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 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 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
Several games were played in an exciting week that showed continuing investor fervor for financial exchanges. The players below are ranked according to their returns from their offering price to the close of their first trading day.

Winner: NYMEX

• Ticker: NYSE: NMX
• Industry: Futures exchange
• Deal terms: 6 million shares, $59 per share
• Lead managers: JPMorgan and Merrill Lynch
• Filed: July 17
• Opening day: Nov. 17, opened at $120, closed at $132.99; 125.4% gain
• Bleacher banter: Priced above its increased proposed range of $54-$57, and increased offering size by 500,000 shares; second best debut since 2000

Runner-up: First Solar

• Ticker: Nasdaq: FSLR
• Industry: Alternative energy manufacturer
• Deal terms: 20 million shares, $20 per share
• Lead managers: Credit Suisse and Morgan Stanley
• Filed: June 30
• Opening day: Nov. 17, opened at $24.50, closed at $24.74; 23.7% gain
• Bleacher banter: Priced above its proposed range of $17-$19 per share and increased offering size by 2.5 million shares

Third place: KBR Inc.

• Ticker: NYSE: KBR
• Industry: Engineering and construction; Halliburton spin-off
• Deal terms: 27.8 million shares, $17 per share
• Lead managers: Credit Suisse, Goldman Sachs, and UBS
• Filed: April 14
• Opening day: Nov. 16, opened at $21, closed at $20.75; 22.1% gain
• Bleacher banter: Priced at high end of its proposed range

Allot Communications

• Ticker: Nasdaq: ALLT
• Industry: Israeli broadband solutions provider
• Deal terms: 6.5 million shares, $12 per share
• Lead manager: Lehman Brothers
• Filed: Oct. 31
• Opening day: Nov. 16, opened at $14.50, closed at $13.81; 15.1% gain
• Bleacher banter: Priced above its proposed range of $9-$11 per share

Hertz Global Holdings

• Ticker: NYSE: HTZ
• Industry: Car and equipment rental operator
• Deal terms: 88.2 million shares, $15 per share
• Lead manager: Goldman Sachs, Lehman Brothers, Merrill Lynch, and JPMorgan
• Filed: July 14
• Opening day: Nov. 16, opened at $15, closed at $15.72; 4.8% gain
• Bleacher banter: Priced below its proposed range of $16-$18 per share

Constellation Energy Partners

• Ticker: AMEX: CEP
• Industry: Oil and natural gas developer
• Deal terms: 4.5 million shares, $21 per share
• Lead managers: Citigroup and Lehman Brothers
• Filed: June 14
• Opening day: Nov. 15, opened at $21.75, closed at $21.95; 4.5% gain
• Bleacher banter: Priced at high end of its proposed range

Hansen Medical

• Ticker: Nasdaq: HNSN
• Industry: Medical device manufacturer
• Deal terms: 6.25 million shares, $12 per share
• Lead manager: Morgan Stanley and JPMorgan
• Filed: Aug. 16
• Opening day: Nov. 16, opened at $13, closed at $12.20; 1.7% gain
• Bleacher banter: Priced at midpoint of its proposed range

Venoco

• Ticker: NYSE: VQ
• Industry: Oil and gas producer
• Deal terms: 12.5 million shares, $17 per share
• Lead managers: Credit Suisse, Lehman Brothers, and JPMorgan
• Filed: Dec. 20, 2005
• Opening day: Nov. 17, opened flat and closed flat; 0% gain
• Bleacher banter: Priced below its proposed range of $19-$21 per share

Loser: Emergent BioSolutions

• Ticker: NYSE: EBS
• Industry: Biotech
• Deal terms: 5 million shares, $12.50 per share
• Lead managers: JPMorgan, Cowen & Co., and HSBC
• Filed: Aug. 14
• Opening day: Nov. 15, opened at $12.50, closed at $11.70; 6.4% loss
• Bleacher banter: Priced below its proposed range of $14-$16 per share

On deck
Several offerings are planned for this holiday week, including the following:

AerCap Holdings

• Proposed ticker: NYSE: AER
• Industry: Aircraft lessor
• Proposed deal terms: 26.1 million shares, $22-$24 per share
• Lead managers: Morgan Stanley, Goldman Sachs, and Lehman Brothers
• Filed: Nov. 2

North American Energy Partners

• Proposed ticker: NYSE: NOA
• Industry: Canadian oil and gas services provider
• Proposed deal terms: 12.5 million shares, $19-$21 per share
• Lead managers: Credit Suisse, UBS, and Jefferies & Company
• Filed: July 21

Spirit Aerosystems Holdings

• Proposed ticker: NYSE: SPR
• Industry: Aircraft parts manufacturer
• Proposed deal terms: 52.1 million shares, $23-$25 per share
• Lead managers: Credit Suisse, Goldman Sachs, and Morgan Stanley
• Filed: June 30

Willdan Group

• Proposed ticker: Nasdaq: WLDN
• Industry: Outsource services provider
• Proposed deal terms: 2 million shares, $9-$11 per share
• Lead manager: Wedbush Morgan
• Filed: Aug. 9

Wireless Ronin Technologies

• Proposed ticker: Nasdaq: RNIN
• Industry: Software provider
• Proposed deal terms: 4.5 million shares, $4-$5 per share
• Lead manager: Feltl and Co.
• Filed: Aug. 29

Games of the Week
While folks are flying home for the Thanksgiving holiday, two aircraft deals are hoping to take flight: AerCap Holdings and Spirit AeroSystems.

Generating the most buzz is AerCap Holdings, a Netherlands-based aircraft lessor, which hopes to raise $600.3 million. The company sells and provides aircraft management, engine maintenance, and aircraft repair services to 100 customers worldwide. Last year, the company generated $628.2 million in total revenues and $108.4 million in net income. Given the nature of the company's business, it carries substantial indebtedness, a portion of which will be repaid by the proceeds.

Spirit Aerosystems intends to raise $1.25 billion. The one-year-old company evolved from the acquisition of Boeing Wichita, a division of Boeing (NYSE:BA). The company manufactures fuselages and other components for commercial and military aircraft from its Wichita, Kan., home base, and is the largest independent supplier of aerostructures to Boeing and Airbus.

Both issues are expected to begin trading on Tuesday and could propel your portfolio to new heights. 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
IPG Photonics, a fiber laser maker, announced deal terms of 9 million shares, offered at $13.50-$15.50 per share. The lead managers are Merrill Lynch and Lehman Brothers.

Sent down to the minors
No companies announced postponements of planned offerings last week.

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

Accuray

• Proposed ticker: Nasdaq: ARAY
• Industry: Biotech
• Proposed deal terms: Not yet determined
• Lead managers: JPMorgan and UBS
• Filed: Nov. 13

AmWINS Group

• Proposed ticker: NYSE: AGI
• Industry: Insurance distributor
• Proposed deal terms: Not yet determined
• Lead managers: Merrill Lynch and Wachovia Securities
• Filed: Nov. 13

Diamondback Energy Services Group

• Proposed ticker: Nasdaq: FANG
• Industry: Oil field services provider
• Proposed deal terms: Not yet determined
• Lead managers: Jefferies & Company
• Filed: Nov. 13

Edgen Murray Plc

• Proposed ticker: NYSE: EMY
• Industry: Steel distributor
• Proposed deal terms: Not yet determined
• Lead managers: JPMorgan, Lehman Brothers, and Jefferies & Company
• Filed: Nov. 13

Grupo Aeroportuario del Centro Norte

• Proposed ticker: Nasdaq: OMAB
• Industry: Mexican airport operator
• Proposed deal terms: 10.7 American depositary shares, $14.50-$16.50 per share
• Lead manager: Citigroup
• Filed: Nov. 15

Ocean Power Technologies

• Proposed ticker: Nasdaq: OPTT
• Industry: Alternative energy provider
• Proposed deal terms: Not yet determined
• Lead managers: UBS, Banc of America, and Bear Stearns
• Filed: Nov. 13

Salary.com

• Proposed ticker: Nasdaq: SLRY
• Industry: Compensation software provider
• Proposed deal terms: Not yet determined
• Lead managers: Thomas Weisel
• Filed: Nov. 13

Targa Resources Partners

• Proposed ticker: Nasdaq: NGLS
• Industry: Energy services provider
• Proposed deal terms: Not yet determined
• Lead managers: Citigroup, Goldman Sachs, UBS, and Merrill Lynch
• Filed: Nov. 16

Disabled list
Riata Energy, an oil and gas producer, withdrew its offering.

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:

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 & 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 their prospectuses before buying season tickets.

Last week, the IPO market fared better than the general market -- not surprisingly, given some of the stellar performances. In first place, the IPO Plus Aftermarket (FUND:IPOSX), a mutual fund, gained 4.9%, while the First Trust IPOX 100 (AMEX:FPX), an ETF, rose 2.8%. In the steadily climbing broader market, the Nasdaq advanced 2.3% and the Russell 2000 increased 2.5%.

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

We're publicly offering further Foolishness:

• The IPO Lock-Up Period

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

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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 Fool has a disclosure policy .