10 Negative Performing Stock IPOs of the Past Year

Following is information on the 10 worst-performing IPOs of the past year:

  1. Lizhan Environmental Corp. (NASDAQ:LZEN): This company had its IPO on 11/18/10, and its offer price was $4.00 per share. The shares most recently traded at $2.01, for a return of -50%. The company has been public for 6.5 months. About the company:  Lizhan Environmental Corp. manufactures, distributes, and markets synthetic leather and other fabrics from recycled leather waste, among other materials.  The Company sells its products to furniture, automotive upholstery and garment manufacturers, as well as fabric distributors.
  2. Global Education & Technology Group Limited (NASDAQ:GEDU): This company had its IPO on 10/07/10, and its offer price was $10.50 per share. The shares most recently traded at $5.25, for a return of -50%. The company has been public for 7.9 months. About the company:  Global Education & Technology Group Ltd. provides educational courses and related services in China with a focus on foreign language training and test preparation.  The Company operates learning centers throughout China.
  3. FriendFinder Networks (FFN): This company had its IPO on 5/10/11, and its offer price was $10.00 per share. The shares most recently traded at $4.99, for a return of -50%. The company has been public for .8 months. About the company:  FriendFinder is an Internet and technology company providing services in social networking and Web-based video sharing.
  4. China Ming Yang Wind Power (NYSE:MY): This company had its IPO on 9/30/10, and its offer price was $14.00 per share. The shares most recently traded at $6.89, for a return of -51%. The company has been public for 8.1 months. About the company:  China Ming Yang Wind Power Group Limited designs, manufactures, sells and services wind turbines.  The Company’s client base are Chinese state owned power producers.
  5. SemiLEDs Corporation (NASDAQ:LEDS): This company had its IPO on 12/08/10, and its offer price was $17.00 per share. The shares most recently traded at $8.27, for a return of -51%. The company has been public for 5.8 months. About the company:  SemiLEDs Corp. develops, manufactures, and sells light emitting diode chips and LED components.  The Company sells blue, green, ultraviolet LED chips under its own brand primarily to customers in China, Taiwan and other parts of Asia.
  6. Kips Bay Medical (KIPS): This company had its IPO on 2/10/11, and its offer price was $8.00 per share. The shares most recently traded at $3.86, for a return of -52%. The company has been public for 3.7 months. About the company:  Kips Bay Medical, Inc. is a medical device company focused on developing, manufacturing and commercializing its external saphenous vein support technology for use in coronary artery bypass grafting surgery.
  7. SMART Technologies (NASDAQ:SMT): This company had its IPO on 7/14/10, and its offer price was $17.00 per share. The shares most recently traded at $7.10, for a return of -58%. The company has been public for 10.7 months. About the company:  SMART Technologies, Inc. designs, develops and sells interactive technology solutions.  The Company produces interactive white boards where the user can access the Internet, control computer applications, write in digital ink and save and share work.
  8. China Xiniya Fashion (NYSE:XNY): This company had its IPO on 11/22/10, and its offer price was $11.00 per share. The shares most recently traded at $3.65, for a return of -67%. The company has been public for 6.3 months. About the company:  China Xiniya Fashion Limited designs and manufactures men’s business casual and business formal apparel and accessories.  The Company’s products are sold in retail outlets.
  9. Mecox Lane Ltd. (NASDAQ:MCOX): This company had its IPO on 10/25/10, and its offer price was $11.00 per share. The shares most recently traded at $3.35, for a return of -70%. The company has been public for 7.3 months. About the company:  Mecox Lane Ltd. operates an Internet commerce website.  The Company retails men’s, women’s, and children’s apparel and household accessories under its own brand and under third party labels.
  10. China Shengda Packaging Group (NASDAQ:CPGI): This company had its IPO on 12/09/10, and its offer price was $4.00 per share. The shares most recently traded at $1.16, for a return of -71%. The company has been public for 5.8 months. About the company:  China Shengda Packaging Group manufactures packaging products.  The Company produces corrugated paperboards and flexo-printed and color-printed paper cartons.  China Shengda serves the food, beverage, cigaratte, household appliances, consumer electronics, pharmaceuticals, chemicals, and machinery manufacturing industries, and other consumer or industrial sectors.

(Note: Data are sourced from here, and are assumed to be accurate.)

Some interesting data for the statistically inclined about the universe of IPOs from the past year: There have been 172 IPOs over the past 12 months, with a median return of 11%, an average return of 22%, a skewness of 2.386, and a kurtosis of 9.249.  As a comparison, the S&P 500 has returned 18.6% over the past year.  This means that, while the average IPO has out-performed the S&P 500, the median IPO, which is more representative of the group (since the group’s returns are not normally distributed), has underperformed the broader market.  For all the risk associated with investing in IPOs, returns have been subpar.

Fresh Off the Press: Wall St. Cheat Sheet’s newest Feature Trades of the Month!