Investing

The Best of the Best IPOs from 2010 (MCP, BSFT, CIS, FN, HSFT, JKS, MMYT, QLIK, RP, VRA, YOKU)

BroadSoft Inc. (NASDAQ: BSFT), which software for telecom service providers to deliver voice and multimedia over IP-based networks, was a summer sleeper that exploded higher in November. BroadSoft sold 7.5 million shares at $9.00 per share in June and shares went as low as $7.34 when markets were soft in the summer. The closing bell price on December 30 was $24.08, giving the gains here close to 200% for 2010.

Camelot Information Systems Inc. (NYSE: CIS), which provides enterprise application services and financial industry IT services in China, is often considered an overlooked entrant in 2010.  It came public in the summer with a sale of about 13.3 million shares at $11.00 per share, at the low end of the expected range.  Its shares have traded in a range of $15.44 to $24.89 and the ADR closed at $23.88 on December 30.  With a market cap of $1.05 billion, it trades at just over 4-times expected 2011 revenues.

Fabrinet (NYSE: FN), an outsourced optical component manufacturer came public in the summer selling 8.5 million shares at a price of $10.00 per share.  It traded briefly as a busted deal with lows under $10.00 but it also traded as high as $22.74. The market cap is now $711 million.  Its $21.06 close of December 30 makes for legitimate gains here of more than 100%.  Valuations are still reasonable and it appears to trade for about 1-times (or so) our revenue expectations in the calendar year of 2011 despite a June fiscal year-end.

hiSoft Technology International Ltd. (NASDAQ: HSFT), the Chinese rather than Indian outsourced IT and R&D outfit, has been impressive.  Its IPO caught the end of the summer sell-off almost at the lowest point and sold 7.4 million shares at $10.00 per share.  Shares screamed higher in August and it has had a $25 to $30+ trading range for most of the last 3 months.  The market cap of $865 million implies about 4.7-times expected 2011 revenues.  The gains here represent right at 200% based on the $30.50 close on December 30.

JinkoSolar Holding Co., Ltd. (NYSE: JKS) has been a hot IPO that also saw an after-burner flame-out take hold of the Chinese solar player ADR.  It sold 5.8 million shares at $11.00 per share in May and it dipped under $10.00 on multiple occasions in the summer.  This went north of $40 briefly (300% gains) but has only been above $30 a few trading sessions. Shares closed at $20.43 on December 30, making the gains here still about 100% despite having pulled back by almost half.  Its market cap sits at $444 million.

MakeMyTrip Limited (NASDAQ: MMYT) is hard to tally as a top IPO currently despite what the math says from the IPO price.  It has almost been a bit forgotten about compared to its post-IPO hype.  The Indian travel destination provider has priced at $14.00 in August and its real lows were $20.75.  Shares went north of $40.00 and the December 30 close was $27.85.  That is a double from the IPO, but up “only 30% or so from the real post-IPO trading.”  The market cap is now $714 million and it remains one of the few new Indian investments for Americans.

Qlik Technologies, Inc. (NASDAQ: QLIK), with its software solutions for data analysis and reporting solutions, is one of the newcomers in business intelligence software. It sold some 11.2 million shares at $10.00 per share in the summer and its shares did trade as low as about $14.00 in August before peaking north of $29.00 this month.  The December 30 close of $25.91 gives this more than a double from the IPO price or about 85% if you had the insight to snag this after the IPO.  The market cap is now $2 billion, but it trades at close to 7.5-times expected 2011 revenues.

Realpage Inc. (NASDAQ: RP), with its multifamily property management software, came public in August and caught a major run-up in the market for an exponential gain.  RealPage sold 12.3 million shares at $11.00 per share in August before running to north of $30.00 in November and December.  Shares closed at $29.63 on December 30 and the run-up here has just been steady and consistent.  With near-200% gains, its market cap is $1.99 billion, which is just under 8-times expected revenues for 2011.

Vera Bradley, Inc. (NASDAQ: VRA), the ladies accessories brand, priced 11 million shares at $16.00 in October. Its post-IPO low is $22.00 and shares did rise steadily and they hit a high of $41.01 before settling down of late.  The December 30 close of $33.99 makes for gains of 50% from the opening day lows and makes for a double from the IPO price.  The market cap is now about $1.4 billion and it trades at close to 3.4-times next year’s projected revenues.

Youku.com Inc. (NYSE: YOKU) is often touted as “The Youtube of China” but its losses and a ‘reality check’ from the media brought this back to some sort of normalcy.  Its December 2010 IPO went off at $12.80 per share for 15.8 million shares.  The December 30 close of $35.03 made for close to 200% returns IF you got IPO shares and held.  Otherwise, the opening bell print on December 8 was $27.00 per share.  Be advised, shares hit $50.00 on just December 10 before that media ‘reality check.’  Being a “top IPO of 2010” has some caveats here, and it is hard to get excited about its $3.6 billion market cap before the quiet period is even up.

What we left off was the waves of reverse mergers which came out of China. That is a different story…

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JON C. OGG