Purchasing a promising company’s stock right out of the public offering gates can yield great returns for long-term investors. This article will review five best performing IPOs in 2011.
ServiceSource International (SREV)
ServiceSource provides a service revenue management and renewals platform, which helps technology companies improve maintenance, support and subscription revenue streams. ServiceSource International went public on March 24, 2011 with an offering price of $10.00 and an opening price of $13.65. The stock is currently trading at $13.91, yielding a 39.10% return from its offering price and a 1.90% return from its opening price.
It has a market cap of $945.59 million with a price to earning ratio of 25.29. Its earnings per share is $0.55. Its price/earnings-to-growth ratio is 13.23. Quarterly revenue growth is 27.70%. It carries $1.64 million debt and shows $73.44 million in cash. One of SREV’s competitors, Accenture plc (ACN), is currently trading near $57.74. Its 52-week closing range is $42.22 to $63.66. Its earnings per share is $3.40, and price to earnings ratio is 17.00. Price/earnings to growth ratio is 1.54. Quarterly earnings growth is 37.40%. ACN shows $4.42 million in debt and $5.71 billion in cash. Its market capitalization is $37.38 billion.
Qihoo 360 Technology Co. Ltd. (QIHU)
Qihoo 360 Technology Co. Ltd. provides Internet and mobile security products in the People’s Republic of China. Qihoo 360 Technology Co. Ltd. went public on March 29, 2011 with an offering price of $14.50 and an opening price of $27.00. The stock is currently trading at $19.14, yielding a 32.00% return from its offering price and a -29.11% return from its opening price.
It has a market cap of $2.36 billion and is trading at 29.91 times next year’s earnings. Its earnings per share is -$0.06. Its price/earnings-to-growth ratio is 0.88. Quarterly earnings growth is 411.50%. It carries no debt and shows $309.43 million in cash. One of QIHU’s competitors, Microsoft Corporation (MSFT), is currently trading near $26.98. Its 52-week closing range is $23.65 to $29.46. Its earnings per share is $2.69, and price to earnings ratio is 10.03. Price/earnings to growth ratio is 0.96. Quarterly earnings growth is 30.00%. MSFT shows $13.14 billion in debt and $51.37 billion in cash. Its market capitalization is $226.05 billion. Microsoft became very popular among hedge funds, like Greenlight Capital, recently.
LinkedIn Corporation (LNKD)
LinkedIn Corporation operates an online professional network. The company, through its proprietary platform, allows members to create, manage, and share their professional identity online, build and engage with their professional network, access shared knowledge and insights, and find business opportunities. LinkedIn Corporation went public on May 18, 2011 with an offering price of $45.00 and an opening price of $83.00. The stock is currently trading at $85.07, yielding an 89.04% return from its offering price and a 2.49% return from its opening price.
It has a market cap of $8.19 billion is trading at 265.84 times next year’s earnings. Its earnings per share is $0.18. Its price/earnings-to-growth ratio is 43.34. Quarterly earnings growth is 5.10%. It carries no debt and shows $372.11 million in cash. One of LNKD’s competitors, Monster Worldwide, Inc. (MWW), is currently trading near $8.28. Its 52-week closing range is $6.34 to $25.90. Its earnings per share is $0.05, and price to earnings ratio is 159.23. Price/earnings to growth ratio is 1.15. Quarterly revenue growth is 25.50%. MWW shows $122.13 million in debt and $199.03 million in cash. Its market capitalization is $1.02 billion.
Endocyte (ECYT)
Endocyte is a biopharmaceutical company developing targeted therapies for the treatment of cancer and other serious diseases. Endocyte is developing a treatment for ovarian cancer, which is currently entering Phase III trials. Endocyte went public on Feb 4, 2011 with an offering price of $6.00 and an opening price of $6.40. The stock is currently trading at $10.65, yielding a 77.50% return from its offering price and a 66.4% return from its opening price.
It has a market cap of $378.80 million. Its earnings per share is -$2.21. It carries $13.53 million debt and shows $83.89 million in cash. One of ECYT’s competitors, Nektar Therapeutics (NKTR), is currently trading near $4.74. Its 52-week closing range is $4.31 to $16.06. Its earnings per share is -$1.01. Price/earnings to growth ratio is -0.22. Quarterly revenue growth is -59.30%. NKTR shows $230.82 million in debt and $362.91 million in cash. Its market capitalization is $542.34 million.
Carbonite, Inc. (CARB)
Carbonite, Inc. provides online backup solutions for consumers and small and medium sized businesses. Its backup solutions work in the background, automatically, and continuously uploading encrypted copies of its customers’ files to the servers, known as Carbonite Personal Cloud. Carbonite, Inc. went public on August 10, 2011 with an offering price of $10.00 and an opening price of $10.75. The stock is currently trading at $14.05, yielding a 40.50% return from its offering price and a 30.70% return from its opening price.
It has a market cap of $337.20 million. Its earnings per share is -$1.90. Its price/earnings-to-growth ratio is -0.47. Quarterly revenue growth is 58.90%. It carries no debt and shows $16.24 million in cash. One of CARB’s competitors, Symantec Corporation (SYMC), is currently trading near $17.62. Its 52-week closing range is $15.27 to $17.92. Its earnings per share is $0.81, and price to earnings ratio is 21.78. Price/earnings to growth ratio is 1.03. Quarterly earnings growth is 18.60%. SYMC shows $2 billion in debt and $2.30 billion in cash. Its market capitalization is $13.21 billion.