The market has been kind to risk-takers lately.
Chinese gaming specialist Changyou.com
It's easy to see why companies have been hesitant to go public. The market and economy are in shambles. Investors have grown weary and cynical. It takes a special kind of stock to warm up underwriters and willing investors given the prevailing headwinds.
However, let's take a closer look at the last three companies to complete their IPOs in this country.
| Company |
IPO |
4/2/09 |
Change |
|---|---|---|---|
|
Grand Canyon Education |
$16.68 |
39% |
|
|
Mead-Johnson |
$27.35 |
14% |
|
|
Changyou.com |
$20.02 |
25% |
If this favorable trend doesn't awaken the IPO pipeline, it's hard to imagine what will.
Rosetta Stone, the language software giant, should be the next company to step up to the plate. It had originally filed to go public in September, before shrewdly delaying its market debut. If it's able to pull off its offering later this month, it will clearly be paddling in kinder waters.
Higher learning specialist Bridgepoint Education is also on tap to go public, cashing in on the market's appetite when it comes to for-profit educators. It's a recession-resistant trend that has propelled Grand Canyon Education -- and peers like Apollo Group
The IPO pipeline will turn into a literal gusher if Facebook comes through. The popular social networking site is now looking for a CFO "with experience at a public company." That is as good an IPO teaser as you're going to get from a want ad.
Not every IPO has to be a winner, though it's refreshing to see the cobwebs come off. As part of the Motley Fool Rule Breakers analyst team, our lifeblood is young disruptive growth stocks. We've found many of our winning picks, including Baidu
Keep the spigot running, Wall Street. It's been dry for way too long.
Other games to play:
