After starting the year on a high note, economic worries and
uncertainty over the current
have caused volatility to return to the stock market. As a result,
the market for initial public offerings (IPOs) remains tepid. And
recent performance statistics place overall
returns in negative territory so far in 2010.
Despite the tough
market, there are still a number of stocks that have done quite
well. Below is an overview of the most popular and best performing
IPOs during the past year. Better yet, they still have plenty of
room to run as the business cycle heats up and each firm has the
ability to expand its market reach significantly after raising
funds from their recent offerings.
Tesla Motors Inc (Nasdaq: TSLA)
Business: Auto Manufacturing
Trailing 12-month Revenue: $111.9 Million
Tesla's IPO was one of the more widely covered and popular IPOs of
the year. The firm is still tiny by many measures, including
revenue just over $100 million during the past year and a
of less than $2 billion, which places it in small-cap territory.
The stock has done very well, returning more than +20% to investors
that got in at the $17 offering price on June 28th, though it did
dip below the IPO price in early July.
The company's electric vehicle, the Tesla Roadster, is the first
capable of being driven on a highway. The Roadster's commercial
appeal is somewhat unproven, given it is a sports car and was first
introduced in 2008. A four-door sedan will be released in 2012,
which should help the company stem the $55 million loss it posted
during 2009. Despite the more murky financial outlook, the shares
will continue to have appeal, especially to car enthusiasts and if
gasoline prices return to the record highs of a couple of years
Primerica, Inc. (
Business: Financial Services
Trailing 12-month Revenue: $2.3 Billion
Primerica shares are among the best performing IPOs of the year and
are ahead in excess of +50% from the offering price of $15 a share
on March 31st. This is somewhat surprising given the company's
financial services focus exposes it to sweeping regulatory reform.
In fact, financial-related IPOs have been among the worst
performers so far this year.
Primerica has appeal from a number of angles. Its debt
services are countercyclical and the insurance and investment
advice it provides to individuals are also steady performers in any
economic climate. Also, despite the stock's run, the forward
multiple remains quite reasonable at less than 13.
Primerica also qualifies as a spinoff -- it was freed from
) in 2009 and was first acquired by billionaire financier Sanford
Weill's Commercial Credit in 1988 as part of his strategy to build
a global financial empire. Spinoffs have a solid performance track
record as management teams refocus operations without distraction
from a parent owner. As such, Primerica remains one of the most
appealing bets of recently public companies.
TeleNav (Nasdaq: TNAV)
Business: GPS Software
Trailing 12- month Revenue: $155.9 Million
TeleNav shares are up about +14% from the $8 a share offering price
on May 13th. The shares could have further room to run, as the
forward P/E ratio is very reasonable at just over 10. The firm is
growing rapidly as wireless firms are interested in offering their
subscribers TeleNav's location based services, or LBS.
LBS helps mobile phone users find restaurants, movie theaters and
just about any store close to their current location. TeleNav can
also help with driving and walking directions and currently boasts
more than 14 million subscribers, stemming primarily from lucrative
deals with Sprint (
) and AT&T (
) that pay TeleNav a fee for each subscriber on their massive