3 Recent IPOs Performing Poorly

Three recent IPOs have performed poorly.  Freescale (NYSE:FSL) priced its IPO at $18, below its expected range of $22 to $24.  Spirit Airlines (NASDAQ:SAVE) and Lone Pine Resources (LPR) also performed poorly.

Investors are concerned about Freescale’s large debt burden: $7.6 billion plus capital lease burdens.  The IPO was meant to relieve some of that debt burden, not provide funds to grow the business.  Skeptics see that is a poor basis on which to float shares on the public markets.

About the companies:

  • Freescale Semiconductor, Inc. (NYSE:FSL): Freescale is the global leader in embedded processing solutions, advancing the automotive, consumer, industrial and networking markets.  From microprocessors and microcontrollers to sensors, analog ICs and connectivity–our technologies are the foundation to the innovations that make our world greener, safer, healthier and more connected. Competitors to Watch: Advanced Micro Devices, Inc. (NYSE:AMD), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Oracle Corp (NASDAQ:ORCL), Apple (NASDAQ:AAPL), Broadcom (NASDAQ:BRCM), Intel (NASDAQ:INTC), Micron Tech (NASDAQ:MU), ARM Holdings (NASDAQ:ARMH) and Texas Instruments Inc. (NYSE:TXN).
  • Spirit Airlines (NASDAQ:SAVE): Spirit Airlines Ultra Low Cost Carrier approach liberates customers from being forced into paying for services they do not desire or use.  When customers are seeking the best value in travel they can choose a low fare at spirit.com and select the services and options appropriate for their travel needs. Competitors to Watch: AMR Corporation (NYSE:AMR), Southwest Airlines Co. (NYSE:LUV), United Continental (NYSE:UAL), JetBlue (NASDAQ:JBLU), US Airways (NYSE:LCC), Alaska Air (NYSE:ALK), Delta Airlines (NYSE:DAL) and AirTran Holdings (NYSE:AAI).
  • Lone Pine Resources (LPR): This company was spun out of US exploration and production company Forest Oil (NYSE:FST).  LPR consists of the Canadian energy assets of FST. Competitors to Watch: ExxonMobil (NYSE:XOM), Chevron Corporation (NYSE:CVX), BP plc (NYSE:BP), ConocoPhillips (NYSE:COP), Marathon Oil Corporation (NYSE:MRO), Hess Corp. (NYSE:HES), TOTAL S.A. (NYSE:TOT), Suncor Energy Inc. (NYSE:SU), Repsol YPF, S.A. (REPYY) and Petroleo Brasileiro SA (NYSE:PBR).

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