It was a strong quantity of IPOs that came to market in the month of May as 19 deals priced–the most in a single month thus far in 2015. The 2015 IPO numbers continue to fall behind 2014 as in comparison to last year—in May 2014 a total of 20 IPOs priced. There have been a total of 64 deals that have priced thus far in 2015 as compared to 108 at this same point a year ago.
This post will allow us to post our results and emphasize the value of IPOBoutique’s senior managing partner Scott Sweet’s ratings. You can check out our entire track record at this link.
Here is a recap of our past performances:
Five-Rating
We consider these IPOs to be the best of the best. In our nine years of keeping a track-record we have given just 14 ‘five-ratings’ and all 14 have hit their respective targets. However, in May 2015, we did not give a ‘five’ rating.
Four-Rating
We consider these IPOs to be very strong buys and we anticipate 1-to-2 points of premium above the offering price at first trade. In May 2015, we dished out a total of five, ‘four-ratings’. The most lucrative ‘four-rated’ deal at first trade was Shopify (NYSE: SHOP) which opened $11.00 higher than its $17.00 offering price. Also faring well in May were Bojangles (Nasdaq: BOJA) and EQT GP Holdings, LP (NYSE: EQGP) deal which opened $7.55 and $5.00 above their offering prices, respectively. Other four rated deals this past month were Black Knight Financial Services (NYSE: BKFS) and AdaptImmune Therapeutics (Nasdaq: ADAP). In May 2015, the average return of our ‘four-rated’ deals was $5.51. To this point in 2015 we have rated a total of 12 deals with a ‘four-rating’ and the average opening above the offering price is $10.03. In 2014, we rated 42 IPOs with a ‘four’ rating and these deals produced an average of $8.73 above the IPO price at first trade.
Three-Rating
We consider these IPOs to be moderate buys and we anticipate 1/2 to 1 point premium or more likely in the cases of these new issues. This past month five deals debuted that we rated as a ‘three’ with an average rate of return of $0.84 above the offering price at first trade. The best of the bunch was Press Ganey Holdings (NYSE: PGND) which priced above range and opened with a $2.67 premium above the IPO price. Tallgrass Energy GP, LP (NYSE: TEGP) fared above average for the month of May with a $1.90 premium above its offering price. Other three rated deals for the month of May include HTG Molecular Diagnostics (Nasdaq: HTGM), Arcadia Biosciences (Nasdaq: RKDA) and Black Stone Minerals (NYSE: BSM). There have now been 29 IPOs that IPOBoutique has rated as a ‘3’ this year with the average return above the offering price at first trade being $2.49. We are still ahead of our 2014 average by more than 50-cents. In 2014, we rated 95 IPOs that came to market with a ‘three’ rating and the average gain above the IPO price at first trade was $1.95.
Two-Rating
We consider these IPOs to be “neutral” and thus do not have a particular point threshold to hit in order for us to deem it as ‘hitting its target’. We gave nine deals a ‘two-rating’ and eight of the nine deals either opened flat or below the offering price. Two of the deals opened at least $1.00 in the red. The average first trade came $0.43 below the offering price. So far in 2015, IPO Boutique has rated a total of 30 deals with a ‘two’ rating and those deals have returned an average of $0.05 below the offering price at first trade. In 2014, we rated a total of 124 deals a ‘two-rating’ and the average gain above the IPO price at first trade for the 124 deals was $0.36.
One-Rating
We advise our subscribers to avoid these IPOs as we consider them to be risky. In our nine years of keeping a track-record we have given just 49 ‘one’ ratings. In May, we did not give a ‘one’ rating.
IPOBoutique.Com provides comprehensive research, ratings and daily advisories on new issues hitting the IPO market. To subscribe to IPOBoutique’s service: click here.
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