Tom Taulli is the author of various books on finance, including The Complete M&A Handbook (Random House) and Investing in IPO's (Bloomberg Press). In addition to his writing, Mr. Taulli has appeared on high-profile television venues such as CNN, CNBC and Bloomberg TV, and has been quoted in the various print media sources such as the Wall Street Journal, USA Today and LA Times.
IronPlanet, which operates an online marketplace for used construction and agricultural equipment, has been growing nicely over the past year. Revenues spiked 56% to $42.7 million and profits went from $1.9 million to $12.9 million.
Now, IronPlanet is taking things to the next level -- that is, filing for an IPO. The company expects to raise $92 million.
The past couple years have been brutal for some retail chains because of disruptive changes in technology. For example, this week Blockbuster (BBI) said it may file for bankruptcy. With huge debts and lagging sales, the company continues to lose marketshare to online alternatives like Netflix (NFLX).
There's also the case with H&R Block (HRB). The company is feeling the pressure against rivals like Intuit's (INTU) TurboTax, which continues to grow its online business.
With 522 million subscribers, China Mobile (CHL) is a colossus. According to the latest quarterly report, the company saw a 14.2% increase in its customer base, which used up 2.9 trillion minutes of voice usage.
The bottom-line was somewhat tepid as earnings increased 3.3% to $16.87 billion. Then again, China Mobile has had to make substantial capital investments to add new services. At the same time, the company is also feeling the competitive pressures from other major operators like China Telecom (CHA) and China Unicom (CHU).
VirnetX (VHC) focuses on commercializing its patent portfolio for real-time communications over the Net. The company is fairly small, with a mere $20,672 in revenues in the latest quarter. There are only 12 employees.
When it comes to electronic payments, China is still in the early stages. But in light of its huge population and fast-growing economy, the potential is enormous.
So, eBay's (EBAY) PayPal is getting aggressive in the country. For example, the company has struck a partnership deal with China UnionPay, which is the biggest electronic payments provider in China.
This week, telecom software provider, BroadSoft, filed for an IPO to raise $103.5 million. And the company will certainly need the capital. After all, competitors include biggies like Cisco (CSCO) and Huawei Technologies.
Founded more than ten years ago, BroadSoft is now a top-provider of Voice over IP (VoIP) applications for residential and business customers. Services include things like: private branch exchanges (PBXs), video calling, unified communications and converged mobile and fixed-line services.
Financial Engines, which provides online financial planning services, did something that hasn't been done this year; that is, price its IPO above the range. The company issued 10.6 million shares at $12 million. As for the price range, it was $9 to $11.
It's another sign that IPOs are warming up again -- at least for strong companies.
Over the years, Warren Buffett has focused his investments on mature categories, like railroads and utilities. While the returns are not high, the risk levels are much lower and it is easier to put large amounts of money to work.
But this does not mean Buffett has given up on growth plays. Just look at his investment in BYD, which is a Chinese company that builds cars and batteries. And yes, the company is growing like a weed.
Over the past year, PepsiCo (PEP) has been making the right moves. Perhaps one of the biggest was to buy up its key bottlers in the U.S. so as to improve cost efficiencies, as well as to broaden the product mix. In fact, Coca-Cola (KO) also realized the logic of this strategy and is doing the same thing.
And keeping up the momentum, PepsiCo did something else to make shareholders happy. Monday, the company announced it has approved a 7% increase in its dividend and there a whopping $15 billion authorization to repurchase up to $15 billion in shares of the company.
In my columns, I usually focus on new technologies that can help boost your business. But sometimes the old-fashioned approaches can still work quite well.
Yes, this includes mailers.
OK, it's true that people still throw away much of their mail (and, it even looks like the U.S. Postal Service will cut back on its deliveries). But if a mailer is done right, you can get a nice return on your investment.
All in all, it's been a tough IPO market this year. Even top companies have had trouble pulling off their offerings.
But recently, there have been some signs that things are improving. Just look at today's public offering of Sensata Technologies (ST). The company issued 31.6 million shares at $18 (the price range was $18-$20). So far in today's trading, the stock is up 3.4%.
In early 2008, online marketing firm Eyeblaster filed for an IPO. Of course, it was horrible timing as the financial system melted down and the U.S. economy plunged into a major recession.
True, the economic system has since stabilized. But is the market ready for an Eyeblaster IPO?
Well, the company has refiled for an offering, hoping to raise $115 million.
In terms of subscribers, China Mobile (CHL) is the largest mobile carrier (the base is more than 500 million). But of course, the company wants to become even bigger.
And one of the most promising markets is mobile payment. However, it can be difficult to pull this off. So, China Mobile has agreed to pay $5.83 billion for a 20% stake in Shanghai Pudong Development Bank. The transaction was priced at a 13% discount.
It seems that the media can only focus on bad news about the US economy.
Yet, there are clear signs of improvement, such as from scrappy entrepreneurs. Hey, just look at companies like Twitter, LinkedIn, Green Dot and of course, Facebook. Things can't be totally bad, right?
Well, according to a recent report from the Spectrem Group, the US actually saw a 16% rise in the number of millionaires last year -- to 7.8 million. True, this is in comparison to the 27% fall-off in 2008. But at least things are getting better (the all-time high was in 2007, when the number of millionaires reached 9.2 million).