Rearview Mirror: Week Ending June 15, 2014

Rearview Mirror

For the Week Ending June 15, 2014

 

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Bridal Veil Spirea
Bridal Veil Spirea

The spring may have provided lousy weather, but it’s working wonders in the garden, with some of the most beautiful flowerings we’ve ever had.  Everything is blooming, with the most beautiful roses we’ve seen to-date.   Tiger and day lilies are next in the cue.

Meanwhile, another week, another surgery. Left Meniscus cleaned up this Thursday, following the May 1st surgery for the right meniscus. There’s a reason that the medical industry is in crisis—too many people like me going in for surgery. Even if it is a simple day surgery, three to four hour ordeal from entering through the front door to the exit. Four weeks of physical therapy, two times per week.

There is plenty of room for increasing the efficiencies in the system, particularly with regard to physical therapy, but that would require that the patient be more self reliant and take on significantly more responsibility for their well being.

This week, I have two pointers for you in the “How to Live Better with Apps”world.

1)    I’ve been using Glympse (see Private Placements in our next issue) to let people know where I am when I’m en route. When I was going to Connecticut, I “glympsed”my hosts, and they were able to see our exact position as we were going down I-290 to the Mass Pike to I-84 to I-91 to I-95. In another case, when I was to meet someone for dinner in Charlestown and I was running late, I ‘glympsed’them and they could see exactly when I would arrive at the restaurant.

2)    Xpense Track and Mileage Tracker by Silverware Software will track your mileage—automatically—as long as you have purchased the GPS feature. Click “Start”and then “Stop”when you’ve reached your destination. You still have to input, for the IRS, the purpose, but it’s a bit less painful and more automatic. Financial software, no matter how good, is never intuitive and requires help, so the company supplies plenty of how to videos on its website.

Earnings and the Market[1a]

(Please click on company name for the earnings announcement and the company’s symbol for the stock chart.)

Lots of concern in the world. Iraq is falling apart on the departure of U.S. troops. Hello? Why is anyone surprised? Gas prices are on their way backup. I’m holding onto my Shell Rewards card to get the 3 cents discount at my local pump. Even with the Prius, it’s helpful. 30 cents on a fill up! And then Eric Cantor, a conservative, lost his seat in the House of Representatives to someone more conservative. I haven’t dug into it, but I’ve got to believe it’s the law of small numbers. How votes in these off-election primaries, except the adamant and determined.

Meanwhile, New Hampshire is said to have a carpet bagger, Walt Havenstein, running for the Republican nomination for Governor. Turns out, he headed up Sanders in Nashua, for Lockheed, before it was sold to BAE. Sanders was sold to BAE, and Havenstein ended up in Maryland, and then went over to SAIC. Musical chairs. It seems he may have a legitimate claim to New Hampshire residency, as he owns a $2.2m house in Alton, NH, on Lake Winnipesaukee, and registers all his vehicles here. Complicated mathematics. Although, I gotta say, a vacation house is not quite a full time residency, and does require some gymnastics to make it so. He’s not the first to claim New Hampshire residency to avoid the full blow of another state’s income taxes.

The DJIA hit a top at 16945 on June 10th, when the S&P 500 hit a top of 1950, and now we’re giving back. The DJIA is around 16,800 and the S&P 500 is trading up from 1930. The Lord giveth and he taketh.

The major news on the earnings front was Intel (INTC: Nasdaq) raising its second-quarter revenue outlook, based on improving PC demand. They’re now forecasting $13.7b vs. $13b. Maybe the economy is improving? Or maybe it’s simply time to replace all those rotting old PC’s running Windows XP? Day late, dollar short. This is big news.

ULTA Salon and Cosmetics & Fragrance (ULTA: Nasdaq) had earnings of $0.77, up from $0.65 per share. That’s real growth, folks. Revenue grew to $713.8m from $582.7m. Looks like a great place to be: cosmetics superstore. ULTA must be giving Sephora, which is owned by Louis Vuitton, some real competition.

Lots of yawning about the trading environment, which is being characterized as a “snoozefest.”The S&P 500 has gone 38 days without a one percent move. Impressive.

IPOs[1b]

(3 IPO’s)

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

Aspen Aerogels (ASPN: NYSE) sold 7.5m shares at $11.00 per share, raising $82.50m at a valuation of approximately $153m[2]. The stock closed the week at $10.75 per share.

Our technologically advanced products are targeted at the estimated $2.8 billion annual global market for energy infrastructure insulation materials. Our aerogel insulation has undergone rigorous technical validation and is used by many of the world’s largest oil producers and the owners and operators of refineries, petrochemical plants, liquefied natural gas, or LNG, facilities and power generating assets, such as ExxonMobil, Formosa Petrochemical, Pemex Gas and NextEra Energy Resources. Our products replace traditional insulation in existing facilities during regular maintenance, upgrades and capacity expansions. In addition, we are increasingly being specified for use in new-build energy infrastructure facilities.[3]

MobileIron (MOBL: Nasdaq) sold 11.1m shares at $9.00 per share, raising $99.9m at a valuation of $671m. The stock closed the week at $10.30 per share.

We invented a purpose-built mobile IT platform for enterprises to secure and manage mobile applications, content and devices while providing their employees with device choice, privacy and a native user experience. Customers use our platform as the technology foundation on their journey to become “Mobile First”organizations, embracing mobility as a primary computing platform for their employees.[4]

Chinese career website, Zhaopin (ZPIN: Nasdaq), sold 5.6m shares at $13.50 per share, at a valuation of $1.35b. The stock closed the week at $15.34 per share.

We are a leading career platform in China, focusing on connecting users with relevant job opportunities throughout their career life cycle. Our zhaopin.com website is the most popular career-focused website in China as measured by average daily unique visitors in each month of 2013, according to the iResearch Public Data. We are the second largest online recruitment services provider as measured by revenues in 2013, according to the iResearch Public Data. Our over 77 million registered users include diverse and educated job seekers who are at various stages of their careers and are in demand by employers as a result of the general shortage of skilled and educated workers in China.[5]

That’s it for now.

 

All the best,

Margaret Johns

Founder, BlueLake Partners, LLC

SiVal_LogoJan Robertson

SiVal Advisors, LLC

 

 

 

 

Bic Stevens

Stevens Capital Advisors

 

Chartworth2Susan Woods and Vlad Harris

Chartworth, LLC

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.

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.

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

[1a] TechCrunch, company websites, WSJ.

[1b] Renaissance Capital, SEC Filings

[1] WSJ Moneybeat June 9 – 13, 2014

[2] See page 54 of the prospectus.

[3] Company S-1

[4] Company S-1

[5] Company S-1