Bloomberg

Blockbuster IPOs: Where are they now?

  1. Twenty IPOs That Wowed Investors
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    Twenty IPOs That Wowed Investors

    Some stocks make such impressive debuts that investors can't help but pay heed. In the last five years there were 50 U.S. initial public offerings, or IPOs, that jumped more than 35 percent on their first day of trading. History shows that such one-day pops say little about longer-term returns to shareholders, underscoring the danger confronting retail investors in the high-risk IPO market.

    What follows are the 20 biggest IPOs of the last five years, as measured by their first-day stock market pop. Businessweek.com, using Bloomberg Rankings data, has assumed that individual investors would get their hands on shares only a week later. That's because few retail investors can secure them before they go on sale and since initial trading is frequently volatile, prudent investors often wait a bit for swings to settle before buying in.

    Of the 20 examples, only eight stocks were trading higher a year later. (All companies included were based in and traded in the U.S., with at least $100 million in market capitalization after one year of trading. Their IPOs were held between July 1, 2005, and June 30, 2010. Real estate investment trusts, or REITs, and special purpose acquisition companies, or SPACs, were excluded from the ranking. Share prices are adjusted for any stock splits. When a stock's all-time-high price occurred during the first week of trading--and thus before our hypothetical investment--that category is labeled "not applicable.")
    Bloomberg
  2. NYMEX Holdings Inc.
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    NYMEX Holdings Inc.

    First day of trading: Nov. 17, 2006
    Offering price per share: $59
    First-day pop: +125.4 percent
    All-time high: $142.12, June 15, 2007
    $10,000 investment if sold at all-time high*: $10,654 (+6.5 percent)
    $10,000 investment if held one year*: $9,325 (-6.8 percent)

    Nymex operated the New York Mercantile Exchange, which specializes in the trading of commodities. It was acquired by CME Group (CME) on Aug. 22, 2008, by which point the stock had fallen 39 percent from its price a week after the IPO.

    *Investment made five trading days after initial public offering. Includes reinvestment of dividends.
    Data: Bloomberg Rankings
    Bloomberg/NYMEX Holdings Inc.
  3. Chipotle Mexican Grill
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    Chipotle Mexican Grill

    First day of trading: Jan. 25, 2006
    Offering price per share: $22
    First-day pop: +100 percent
    All-time high: $237.76, Nov. 11, 2010
    $10,000 investment if sold at all-time high*: $50,030 (+400.3 percent)
    $10,000 investment if held one year*: $12,504 (+25 percent)

    Chipotle (CMG) operates more than 1,000 quick-service, Mexican-style restaurants with an emphasis on higher-quality ingredients. One of few large U.S. restaurant chains to increase sales during the recession, Chipotle reported that its revenues grew 23 percent in the quarter ending Sept. 30, compared with a year earlier.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings

    Bloomberg/Chipotle
  4. Athenahealth
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    Athenahealth

    First day of trading: Sept. 20, 2007
    Offering price per share: $18
    First-day pop: +97.2 percent
    All-time high: $47.41, Jan. 6, 2010
    $10,000 investment if sold at all-time high*: $13,786 (+37.9 percent)
    $10,000 investment if held one year*: $10,672 (+6.7 percent)

    Athenahealth (ATHN) helps doctor's offices and other medical offices manage records over the Internet. The company's annual revenues rose from $101 million in 2007 to $189 million last year.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings
    Jupiterimages/Athena Health
  5. Under Armour
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    Under Armour

    First day of trading: Nov. 18, 2005
    Offering price per share: $13
    First-day pop: +94.6 percent
    All-time high:$67.10, Aug. 9, 2007
    $10,000 investment if sold at all-time high*: $28,193 (+182 percent)
    $10,000 investment if held one year*: $20,042 (+100.4 percent)

    Founded by a former University of Maryland football player in 1996, Under Armour (UA) makes sports apparel and accessories. Revenues were $856 million last year, almost double 2006 levels.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings
    Under Armor Inc.
  6. American Public Education
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    American Public Education

    First day of trading: Nov. 9, 2007
    Offering price per share: $20
    First-day pop: +79.6 percent
    All-time high: $49.65, Sept. 22, 2008
    $10,000 investment if sold at all-time high*: $14,165 (+41.7 percent)
    $10,000 investment if held one year*: $11,672 (+16.7 percent)

    American Public Education (APEI) runs an online for-profit university under two brands: The American Military University, founded in 1991, primarily serves students in the military, while the American Public University, founded in 2002, is aimed at other public service workers, such as police officers and firefighters.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings
    Getty Images/American Public Education Inc.
  7. Compellent Technologies
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    Compellent Technologies

    First day of trading: Oct. 10, 2007
    Offering price per share: $13.50
    First-day pop: +79.2 percent
    All-time high: $26.06, Oct. 27, 2010
    $10,000 investment if sold at all-time high*: $14,682 (+46.8 percent)
    $10,000 investment if held one year*: $5,499 (-45 percent)

    Compellent Technologies (CML), which reported $125 million in revenues last year, makes storage-area networks, which are combinations of computer software and hardware that allow the storage and management of large amounts of data.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings

    Compellent Technologies, Inc.
  8. Isilon Systems
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    Isilon Systems

    First day of trading: Dec. 15, 2006
    Offering price per share: $13
    First-day pop: +77.7 percent
    All-time high: $33.77, Nov. 15, 2010
    $10,000 investment if sold at all-time high*: $14,159 (+41.6 percent)
    $10,000 investment if held one year*: $2,143 (-78.6 percent)

    Isilon Systems (ISLN) helps businesses store and manage data. On Nov. 15, EMC (EMC) announced a $2.25 billion deal to buy the company for $33.85 a share, 29 percent above Isilon's closing price on Nov. 12.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings
    Isilon Systems Inc.
  9. VMware
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    VMware

    First day of trading: Aug. 14, 2007
    Offering price per share: $29
    First-day pop: +75.9 percent
    All-time high:$124.83, Oct. 31, 2007
    $10,000 investment if sold at all-time high*: $21,774 (+117.7 percent)
    $10,000 investment if held one year*: $6,944 (-30.6 percent)

    VMware (VMW) is the largest maker of virtualization software, which can boost efficiency by allowing one computer or server to run more than one virtual environment. VMware shares have risen 81 percent in 2010, through Nov. 16.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings

    VMWare Inc.
  10. Constant Contact
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    Constant Contact

    First day of trading: Oct. 3, 2007
    Offering price per share: $16
    First-day pop: +72.8 percent
    All-time high: $29.52, Oct. 8, 2007
    $10,000 investment if sold at all-time high*: Not applicable
    $10,000 investment if held one year*: $5,508 (-44.9 percent)

    Constant Contact (CTCT) offers e-mail and other online marketing tools designed for use by small businesses and nonprofits. The company reported $129 million in sales last year, up from $50.5 million in 2007.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings

    Getty Images/Constant Contact Inc.
  11. Fortress Investment Group
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    Fortress Investment Group

    First day of trading: Feb 9, 2007
    Offering price per share: $18.50
    First-day pop: +67.6 percent
    All-time high: $33.07, Apr. 19, 2007
    $10,000 investment if sold at all-time high*: $11,283 (+12.8 percent)
    $10,000 investment if held one year*: $4,380 (-56.2 percent)

    Fortress Investment Group (FIG) is an asset manager specializing in private equity funds, hedge funds, and other alternative investments. The firm had $44 billion in assets under management as of Sept. 30.

    *Investment made five trading days after initial public offering. Includes reinvestment of dividends.
    Data: Bloomberg Rankings
    Comstock/Fortress Investment Group LLC
  12. Acme Packet
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    Acme Packet

    First day of trading: Oct. 13, 2006
    Offering price per share: $9.50
    First-day pop: +67.5 percent
    All-time high: $42.05, Nov. 10, 2010
    $10,000 investment if sold at all-time high*: $24,306 (+143 percent)
    $10,000 investment if held one year*: $9,185 (-8.15 percent)

    Acme Packet (APKT) sells hardware and software that allow the movement of voice, video, and data across computer networks. Shares have risen 13-fold since an all-time low on Nov. 20, 2008.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings
    Acme Packet Inc.
  13. Data Domain
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    Data Domain

    First day of trading: June 27, 2007
    Offering price per share: $15
    First-day pop: +66.3 percent
    All-time high: $40.40, Oct. 8, 2007
    $10,000 investment if sold at all-time high*: $17,558 (+75.6 percent)
    $10,000 investment if held one year*: $10,030 (+0.3 percent)

    Data Domain's products help store large amounts of data more efficiently than other methods by eliminating duplicate files. The company was acquired by EMC (EMC) on July 24, 2009, providing a 46 percent return to shareholders who had bought in a week after its IPO.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings
    Data Domain Inc.
  14. Ulta Salon Cosmetics & Fragrance
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    Ulta Salon Cosmetics & Fragrance

    First day of trading: Oct. 25, 2007
    Offering price per share: $18
    First-day pop: +65.7 percent
    All-time high: $35.43, Oct. 30, 2007
    $10,000 investment if sold at all-time high*: Not applicable
    $10,000 investment if held one year*: $2,787 (-72.1 percent)

    Ulta Salon (ULTA) runs a chain of more than 350 stores that sell beauty-care products and provide such services as manicures and haircuts. The company reported $1.2 billion in sales last year, up 12.7 percent from the previous year.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings
    Comstock/Ulta Salon Cosmetic & Fragrance Inc.
  15. Orion Energy Systems
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    Orion Energy Systems

    First day of trading: Dec. 19, 2007
    Offering price per share: $13
    First-day pop: +64.7 percent
    All-time high: $21.41, Dec. 19, 2007
    $10,000 investment if sold at all-time high*: Not applicable
    $10,000 investment if held one year*: $2,839 (-71.6 percent)

    Orion Energy Systems (OESX) makes products designed to boost energy efficiency and reduce greenhouse gas emissions, including a lighting system that uses 50 percent less energy than traditional systems. In its fiscal year ending in March, the company saw sales slip 9.9 percent, to $65.4 million.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings
    Orion Energy Systems Inc.
  16. EHealth
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    EHealth

    First day of trading: Oct. 13, 2006
    Offering price per share: $14
    First-day pop: +63.6 percent
    All-time high: $35.99, Nov. 16, 2007
    $10,000 investment if sold at all-time high*: $15,648 (+56.5 percent)
    $10,000 investment if held one year*: $11,852 (+18.5 percent)

    EHealth (EHTH) sells health insurance over the Internet. In the quarter ending Sept. 30, sales grew 6.6 percent from the year before. Profits at eHealth, in the form of net income, fell 25 percent.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings
  17. TranS1
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    TranS1

    First day of trading: Oct. 17, 2007
    Offering price per share: $15
    First-day pop: +60 percent
    All-time high: $25.67, Nov. 1, 2007
    $10,000 investment if sold at all-time high*: $10,555 (+5.6 percent)
    $10,000 investment if held one year*: $3,252 (-67.5 percent)

    TranS1 (TSON) makes medical devices that treat problems affecting the lower lumbar region of the spine. After double-digit sales growth in 2008 and early 2009, sales began dropping during the last quarter of 2009. TranS1 has never posted a profit as a public company.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings
  18. OpenTable
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    OpenTable

    First day of trading: May 21, 2009
    Offering price per share: $20
    First-day pop: +59.5 percent
    All-time high: $69.61, Nov. 4, 2010
    $10,000 investment if sold at all-time high*: $26,052 (+161 percent)
    $10,000 investment if held one year*: $14,802 (+48 percent)

    OpenTable's (OPEN) website allows diners to make reservations at more than 15,000 restaurants. Last quarter's revenues were 44 percent higher than a year ago. The company's stock is up 150 percent in 2010, through Nov. 16.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings
  19. Accuray
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    Accuray

    First day of trading: Feb. 8, 2007
    Offering price per share: $18
    First-day pop: +58.2 percent
    All-time high: $29.25, Feb. 9, 2007
    $10,000 investment if sold at all-time high*: Not applicable
    $10,000 investment if held one year*: $3,988 (-60.1 percent)

    Accuray (ARAY) makes the CyberKnife System, an alternative to invasive surgery that uses beams of radiation to treat tumors. In the fiscal year ending June 30, revenues slipped 5.1 percent, to $221.6 million.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings
  20. Intrepid Potash
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    Intrepid Potash

    First day of trading: Apr. 22, 2008
    Offering price per share: $32
    First-day pop: +57.5 percent
    All-time high: $73.23, June 23, 2008
    $10,000 investment if sold at all-time high*: $15,168 (+51.7 percent)
    $10,000 investment if held one year*: $4,768 (-52.3 percent)

    Intrepid Potash (IPI) mines and sells potash, a mineral used in fertilizer. Sales fell 27 percent to $302 million last year, but were up 38 percent year-over-year in the quarter ending Sept. 30.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings
  21. Riverbed Technology
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    Riverbed Technology

    First day of trading: Sept. 21, 2006
    Offering price per share: $9.75
    First-day pop: +56.9 percent
    All-time high: $29.65, Nov. 10, 2010
    $10,000 investment if sold at all-time high*: $36,425 (+264 percent)
    $10,000 investment if held one year*: $26,382 (+164 percent)

    Riverbed Technology (RVBD) makes products that connect computers in wide-area networks, which can include users in various locations. Following triple-digit sales growth from 2005 to 2007, Riverbed's revenues grew just 18 percent in 2009. Growth has accelerated again in 2010, with sales up 45 percent year-over-year in the quarter that ended Sept. 30.

    *Investment made five trading days after initial public offering.
    Data: Bloomberg Rankings
    Riverbed Technology Inc.