Krispy Kreme leads IPOs since 2000
Doughnut chain up 545% since Nasdaq's all-time high
By Steve Gelsi, CBS.MarketWatch.com
Last Update: 12:20 PM ET March 10, 2003
NEW YORK (CBS.MW) -- Even with the Nasdaq down more than 75 percent from its all-time high three years ago today, some initial public offerings have shown an ability to prosper at a time of pain and suffering for the broader market.
No company bears this out more vividly than Krispy Kreme Doughnuts (KKD: news, chart, profile).
Shares of the Winston-Salem, N.C.-based company, riding profit growth and a jump in revenue on expansion of its chain of doughnut shops, have risen 545 percent over the last three years, thus qualifying as the best-performing IPO during that interval, according to data compiled by Dealogic.
A total of 524 IPOs have debuted on U.S. exchanges since the Nasdaq ($COMPQ: news, chart, profile) reached the storied height of 5,048 on March 10, 2000.
The Nasdaq is now trading below the 1,300 mark, feeling the effects of still more investor selling on Monday. See full story.
Krispy Kreme debuted at $21 per share on April 5, 2000, and has since seen its stock price rise like a yeast-filled loaf of bread.
The No. 2 slot for IPO performance since the height of the Nasdaq bubble goes to Coach Inc. (COH: news, chart, profile), maker of purses and accessories. Its stock has gained 356 percent.
Rounding out the top three, Apollo Group (APOL: news, chart, profile), parent of University of Phoenix Online (UOPX: news, chart, profile) and other higher-education programs, has chalked up a gain of 309 percent.
The worst IPO during the same period is Internet holding company Divine (DVINQ: news, chart, profile), which has lost 99.97 percent of its value since its debut. Not surprisingly, it's now a thinly traded bulletin-board stock.
Other crash-and-burn cases include Genuity (GENUQ: news, chart, profile), formerly a unit of GTE that's soon to be acquired by Level 3 Communications, and Metawave Communications (MTWVQ: news, chart, profile). Both have seen their share prices virtually eviscerated, down 99.88 percent.
On average, the 524 deals that have debuted since March 10, 2000 have returned a loss of 40.75 percent. A total of 124 deals were either even with or above their IPO prices as of Monday.
marketwatch.com |
