Big Week For IPOs - A Good Sign For Investors

 According to the article below, companies hungry for cash are turning into big winners from the stock market's rally this month and if all the IPOs expected this week get done, a total of nine will go public, the biggest week since November 2007.While the IPO market can quickly turn cold, the fact more companies are successfully going public is encouraging because it shows that investors are still willing to look forward. We hope the good signs keep on coming.
    . . . June


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In good sign for stocks, IPOs are in for a hot week
USATODAY.com:

Companies hungry for cash are turning into big winners from the stock market's rally this month.

Investors snapped up shares of two newly public companies Tuesday, Amyris Biotechnologies and Chinese food chain Country Style Cooking, kicking off the busiest week for initial public offerings since the red-hot days of 2007. If all the IPOs expected this week get done, a total of nine will go public, Renaissance Capital says, the biggest week since November 2007.

The comeback in IPOs is a corporate vote of confidence in the broad market's rally. The Dow Jones industrial average rose 46 points Tuesday to 10,858, pushing it up 12% from 2010's low in July. IPOs rely on a strong stock market, as they tend to be riskier and sensitive to investors' moods. 'This is the busiest week in a long time,' says Francis Gaskins of IPOdesktop.com. 'The window is wide open.'

While the IPO market is fickle and can quickly turn cold, the fact more companies are successfully going public is encouraging because it shows:

•Investors willing to look forward. Both of Tuesday's deals were warmly accepted. Amyris rose 50 cents, or 3%, to $16.50. The company is not profitable and still in its early stages of development. The stock's rise from the IPO price might not seem impressive, but a year ago it probably would have had trouble going public at all, Gaskins says.

Country Style Cooking soared $7.80, or 47%, to $24.30, because investors are excited about the company's growth prospects. "Investors are willing to look ahead," Gaskins says. "Speculative juices are starting to appear."

•Foreign companies still interested in U.S. markets. Two more of the week's other IPOs are Chinese companies, turbine maker China Ming Yang Wind Power and Internet company ChinaCache. Another IPO this week, utility meter maker Elster, is based in Germany. "New York has not been forgotten," says Jay Ritter, professor of finance at the University of Florida, adding that the stock markets in China and Hong Kong have been the busiest for IPOs this year.

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