Gogo Inc (GOGO), Tremor Video Inc (TRMR): A Few Recent IPO Misses May Offer Value, or Not

Page 1 of 2

The IPO market can be the wild west for investors, a venue for great gains, and unfortunately great losses. I recently did an article where I looked at a few recent initial public offerings which hit the market last week, you can find that article here. In this article, I would like to take a look at a few offerings over the last couple months which have performed exceptionally poorly since making their public debuts. Some of these names you may be familiar with, while others may less visible.

Gogo Inc (NASDAQ:GOGO)Going nose first

I first wanted to take a look at a name many of use are familiar with, especially the travelers out there. Gogo Inc (NASDAQ:GOGO) is the leading provider of wireless internet in the airlines market with an impressive number of partnerships. Since pricing at $17 per share in late June, shares have tumbled 22.5% to $13.20. The company has aligned itself with the industry leaders including Virgin, American, Delta, United, airTran, and Frontier to name just a few. These great partnerships have allowed the company to gain a monopolist like market share of 81%.

The FCC helped create this monopoly through an exclusive ATG connectivity agreement with the company. In 2006, Gogo Inc (NASDAQ:GOGO) won the auction for the rights to the 3 MHz license for the ATG spectrum which will expire in 2016. However, the road looks rocky in the years ahead as competitors seek market share via additional spectrum and satellite connectivity. Should the company want to maintain its high price structure and market share, management would need to spend heavily on additional spectrum licences. I would avoid the company at this time as the clouds overhead should create a turbulent ride.

No one’s watching

Next up, Tremor Video Inc (NYSE:TRMR), an advertising company specializing in offering its clients engaging video advertisements across an array of devices. The company’s software enables its customers to use past data to maximize the results of future video campaigns. Since being priced last month at $10 per share, shares have declined over 20%. I have been a fan of video advertising for a variety of reasons, including higher brand recognition, purchase intent, and message association when compared to traditional television advertising.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!