit wildly from the moment of takeoff, you might consider taking a ride for the longer run.

As always, make sure you do your own warm-ups and read a company's offering documents before getting in on the game!

Warming up in the bullpen

  • ActivBiotics, a biotech, announced deal terms of four million shares, offered at $12-$14 per share. The lead manager is HSBC.

  • Capella Education, an education-service provider, announced deal terms of four million shares, offered at $17.50-$19.50 per share. The lead managers are Credit Suisse, Bank of America, Piper Jaffray, and Stifel Nicolaus.

  • Emergent Biosolutions, a biotech, announced deal terms of five million shares, offered at $14-$16 per share. The deal is expected to price the week of Nov. 13, and the lead manager is JPMorgan.

  • Hertz Global Holdings, a car and equipment rental provider, announced deal terms of 88.2 million shares, offered at $16-$18 per share. The lead managers are Goldman Sachs, Lehman Brothers, Merrill Lynch, Deutsche Bank, and JPMorgan.

  • KBW, an investment bank, announced deal terms of 6.5 million shares, offered at $19-$21 per share. The lead managers are Keefe, Bruyette & Woods, and Merrill Lynch.

  • Physicians Formula Holdings, a cosmetics manufacturer, announced deal terms of 6.25 million shares, offered at $15-$17 per share. The lead managers are Deutsche Bank and Citigroup.

  • Thermage, a medical-device maker, announced deal terms of six million shares, offered at $11-$13 per share. The deal is expected to price the week of Nov. 6, and the lead manager is Merrill Lynch.

Sent down to the minors

  • ImaRx Therapeutics, a biotech, postponed its offering, originally filed in May.

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

  • Canadian Solar
    • Proposed ticker: Nasdaq: CSIQ
    • Industry: Solar-power system manufacturer
    • Proposed deal terms: 7.7 million shares, $13-$15 per share
    • Lead managers: Deutsche Bank, Lehman Brothers, CIBC World Markets, and Piper Jaffray
    • Filed: Oct. 23

  • Flagstone Reinsurance
    • Proposed ticker: NYSE: FSR
    • Industry: Bermuda reinsurance company
    • Proposed deal terms: Not yet determined
    • Lead managers: Lehman Brothers and Citigroup
    • Filed: Oct. 24

  • Opnext
    • Proposed ticker: Nasdaq: OPXT
    • Industry: Optical module manufacturer
    • Proposed deal terms: Not yet determined
    • Lead manager: Goldman Sachs
    • Filed: Oct. 27

  • Sourcefire
    • Proposed ticker: Nasdaq: FIRE
    • Industry: Network security provider
    • Proposed deal terms: Not yet determined
    • Lead manager: Morgan Stanley
    • Filed: Oct. 25

Disabled list

  • Asthmatx, a medical-device company, withdrew its offering, citing alternative strategic options.

  • BioVex, a biotech, withdrew its offering, citing unfavorable market conditions.

  • Petrie Parkman, a boutique investment bank, withdrew its offering, citing alternative sources of funding.

Current champions
Meet our current 2006 champs. 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.

Company

Return

Description

IPO Date

Acorda Therapeutics (NASDAQ:ACOR)

197.1%

Biotech

2/10/06

Chipotle Mexican Grill (NYSE:CMG)

165.5%

Mexican-restaurant operator

1/26/06

Riverbed Technology (NASDAQ:RVBD)

150.9%

Tech company

9/21/06

Omrix Biopharmaceuticals (NASDAQ:OMRI)

101.3%

Medical-products maker

4/21/06

Volcano (NASDAQ:VOLC)

94.4%

Medical-device maker

6/15/06

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.

Company

Return

Description

IPO Date

Alphatec Holdings (ATEC)

(61.8%)

Medical-device maker

6/2/06

Traffic.com (TRFC)

(58.3%)

Traffic information provider

1/25/06

SGX Pharmaceuticals (SGXP)

(57.3%)

Biotech

2/1/06

Vonage Holdings (VG)

(56.9%)

Telecom

5/24/06

Cardica (CRDC)

(51.9%)

Medical-device maker

2/3/06

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, the IPO market again fared better than the general market. The First Trust IPOX 100 (AMEX:FPX), an ETF, gained 1.7%, and the IPO Plus Aftermarket (FUND:IPOSX), a mutual fund, rose 1.1%. Meanwhile, the Nasdaq and the Russell 2000 gained 0.4% and 0.5%, respectively.

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

We're publicly offering further Foolishness:

Sources: Renaissance Capital's IPOhome.com, SEC filings, Reuters.

Bank of America Securities is a subsidiary of Bank of America, which, along with JPMorgan Chase, is a Motley Fool Income Investor recommendation. For our full list of dynamic dividend-paying stocks, sign up for a free 30-day trial.

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 Fool has a disclosure policy.