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Backs and Groupon comes as a new report.
Finds it IPOs are coming off their biggest first quarter since 2007.
Joining me now.
For Lawrence Henry -- sac capital markets in accounting advisory leader for price Waterhouse Coopers which put out the report.
Thanks for joining us in studio today Henry -- good timing as well as we're waiting for the big guy FaceBook to issue.
You go on to the public markets next month but looking -- Personal highlights and -- an and the low lights media of the report they -- that.
Look at take a look at the first quarter results -- was really led by tech followed closely by industrial products as well as -- financial services.
If you take a look at what was really driving it in a couple things one you see that you know it's it's a strong pipeline -- diversification of the companies that are represented.
If you look at the act after market performance really over the last fifteen months.
You're seeing great great performance which bodes well as we fill the pipeline you're seeing more companies coming in pipelines to strong as it's ever been.
But winning each performance I mean we see names like annie's -- that bed organic foods maker came out last week another company called millennium.
They -- their stock prices almost literally doubled that very first day of the offering and then you start to see a lot more volatility Groupon another example.
High hopes and then you're seeing it not really -- bit you know a lot of the goals that investors are expecting out and it not even.
Being at its IPO price so how do you gauge and determine performance what sort of timeframe is the first day in the most important metric for the least.
Important metric -- what when they pops -- sort of interest pain but it's not what we look at.
They're not commenting specific -- companies but if you look at the trends you really -- -- companies that have a good story.
You know the investors understand where the cash flows are coming from the have a good management team they're getting -- fundamentals right they're not necessarily focused on.
Getting public but they're focused on being public.
Take a look at the companies that maybe didn't do so well getting prepared.
They're the ones that are getting punished by the market but again all you have to do is look at the after market performance collectively over the last fifteen months of the companies that went IPO.
So fifty and I think is a good fifteen months is a good -- is it is a good time frame to look and and judge yeah absolutely I mean if you look at these things just you know on a one day -- three days everybody gets excited about what's the one day -- what's the one -- pop.
It's got to be looking at the long term do they have a story and are they executing on the plan.
Let's talk about also.
You know a lot of questions about whether or not it makes a lot of sense to go public and mean right now -- -- seeing a lot of traction building up for Facebook's IPO that's coming in May.
And then after that and there's a rationale -- -- -- in the without this this FaceBook IPO within behind as is the excitement in alert still exist.
In the same way that we've seen in this -- up before -- -- Yeah I mean not commented specifically on FaceBook we take a look whenever you have a big household name it goes out.
-- the overall sector in this case -- which will be near and dear to your heart tech is gonna have some buoyancy of the overall markets can have some buoyancy.
It's one of the reasons we don't look at dollar -- Valium as much because dollar -- from your first quarter last year to this year was down.
But if you take a look at the number by PS number of issues the number of issuers out there that tells a great store and can you look at the diversity diversity of the sectors are being represented here.
It just tells him wide ranging story about your people intrastate and using the capital markets.
Name maker grade point is we focus so much on technology but annie's and eight is a good another good example of -- sort of and less sort of a splashy company it's an -- food maker.
That's coming out and becoming -- have public company and it attracting a lot of investments.
And move -- before before we let you go -- you know I'd like to ask you.
Are you seeing any -- and.
-- a bubble.
Does this is a great question if you take a look at the difference between 2000 vs what we're seeing today.
There are looking at companies that are again they're giving the fundamentals right investors understand where the cash flows are.
So when we're working with clients for -- don't rush to just be public be prepared to that you can hit the windows the right way.
But the other thing that we're seeing is -- again companies that.
Are rushing to be public in don't know how to be public yet are just you know in some cases -- -- up in them in the market is punishing them.
In again date back to 2000 we didn't see that.
Yes line I don't any names I think group -- could certainly -- -- category Henry and lack of price Waterhouse Coopers and -- new study on IKEA us.
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