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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!