Two-thirds of 2011's IPOs are below their initial offering price, leaving many investors who bet on the year's newest players worse off than most.
Still, more than 200 initial public offering hopefuls sit in the pipeline, waiting to go make their debut. That's more than at any other time in the past decade, and analysts believe the numbers are unlikely to drop anytime soon.
While many are drooling over the prospect of investing in IPO hopefuls like Facebook, Groupon, or online gaming site Zynga, investing in any IPO is an extremely risky business. Given the market's current volatility and mixed sentiment, many investors simply aren't willing to take the chance. Knowing this, IPOs have been quick to delay their public offering and wait for a more opportune debut.
As a result, just four IPOs began trading in August, compared to 13 in August 2010, and zero this September (so far). Yet companies continue to file for public offerings, remaining hopeful the market will turn bullish in the near future.
"The fate of these companies in waiting is critical because many need new capital to grow, expand and hire new employees. Whether investors will digest such a huge slate of companies will be a big test of the resilience of the stock market," reports USA TODAY.
Do you think delayed IPOs such as Facebook, Zynga, even Toys R Us, to name a few, will make moves anytime soon?
If you're interested in IPO investing, the following list may offer an interesting starting point for your own analysis.
To create this list, we started with the complete list of IPOs over the last year. We collected data on insider transactions, and identified the list of IPO stocks that have seen significant insider buying during the current quarter.
Insider executives think there's more than just IPO hype to these names. They expect more upside from these names -- do you?
(Click here to access free, interactive tools to analyze these ideas.)
1. Aegerion Pharmaceuticals
2. Aeroflex Holding
3. Campus Crest Communities
4. Complete Genomics
5. The KEYW Holding
6. Primo Water
7. QR Energy
8. Tower International
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Becca Lipman and Eben Esterhuizen does not own any of the shares mentioned above. Insider data from Yahoo! Finance.