Rearview Mirror: Week Ending April 6th, 2014

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

Week Ending April 6th, 2014

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plica of the kneeI’ve been struggling in too-much-to-do land, and too-many-high-priorities.  My right knee gave out on me, such that I can’t do backstroke and butterfly, and don’t even think about breast stroke.  No sooner does my arm reach back to catch the water (in backstroke) than my knee experiences a sharp pain, stopping me dead in the water.  Literally.  If anyone else has experienced this—please let  me know.  Best I can tell, orthopedic surgeons have about 15-20 diagnoses in their repertoire.  If it isn’t one of those, you’re out of luck.

Currently, I’m pulling on a string from a “Swimmers Knee Injuries” article on Plica Syndrome, which has led me to University of Minnesota’s Steadman Clinic, back to MGH and a fellow named Matt Provencher and then to his PA, Tistia Gaston.

The Market/Earnings[1]

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

A tough week for tech stocks, which continues today.  Seems investors are not enamored of Facebook’s (FB:  Nasdaq) purchase of Oculus for $2b.  Oculus is the developer of the virtual reality headset.  Market seers are saying that the market is behaving like it wants to go down, with technology leading the way.  Time will tell.

And, yes, times have changed.  Newly appointed CEO of Mozilla stepped down just days after his appointment amid a brouhaha of his opposition to gay marriage.  My best advice:  Like it or not, it’s a fact of life.  Get over it.

IPO’s[2]

Click on the Company Name for the S-1 filing and the Company Symbol for the stock chart.

(9 IPO’s)

Nine IPO’s priced last week:[3]

Internet Enabled

GrubHub (GRUB:  Nasdaq) sold 7.4m shares at $26 per share, raising $192m at a valuation of $2b.  It closed the week at $34.  Nice valuation and gain for a food delivery service.

Cloud

Opower (OPWR:  Nasdaq) sold 6.1m shares at $19 per share raising $116m at a valuation of $902m.  The stock closed the week at $23 per share.  We are hoping that our new natural gas provider, a glommed together provider named Liberty Utilities, updates some of their software with Opower.  Thus far, we’ve been totally unimpressed.

Opower is a leading provider of cloud-based software to the $2.2 trillion utility industry. Utilities use our software platform to deliver key customer-facing applications that reduce energy demand and improve customer perception of the utility

Five9 (FIVN:  Nasdaq) sold 10m shares at $7 per share, raising $70m at a valuation of $322m.  The stock closed the week at $7.64.  “Five9 is a pioneer and leading provider of cloud software for contact centers.”

Education & China

Tarena International (TEDU:  Nasdaq), based in Beijing, sold 15.3m shares at $9 per share, raising $137.7m at a valuation of $442m.  The stock closed the week at $9.04 per share.

We are a leading provider of professional education services in China. Our core strength is in IT professional education services, where we are the largest provider in China with a market share of 8.3% as measured by revenues in 2013 according to IDC, a third-party research firm. Since our inception in 2002, we have trained over 130,000 students, cooperated with more than 500 universities and colleges and placed students with approximately 35,000 corporate employers in a variety of industries.

Media/Advertising

The Rubicon Project (RUBI:  Nasdaq), the name winner of the week, sold 6.8m shares at $15 per share, raising $102m at a valuation of $520m.  The stock closed the week at $19 per share.

 

We are a technology company on a mission to automate the buying and selling of advertising. Our Advertising Automation Cloud is a highly scalable software platform that powers and optimizes a leading marketplace for the real time trading of digital advertising between buyers and sellers.

Medical/Biotech

IMS Health (IMS:  NYSE) sold 65m shares at $20 per share, raising $1.3b at a valuation of $21.5b.  The stock closed the week at $23 per share.

IMS Health is a leading global information and technology services company providing clients in the healthcare industry with comprehensive solutions to measure and improve their performance. We have one of the largest and most comprehensive collections of healthcare information in the world, spanning sales, prescription and promotional data, medical claims, electronic medical records and social media. Our scaled and growing data set contains over 10 petabytes of unique data and over 500 million comprehensive, longitudinal, anonymous patient records (i.e., records that are linked over time for each anonymous individual across healthcare settings).  The Company is based in Danbury, CT

Corium International (CORI:  Nasdaq) sold 6.5m shares at $8 per share raising $52m at a valuation of $134m.  The stock closed the week at $7.95 per share.

We are a commercial stage biopharmaceutical company focused on the development, manufacture and commercialization of specialty pharmaceutical products that leverage our broad experience in transdermal and transmucosal delivery systems. Together with our partners, we have successfully developed six marketed products in the prescription drug and consumer markets, and we are the sole commercial supplier of each of those products for our marketing partners

Adieu

While there’s lots, lots more, it’s time to say goodbye.  This week we’re skipping M&A and Private Placements, areas that are near and dear to my heart.

Having not yet figured out how to add time and energy to the day, it’s time to go fetch my MRI’s in Exeter, NH and further prepare for my appointment with the IRS.

Please send me any comments or feedback.

Margaret Johns

Founder, BlueLake Partners, LLC

Affiliates:

Jan Robertson

SiVal Advisors, LLC

Susan Woods and Vlad Harris

Chartworth

———————-

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, 17 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, Mar 31 thru  Apr 4, 2014

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

[3] Company descriptions, when in quotes or indented are taken from the Company’s S-1 filings