Does ING have the clout to keep ILIF above water??
The last two IPOs that ILIF took the lead on were AMRI and GAI.
AMRI priced at 20 opened at around 24 and has been trading for 4 months in that range. AMRI is a profitable company.
GAI which priced at 19 looks REAL bad... It opened at 20 and never looked back. It went straight down hill to $4 in 5 months and has traded between 4 and 7 for the last 8 months. Its an appliance and tool company, lol.
I know that the good underwriters like GS, Morgan Stanley, DLJ, even BBRS, maintain good aftermarkets. Its the INGs, BTABs, volpes, and relatively inactive underwriters that scare me.
ING may not have the clout to pull this off successfully. They may be a lot like BTAB.
Look at BTAB. Except for MKTW, all their recent offerings are in the hole:
AWEB, FCST, ABTL, NETO, PXCM...
Even TURF has lost its luster. BTAB led on TURF. TURF is now at $30!! only 8 above its IPO price.
Maybe we should judge these IPOs mainly by their underwriters and pass on anything offered by the light weights? |
