Rearview Mirror – Part I: Earnings & IPOs

Rearview Mirror —Part I

Earnings, IPO’s, M&A and Private Placements

Week Ending April 18, 2014

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Source:  bostinno.streetwise.co
Source: bostinno.streetwise.co

It was a short week, with the primary focus being Easter weekend and the Boston Marathon.  We are creating Rearview Mirror Part 1—about earnings, the market and IPOs, and Rearview Mirror Part II—which is about M&A and private placements.

Today is Marathon Monday, and we’re off to Mile 13 in Wellesley Center to cheer on Mei Zhang, CEO of WildChina a premier Chinese adventure travel company, who travelled to Boston from Beijing to run in the 118th BAA Boston Marathon.

The Market/Earnings[1]

Click on the Company Name for the earnings announcement, and the Company Symbol for the stock chart

Lots of news, but little to excite.  In the way of earnings:  Intel, Google, IBM, Johnson & Johnson, Coca-Cola, American Express, General Electric and PepsiCo.

The tech heavy Nasdaq pulled back on Monday, but came back on “Turnaround Tuesday.”  The Composite was within a few points of entering correction territory—Wall Street for a drop of 10 percent from a recent high.  It is down a bit over seven percent from last month’s 14 year high.

The consensus on IBM is that they have to start showing some growth if the stock is to be interesting.  Improving margins only go so far.

SAP’s (SAP:  NYSE) profit grew due to demand for Internet-based applications.  Non-IFRS cloud billings increased 36 percent, and annual cloud revenue is 1.1b Euros.

IPO’s[2]

(5 IPO’s)

China

Weibo (WB:  Nasdaq) sold 16.8m shares at $17 per share, raising $285m at a valuation of $3.39b.  Weibo is the leading social media platform in China, designed with a “mobile first”perspective.  The stock closed the week at $20.24 per share.

 

Leju Holdings  (LEJU:  NYSE) sold 10m shares at $10 per share raising $100m at a valuation of   $1.32b.  The stock closed the week at $11.86 per share.  Leju Holdings is a real estate services provider in China, offering real estate e-commerce, online advertising and online listing services through its online platform.

Internet/Travel

Sabre (SABR:  Nasdaq) sold 39.2m shares at $16 per share, raising $627m at a valuation of $3.92b.  The stock closed the week at $16.50 per share.  Sabre calls itself a “leading technology solutions provider to the global travel and tourism industry.”  As you may recollect, Sabre was a spinoff of American Airlines, and is also the owner of Travelocity.

 

Retailing

Sportsmans Warehouse (SPWH:  Nasdaq) sold 12.5m shares at $9.50 per share raising $119m at a valuation of $392m.  The stock closed the week at $9.75 per share.  A third of the shares were sold by a selling stockholder, which is the definition of a bull market IPO.  Sportsman’s Warehouse is an outdoors sporting goods retailer focused on the “seasoned”outdoor veteran.  The Company is based in Utah, with stores in 18 Western states and Alaska, which would explain why I’ve never heard of them.

Biotech

Vital Therapies (VTL:  Nasdaq) sold 4.5m shares at $12 per share, raising $54m at a valuation of $253m.  Vital Therapies describes itself as:

A biotherapeutic company focused on developing a cell-based therapy targeting the treatment of all forms of acute liver failure. Our product candidate, the ELAD System, is a human cell-based bio-artificial liver support system that operates outside the body, or extracorporeal, and is designed to allow the patient’s own liver to regenerate to a healthy state, or to stabilize the patient until transplant.

The stock closed the week at $12 per share

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And now to drive down to the Marathon.

Margaret Johns

Founder, BlueLake Partners, LLC

 

Affiliates:

Jan Robertson
SiVal Advisors, LLC

Susan Woods and Vlad Harris
Chartworth

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Margaret Johns is the Founder and Chairman of BlueLake Partners, a boutique M&A investment bank based in the Greater Boston Area.  Prior to founding BlueLake she was an employee founder and Managing Director at Needham & Company where she worked in Corporate Finance in New York City and headed up its Boston office.  She now lives in Londonderry, New Hampshire with her husband, 16 year old step-daughter and three pugs.  When she’s not working with clients, FINRA or writing blogs she competes on the Granite State Penguins Masters Swim Team, skis, rides her bike or is out walking her pugs.

Content researched, edited and reviewed on a best efforts basis.

We make no claim to being comprehensive in our review, as the contents are companies and topics we, ourselves, find of interest.

This newsletter is currently being proofed by Dave Henshaw, which is much appreciated. Dave is my USMS swimming lane mate, and Granite State Penguin team-mate.  He is retired from MIT, where he used to produce and proof their annual financial report.  Exactly what we need.

[1] WSJ Moneybeat, Apr 14-18, 2014

[2] Certain information from Renaissance Capital, in addition to the SEC, nasdaq.com, and other sources.