1) Three initial public offerings (IPOs) priced overnight, including one delayed from May. On the Big Board, software solutions company Arista Networks (ANET) priced 5.2 million shares at $43, well above the $36 to $40 range. They allow companies to optimize their data centers in the cloud.
On the NASDAQ, Radius Health, which is developing treatments to restore bone density, priced 6.5 million shares at $8, in line with its previously revised range. The company postponed its IPO in May and had planned to offer five million shares at $14 to $16. So they wanted to do a $75 million deal at the midpoint; now they are doing a $52 million deal at that level.
What was the issue? They are not profitable, and biotechs have not performed well.
So one prices above, the other well below after a lengthy delay. What's the takeaway? You had better be in a sector that is hot, and it helps to be profitable.
Finally, WL Ross Holding Corp. (WLRHU) priced 43.5 million shares at $10. This is a "blank check" company formed by Wilber Ross—literally, a blank check company. Ross, a billionaire investor in his own right, can invest in anything he wants to. So why invest in something where you don't even know what the principal is investing in? Because he is Wilbur Ross.
On March 12th, a $210 million IPO for Diamond Shipping (a tanker operator) was postponed. Wilbur Ross, who controlled the company, pulled the deal when he didn't like the pricing.
The Renaissance Capital IPO ETF is showing signs of life, up 5.6 from its low on May 9th. The S&P 500 is up 3.3 percent in that time period.
At that time, over half the IPOs priced this year were trading below their IPO price. Of the 117 IPOs this year, 44 or 37 percent are below their initial price.
--By CNBC's Bob Pisani