Also in this playlist...
This transcript is automatically generated
Our lists out to talk about parents mothers here Sandra because he didn't do so well -- your NCAA brackets a sermon last night -- those -- -- -- from what I'm told there's even some today.
We have back Kathy Smith Renaissance capital co-founder.
Training expert on IPOs to break down her IPO bracket so.
-- -- -- -- Thanks gifted basketball -- cannot go wrong this week because all the Wall Street people be saying all you have a note about the brackets will be check -- out -- go get -- -- in the tournament but.
There have been there's enough to make -- alleviate if you want to use a basketball term from these IPOs this week with this he wouldn't count pretty.
But this certainly is and with a lot of slam dunk IPO return but also very good we felt we should do IPO met this.
And also to have our analyst at Renaissance concentrate.
What is happening with the active market instead of watching all that basketball so we have an IPO madness -- -- that contests.
I have the bracket up here from Bob this company's that you sent out.
And as usual with initial public -- -- the average person watching at -- may not.
Recognize all the names.
Censure I think today when troops say for example on the right side of the bracket there -- -- software.
But some of these other changes -- to -- to get the DC themes especially the ones that are performing.
Are the things coming through that they'd say -- okay this surprised me or what do you make of the the group of IPOs.
Well I think that -- now the PE backed IPOs have treated very well all of those on our our list which is posted on our Renaissance capital dot com website right.
In the PE bracket.
Have performed about 50% plus since their IPO so that is so very positive for that group of -- I think settles into started to say that you know to get signed with a chip -- issues is -- is example of their other.
When you see them open as well as they do because people started to question the validity of the rally and what comes next and what have you.
-- true do you -- the the IPO market really really strengthening now and does that tell us something about the future.
BI PO market is strengthening we measure that for example so far this year.
The average IPO has risen 17%.
Right which is quite good that's from the IPO price and then if you look at post IPO returns we.
Run an index that measures that performance it's the -- Renaissance IPO index.
That index is up more than the S&P 500 this year -- our own mutual fund which is an actively managed funds of recently public companies.
Is up almost 18%.
You mentioned IPO price how important.
Not only is that but has that become.
Because when you mention -- I thought immediately -- FaceBook SA -- have things changed since I mean it was a mess obviously but has sub.
The process of bringing these companies public can change dramatically changed at all since FaceBook and if so how.
It it has and I think even leading up to Facebook's and so eight the IPO market has been working to find a clearing price where.
Companies realize investors must make positive returns beyond the first day.
And so FaceBook was sort of the Donnybrook I would say where investors just it was such a flop that every IPO since then it was discounted enough to meet the kind of return investors want.
So we ended up having well of kind of tumultuous year in 2012.
The discounts that we -- set the stage for some very good returns that -- seeing now.
Speaking of which I've restarted with -- yet.
The play on the basketball tournament with your bracket now if you wanna talk about the quote unquote top seeds for individual companies and how they look since they went public we have a list of that as well -- the companies individually that have really done well so.
That's one that's up 70%.
I mean you look at these companies down the list -- 61506058%.
Since their IPO this 3-D -- company right at the top so I mean that's an interest in business in and of itself so.
More more those companies I'm sure coming public but what's what's leading to the strong performance life.
Think -- -- group that's pretty incredible to see that kind of performance and we're not even done the month of march.
And they strike is that just came out.
Three of those IPOs on that list not X one but the other three are all PE backed companies that had some growth associated with it right and -- priced well and so they've traded up.
So I would say that it's when they're priced fairly well I think investors really are looking for.
Established company sizable companies with growth.
And if they're not sizable least and its technology area -- software enterprise software it's been extremely hot that relates to the deals and opened today.
Even so -- looking for growth or.
In some cases it's been the key that companies that have come to market a decent valuation.
-- are those the you -- in a press software and I think I mentioned pretty printing -- mean what are the areas that going in breast this year next year that -- most excited about in terms of new companies coming public.
Well once we see it -- things that we see continuing -- say housing related seemed to.
And we've had good performance there and then coming up we see Taylor Morrison on the calendar and Mason -- doors so we think the home they turn around and could be home.
Construction business is -- -- because we've seen that a lot of the macro statistics over the comes into the individual companies as well thank you happy.
And candidacy of Kathy Smith -- -- from Renaissance announced separate it's a fantastic stuff.
On the the IPO market as we get closer to the --
Filter by section