Investing Blog

What is a IPO? A Initial public offering (IPO) is when a company goes public to raise funds by letting the public investors invest in their company. You are able to find these companies listed on the New York Stock Exchange, NASDAQ, and other public exchanges.

Years ago people would wait years upon years to see the potential growth of a company after going public, but times have changed as companies like Google, Baidu, and many others change the minds of many.

Vonage is going to be offering a IPO with a price range between 16 and 18, but they are warning that profits will not be seen for awhile. Vonage is Internet telephony provider is looking to raise around $500 million. This would be a hit and miss deal and should be a stock worth the wait to see what type of profits it brings in the future. Otherwise it would be a gamble and I am sure many are going to roll the dice on Vonage.

Finding a safe IPO comes easy with the companies listed below since they have been reporting profits within their first year of going public. Companies like International Securities Exchange (ISE) has been reporting higher profits from the trading around the world and others have been getting a helpful hand from the oil price.

GFI Group (GFIG) went public 1-26-05 and already they have been reporting earnings of $11.4 million ahead of analyst expectations. GFI started at a price of 21 and they have more then doubled to 56.

W&T Offshore (WTI) was another company who went public early of 2005 and they have been reporting high earnings of $50.9 million. W&T Offshore oil and natural gas exploration in the Gulf of Mexico has been getting help from the recent oil prices (73) and they started with a low price of 19 and this jumped to 44.

This train is roaring down the tracks and its revenue is rolling along with this company. FreightCar America (RAIL) first quarter revenue has soared to $21.4 million and it is showing in the price of the stock as it has tripled to 66.

Finally I would like to mention a tech IPO Baidu.com (BIDU) one of China’s top search engines and it is growing at a rapid pace and the expectation is there by many. Baidu.com walked on the IPO charts in August of 2005 and it was automatically a hit as it moved from its 27 price to over 122 and now it has settled around 58. During its time in 2005 Baidu.com reported revenue $14.2 million a 168 percent increase. Baidu.com has many watchful eyes as they watch this company from China open the path for companies like Alibaba and many others.

Stocks BIDU, IPO