Tag Archives: IPO

Lucio & Susan Co's Puregold Taps Into Middle Class Shopping Spree

By Naazneen Karmali, Forbes Staff

Lucio and Susan Co, a husband-and-wife team, have struck gold with their Puregold Price Club, a chain of over 150 hypermarkets, supermarkets and discount stores. Starting with one store in 1998, the Cos have expanded at a rapid pace, lately through acquisitions, to build Puregold into the country’s second-largest retailer, after Henry Sy’s SM group. Contrary to what its name suggests, a typical Puregold outlet stocks not fancy goods but a range of cheap merchandise aimed at a rising population of middle-class shoppers and owners of neighborhood convenience stores, known as sari-sari stores. (It claims to have over 230,000 of them as its customers.) Since 2010 the retailer’s revenues have doubled to $1.3 billion with net profits increasing fivefold to $65 million. Lucio’s retailing background is linked to running duty-free airport shops, including at Clark International Airport, a former American air force base northwest of Manila. With Puregold the Cos have earned both respectability and fabulous riches. Since 2011, when they took the company public, its shares have soared threefold. “Puregold is the country’s only pure play retail company, and it’s on an aggressive growth trajectory. Investors like that,” says Lauro Baja, country head of Philippines, which was a lead manager in its IPO. Puregold’s meteoric rise is linked to a domestic consumption boom that has been the mainstay of the Philippines’ growth story. If consumer confidence remains upbeat, the retail market is expected to grow to $75 billion by 2017. Other tycoons are lining up to cash in on the middle-class shopping spree. Recently, Land, Jaime Zobel de Ayala’s (No. 6) property unit, announced it was partnering with Puregold in a new joint venture to operate “midmarket” supermarkets. The Ayala firm last year teamed up with Bienvenido Tantoco Sr. (No. 40) to bring Japanese convenience store chain FamilyMart to the Philippines. John Gokongwei Jr. (No. 5) is preparing to list his Robinsons Retail Holdings, a franchisee of Toys “R” Us, among much else. The IPO is expected to be the country’s largest ever. –N.K. …read more

Source: FULL ARTICLE at Forbes Latest

Bailed-Out Chrysler Thriving and Ready for IPO by Year End

By David Kiley

Chrysler 2014 Jeep Cherokee Trailhawk.

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AP

Chrysler Group, pumped up by the strong demand for its Jeep vehicles and Ram pickup truck, reported healthy second quarter earnings. Its CEO said the solid performance had the company poised for an initial public offering by the end of this year.

Chrysler reported net income of $507 million for the second quarter, up 16 percent from the same period a year earlier. The company said modifications it needs to make to the Jeep Cherokee and Liberty models to prevent fires will take a bite out of earnings for 2013.

CEO Sergio Marchionne, who also serves as CEO of Italian automaker Fiat, which has a controlling stake in Chrysler, said the company is preparing paperwork for its long-awaited IPO. “November or December would be the ideal time” for the Chrysler listing, said Marchionne.

Will there be demand for Chrysler stock? Auto stocks have underperformed the market the last two years except for Tesla Motors. And General Motors, which along with Chrysler was the beneficiary of taxpayer-assisted bankruptcy in 2009, has not enjoyed great demand for its shares until recently.

For more on Chrysler’s fortunes, get the rest of the story at AOL Autos.

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…read more

Source: FULL ARTICLE at DailyFinance

Facebook Stock Just Pennies Shy of Hitting IPO Price Again

By Reuters

Hand holding a smartphone with a Facebook logo in front of dollar bills, symbolic image for the Facebook IPO

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Alamy

By Alexei Oreskovic

Facebook’s (FB) stock on Tuesday came within a hair of reclaiming its $38 debut price for the first time since going public in 2012, a milestone in the social networking company’s effort to wipe away Wall Street’s skepticism of its business.

The stock has surged more than 40 percent in the past week after the company reported blowout quarterly results that showed Facebook’s progress building a mobile advertising business. Shares of Facebook climbed as much as 7 percent to $37.96 in heavy trading on Tuesday, before settling back to finish the regular session at $37.63.

The social network, with 1.15 billion users, has never traded at or above $38 since the first few days after its initial public offering in May 2012.

Facebook’s market value was cut in half in the months following the IPO as concerns about issues ranging from slowing revenue to massive insider selling made the Internet company’s stock a Wall Street punch line.

“Most companies of that size don’t re-accelerate their growth rate. Facebook’s been an exception,” said Aaron Kessler, an analyst with Raymond James. “I would say they’re in better shape today than they were at the IPO price and the stock is still below that.”

Facebook options volume was frenzied on Tuesday, as overall turnover was 3.8 times the recent daily average, according to options analytics firm Trade Alert. Traders on Tuesday exchanged 694,000 calls and 300,000 puts on Facebook.

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The most popular options were the weekly $38 and $37 strike calls expiring this Friday as most traders expected gains in coming days. One player liked the weekly $32.50 strike puts expiring on Aug. 9, which appeared to be bought 15,000 times for only a dime, said options strategist Frederic Ruffy.

Facebook’s recent success building a mobile advertising business — an area where many of its rivals have struggled — and the online service’s expanding number of daily users have won back investors’ respect and confidence in its prospects. That has fueled a rebound in the shares, which are up more than 50 percent in July.

Facebook said last week its mobile advertising revenue grew 75 percent in a span of three months, trouncing analyst targets and delivering the company’s strongest revenue growth since the third quarter of 2011. Many analysts raised their price targets above the $38 level following Facebook’s quarterly report last week.

The second quarter results “were really a game-changer in terms of how Facebook is perceived on the Street,” said Pacific Crest Securities analyst Evan Wilson. “It was pretty close to the perfect quarter.”

Facebook announced plans on Tuesday to help market and distribute mobile games on its social network in exchange for a cut of revenue that the games generate, raising hopes that the company could tap a new business. And many investors expect Facebook …read more

Source: FULL ARTICLE at DailyFinance

Why Do Most Of The Successful Startups Come Out Of The USA?

By Quora, Contributor

I meet with startups from around the world. There are several reasons that more big tech startups come from here than from any other place. Access to role models. One CEO, as we drove by Apple’s headquarters, told me how he watched Apple growing up from a startup, like I did (I lived a mile or two away and got a tour when it was smaller than Y Combinator back in 1977). He said “if Apple can do it, anyone can.” More on why role models are so important later. Access to funding. Apple needed funding to get started. So does every startup. Only a few can go it on their own with just friends and family money. But here even friends and family money is easier to get because of the role models. We all know that if we give you $10,000 (what GoPro started up with, by the way, less than two hundred yards from my house) that it could become a billion-dollar company someday. How many people around the world know that’s possible? Not many, in my experiences. Access to business infrastructure. Need a lawyer that understands how to help startups? They are here. Need an office with good startup help? Go see something like Plug-n-Play that houses 300 startups. Need a PR firm? They are here. Need a mentor who has built a company before? They are here. Need a launch vehicle, like a conference? They are here. Need a CFO who understands how to get a company ready for an IPO? They are here. Etc., etc. Yeah, they might also exist elsewhere, but not in high concentrations like in San Francisco, Seattle, Boston, New York, Los Angeles. Access to distribution. How will you get your new service into the hands of people? How about app stores? Amazon, Apple, Google, Microsoft, and Facebook have them. Who else? No one with serious ones. How about search engines? How about partnership possibilities (want OpenTable to distribute your stuff, for instance?)? Those distribution and partnership opportunities are probably in San Francisco or New York. Rarely other places. Not to mention that most of the world’s tech press is located in San Francisco or New York. Access to monetization capabilities. You want ads? New York has them. Who else will deliver you the USA market, which is still the richest in the world (at least for a few years until China totally takes over). There are other markets that can monetize, but they are not as profitable and harder to kick off a worldwide brand with. Access to Talent. The modern company will probably need a big data expert. Someone who knows how to push around a big Hadoop cluster, for instance. Do you have one in your local community? Probably not, but they exist like flies in the San Francisco area. Google, and many Silicon Valley tech companies (HP, Cisco, Sun, Yahoo) started at Stanford University, which continues to pour out a lot of top-rate engineering and business talent. …read more

Source: FULL ARTICLE at Forbes Latest

Are Commercial Loans Making A Comeback?

By Larry Myler, Contributor

After years of tight-fisted banks saying “no” to your requests for commercial loans, it looks like the dam may finally be breaking. Lenders seem to be more willing of late to share some of their liquidity with you, the entrepreneur. This is a funding source that has been largely absent since early 2008, but with its resurgence, you might consider it a viable option for growing your business. However, not everyone who wants/needs business capital can get it from banks. Here are a few tips to consider: Cash flow is king. One of the fundamentals of loan underwriting is an assessment of the borrower’s ability to repay. If you have strong cash flows, you are a good risk. What is your net worth? Banks like deals that can be collateralized by real estate, a company’s receivables, or other assets. If you (or your business) can show a strong balance sheet, your chances of getting a loan go up dramatically. Different institutions like different deals. It may take a few tries to find the right lender for your loan. Some will be interested in working with you and your business and others won’t. Don’t get discouraged if you have to kiss a few frogs. Be patient. The process of loan origination, underwriting and funding can be tedious and protracted, but it can also be well worth your time and effort. Bank funding can be one of the cheapest sources of capital for your growing business because you only pay interest, which means you don’t have to give up equity to a VC, angel, or other funding entity that hopes for a huge upside from an exit strategy like an IPO or sale of the company. If you can qualify for bank financing it may be your best option, and now could be your best time in years to move forward. …read more

Source: FULL ARTICLE at Forbes Latest

Why 99.95% Of Entrepreneurs Should Stop Wasting Time Seeking Venture Capital

By Dileep Rao, Contributor

It is difficult to pick up a major business publication today without reading about venture capitalists (VCs, defined as professionally-managed VC limited partnerships that invest in early-stage ventures), about their skills in finding great investment opportunities, and about the ventures they fund. And lately in states like Minnesota, it is also about how they can create jobs if the governor would speak favorably about the need for VC and offer some state pension money for them to invest. And since we all like to talk about our successes, the stories are about how entrepreneurs secured VC and soared to wealth in a very short time via an IPO or a strategic sale. This can lead other entrepreneurs to think that this is the only model for success, that there is no other way to build a major company, and that they should write business plans, attend VC conferences, seek VC, and give VCs control of their venture. …read more

Source: FULL ARTICLE at Forbes Latest

Market Minute: SeaWorld Goes Public, Valued at $2.5 Billion

By DailyFinance Staff

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Jason Collier, AP

One of the biggest IPOs this year could make a big splash today. Theme park operator SeaWorld was priced at the high end of expectations, $27 a share. That values the company at $2.5 dollars.

Two out of three ain’t bad: That’s the scorecard from the three tech giants that reported quarterly results late yesterday.
Microsoft’s (MSFT) profit rose by a better-than-expected 19 percent to more than $6. Sales of server software and Xbox video games were strong, but newly booked revenue from Windows was essentially flat.

Google’s (GOOG) net rose 16 percent, also topping expectations. Revenue growth in its core advertising business was also strong.

But IBM (IBM) came up short of Street expectations and revenue was hurt by sluggish demand from corporate tech customers. It the first time IBM has missed the target since 2005. Separately, Big Blue is in talks to sell its huge server business to China-based Lenovo.

General Electric’s (GE) net rose 16 percent, in line with expectations. Revenue was flat, but a bit stronger than expected. GE is often considered a bellwether for the broader economy.

Blackstone Group (BX) has withdrawn its offer for Dell (DELL) after discovering the computer maker’s business is deteriorating faster than previously thought. That leaves only investor Carl Icahn as a possible rival to the bid from a group led by company founder Michael Dell to take the company private.

It was seven months ago today that Apple (AAPL) shares hit their all-time high of $702; they closed yesterday at $392. That’s a drop of 44 percent.

And Netflix (NFLX) is hoping to build on the success of its “House of Card” series with a second original program. Today it begins streaming the entire first season of a gothic horror series, “Hemlock Grove.”

-Produced by Drew Trachtenberg

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From: http://www.dailyfinance.com/on/seaworld-IPO-stock-market-news/

Interview with Taminco CEO Laurent Lenoir

By Tom Taulli, Contributor

1967 International Scout 800 Sport Top

In a tough market, Taminco (NYSE:) pulled off its IPO today. The company is a specialty chemical operator that focuses on the production of alkylamines and alkylamine derivatives, which help to treat water, protect crops and improve personal/home care products like shampoos.

From: http://www.forbes.com/sites/tomtaulli/2013/04/18/interview-with-taminco-ceo-laurent-lenoir/

What is Supply and Demand?

By Selena Maranjian

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Getty Images

April is Financial Literacy Month, and our goal is to help you raise your money IQ. In this series, we’ll tackle key economic concepts — ones that affect your everyday finances and investments — to help you make smarter choices with every dollar decision you face.

Today’s concept: supply and demand.

Most folks are familiar with the concept of supply and demand, but most of us also don’t give it much thought, which is a mistake. That’s because it applies to much more than just business.

First, to review. In basic economics, the law of supply and demand influences prices. If supply of an item is abundant, that will pressure the price downward, and vice versa. In practice, imagine that you’re the only one in town selling shoehorns. Because consumers don’t have any other places to buy the product, that gives you some pricing power. But if other stores in town start carrying shoehorns, you may have to drop your price to keep customers coming.

In the Stock Market

Similar principles are at work in the stock market. Once stocks are launched into the market via an initial public offering, or IPO, their prices aren’t set by the companies behind the stocks, or even the brokerages processing the trading. Instead, they reflect the shares’ supply and demand.

As an example, think of retailer J.C. Penney (JCP). Its stock closed at $15.87 per share on April 8. But on April 9, it closed around $13.92, down more than 12 percent in a single day.

What happened? Well, the struggling company’s CEO, Ron Johnson, was dismissed, replaced by a former CEO, Mike Ullman. The fact that the stock price sank reflects a lack of confidence in the company — or a lack of demand for its shares. If investors were more optimistic about the company and Ullman’s leadership potential, demand for its shares would have risen, driving the price up.

Meanwhile, shares of Yahoo (YHOO) have surged more than 50 percent since Marissa Mayer took the reins of the company. That increase reflects confidence in her leadership and the company’s future — via an increased demand for shares.

In Our Lives

Shortages and surpluses affect other areas of our lives, too, such as careers. There’s a good case to be made for pursuing the career that most excites you, but you would also do well to factor in the supply and demand for that occupation and others.

There are many lists of jobs that are expected to be in great demand in the coming years. The folks at Randstad, for example, a major global staffing company, have listed “13 Hot Jobs for 2013.” They include registered nurses, physicians (specializing in urgent care and anti-aging medicine), drug safety specialists, mortgage underwriters, loan documentation specialists, accountants, manufacturing production specialists, industrial

From: http://www.dailyfinance.com/2013/04/16/supply-and-demand-definition/

Proof That Facebook's Marketing Magic Is Working

By Steve Heller, The Motley Fool

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General Motors is advertising once again on Facebook after an 11-month hiatus that raised questions about the value of social media advertising. Back then, General Motors had trouble seeing any meaningful correlation between social media advertising and sales results, motivating it to pull its $10 million advertising budget off the platform. At the time, Facebook had far fewer campaign measurement tools to prove the effectiveness of social media advertising. Fast-forward to today, and Facebook has better tools in place to prove its worth as a valuable medium for marketers. In this video, Motley Fool contributor Steve Heller weighs in on the development and what it means for Facebook investors.

After the world’s most hyped IPO turned out to be a dunce, most investors probably don’t even want to think about shares of Facebook. But there are things every investor needs to know about this company. We’ve outlined them in our newest premium research report. There’s a lot more to Facebook than meets the eye, so read up on whether there is anything to “like” about it today, and we’ll tell you whether we think Facebook deserves a place in your portfolio. Access your report by clicking here.

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From: http://www.dailyfinance.com/2013/04/15/proof-that-facebooks-marketing-magic-is-working/

Cows (Humor)

By Sharp Advice

:coffee:

Subject: Cows

DEMOCRATIC
You have two cows.
Your neighbor has none.
You feel guilty for being successful.
Barbara Streisand sings for you.

REPUBLICANISM
You have two cows.
Your neighbor has none.
So What?

SOCIALIST
You have two cows.
The government takes one and gives it to your neighbor.
You form a cooperative to tell him how to manage his cow.

COMMUNIST
You have two cows.
The government seizes both and provides you with milk.
You wait in line for hours to get it.
It is expensive and sour.

CAPITALISM, AMERICAN STYLE
You have two cows.
You sell one, buy a bull, and build a herd of cows.

BUREAUCRACY, AMERICAN STYLE
You have two cows.
Under the new farm program the government pays you to shoot one, milk the other, and then pours the milk down the drain.

AMERICAN CORPORATION
You have two cows.
You sell one, lease it back to yourself and do an IPO on the 2nd one. You force the two cows to produce the milk of four cows. You are surprised when one cow drops dead. You spin an announcement to the analysts stating you have downsized and are reducing expenses.
Your stock goes up.

FRENCH CORPORATION
You have two cows.
You go on strike because you want three cows.
You go to lunch and drink wine.
Life is good.

JAPANESE CORPORATION
You have two cows.
You redesign them so they are one-tenth the size of an ordinary cow and produce twenty times the milk. They learn to travel on unbelievably crowded trains. Most are at the top of their class at cow school.

GERMAN CORPORATION
You have two cows.
You engineer them so they are all blond, drink lots of beer, give excellent quality milk, and run a hundred miles an hour. Unfortunately they also demand 13 weeks of vacation per year.

ITALIAN CORPORATION
You have two cows but you don’t know where they are.
While ambling around, you see a beautiful woman.
You break for lunch.
Life is good.

RUSSIAN CORPORATION
You have two cows.
You have some vodka.
You count them and learn you have five cows.
You have some more vodka.
You count them again and learn you have 42 cows.
The Mafia shows up and takes over however many cows you really have.

TALIBAN CORPORATION
You have all the cows in Afghanistan, which are two.
You don’t milk them because you cannot touch any creature’s private parts. You get a $40 million grant from

From: http://www.doityourself.com/forum/general-chats-discussions/493245-cows-humor.html

Facebook Has Spring Awakening With 'Home' Launch And Newsfeed Redesign

By Rachel Hennessey, Contributor

Facebook, Inc. has been around for nearly a decade now, and not even its disappointing IPO last May will curtail development.  The company continues to unveil new features for its 1 billion users.

From: http://www.forbes.com/sites/rachelhennessey/2013/04/14/facebook-makes-a-comeback-this-spring-by-offering-a-new-home-screen-experience-for-android-users-and-redesigning-the-newsfeed/

Why Aren't These 4 Stock Giants in the S&P 500?

By Dan Caplinger, The Motley Fool

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The S&P 500 Index includes 500 of the biggest companies in the U.S. market. But for various reasons, some large companies have gotten left out of the benchmark index. Let’s look at four of the largest ones and try to figure out whether Standard & Poor’s will remedy their omission in the near future.

Facebook
With a market capitalization of more than $65 billion, Facebook erupted onto the public markets last year to great fanfare and even greater disappointment. Yet despite the social-media giant’s woes, the company has been slowly getting itself onto some major market benchmarks, most notably the Nasdaq 100 index.

For Facebook to get into the S&P, current standards require that the company be “seasoned for six to 12 months.” With the company coming up on its one-year IPO anniversary, Facebook should expect to be in investors’ index portfolios in the very near future.

Las Vegas Sands
As a worldwide casino gaming giant, Las Vegas Sands has a $46 billion market cap, which would easily be enough to put it into the top 100 companies, let alone the top 500. But during the 2008 market meltdown, the stock traded as low as $1.38 per share, bringing its market cap down to small-cap territory.

Another key reason Las Vegas Sands hasn’t regained admittance to the S&P 500 probably has to do with CEO Sheldon Adelson’s substantial insider stake in the company. S&P prefers that companies have ample shares constituting the public float in order to meet index-fund demand, and with less than half of its outstanding shares actually available for trade, Las Vegas Sands may get left off the benchmark index for a while unless Adelson decides to divest himself of his big holdings.

General Motors
GM‘s bankruptcy in 2009 resulted in a huge reorganization that included having the U.S. Treasury hold a substantial stake in the automaker’s new stock. Although the Treasury has made some sales of stock, it still owns nearly $8 billion in GM — not quite a fifth of the automaker’s overall market cap. Other parties to the bankruptcy proceeding, including auto unions, also hold big share positions.

The result is that of GM‘s outstanding shares, barely 40% are available to investors. Until the Treasury and other parties sell off more of their positions, GM is unlikely to gain admittance to the S&P 500.

VMware
Cloud-computing giant VMware is an example of how corporate structures can give individual-stock investors opportunities that index funds lack. As a roughly 80%-owned subsidiary of EMC, VMware lacks a substantial float, which makes it unlikely that the stock will ever get into the S&P as long as EMC retains its stake.

Keep your eyes on Facebook
Of these four stocks, Facebook is the most likely to find itself part of the S&P in the near future. As lockup expirations have increased its float, its high market cap and importance in

From: http://www.dailyfinance.com/2013/04/14/why-arent-these-4-stock-giants-in-the-sp/

Hope's High with Home Depot Stock and These 2 Other Companies

By Rich Duprey, The Motley Fool

Filed under:

Flying in the face of lower March retail sales and plunging consumer confidence, Home Depot‘s stock advanced 2.5% yesterday and singlehandedly kept the Dow Jones Industrial Average from falling. In the end, the index closed the day at 14,865, virtually unchanged from the day before.

Yet it wasn’t anything the big box, do-it-yourself shop did on its own that really sparked the rally. Instead it was an analyst upgrade from Jeffries along with an IPO filing by its former wholesale supply business, HD Supply. The latter is probably the larger reason behind the jump in stock, as the proposed $1 billion IPO would place a few coins in Home Depot‘s pocket, since it retained a 12% ownership stake in the business after private equity bought it for $8.5 billion in 2007.

The supply business is a vestige of the horrendous period of empire-building engendered by former CEO Bob Nardelli, a ruinous time where the board of directors, stuffed with his cronies from General Electric, stood by and watched him crush shareholder value. There’s since been a welcome change in leadership, and Home Depot has gone on to become a responsible corporate citizen once more, with shares up 20% in 2013 alone and more than 50% higher than where they stood a year ago.

The HD Supply offering could put even more money in Home Depot‘s bank account since the supply house hasn’t determined the number of shares it will actually offer, meaning the IPO could ultimately be much larger than $1 billion, increasing its value to the Big Orange Box.

Lethargic networks
As Home Depot rose in value over the past year, Active Network , an online event-management service, has been going in the opposite direction, suffering a yearlong decline that’s resulted in the loss of 70% of the company’s value. Yesterday, though, it went in the other direction, jumping more than 10% after announcing that it will soon be reporting its earnings.

Hardly seems a reason for such a response, considering expectations are that growth will slow this year even if losses will narrow. Yet it also announced an expansion of its partnership with Ironman, an international participation-sports challenge organization that grew from a single race to some 190 events. Active will provide Ironman with a seamless global platform for activity participation and registration.

Perhaps the combination of the two announcements gives investors hope that it will finally be able to reverse its yearlong slide.

Dance card filling up
Can a deal finally be at hand that allows InterOil to deliver on the expectations it’s promised investors for so long? We’ve been waiting more than a month for the Papua New Guinea oil-exploration specialist to decide whom it will partner with. The government of the tiny oil outpost demanded that it be a “supermajor” oil company (at the same time it was extracting better terms for itself) as a way of guaranteeing that the oil will

From: http://www.dailyfinance.com/2013/04/13/hopes-high-with-home-depot-stock-these-2-other-com/