Investing in IPOs: Why Go Public?

Simply put, most companies go public to raise capital, either by issuing debt or stock.

First of all, being publicly traded opens the door to potentially huge returns for the owners.

But that’s not all.

Public companies pay lower interest rates when issuing bonds. They also can issue more stock to grow through mergers and acquisitions.

Then there’s the prestige factor, the pure ego satisfaction of hobnobbing with the fat cats on Wall Street.

But from an investor’s point of view, the road to prosperity with companies going public is fraught with peril.

Even still, to most retail investors IPO s are exciting because you usually can’t buy into a successful private company.

But let’s not kid each other…

The odds of buying a piece of a hot IPO (known as an IPO allocation) are slim to none. Most IPO s leave retail investors completely behind.

You see, the only way to get in on an IPO is to have a relationship with one of the underwriters — typically investment banks like Goldman Sachs Group Inc. (NYSE: GS), JPMorgan Chase & Co. (NYSE: JPM) or Morgan Stanley (NYSE: MS).

The underwriters work behind the scenes with the company to compile the proper regulatory filings with the Securities & Exchange Commission, handle the paperwork and determine the offering price of the stock.

If the underwriters know the IPO will be in great demand and the price is likely to jump, they’ll shower their favorite institutional clients with an allocation at the initial price.

The big boys are then free to ride the initial surge on the first day of trading and dump the shares when the public jumps in. The whole idea is to line the pockets of big clients, leaving nothing on the table for the little guy.

Take Groupon Inc.’s (Nasdaq: GRPN) recent IPO, for example. Shares were initially priced at $20, but saw such heavy demand that the stock opened at $28. After a brief spike above $30 on its first trading day, the stock has fallen below $13.

Bottom line, only the biggest clients with the deepest pockets are going to get in on a hot IPO.

Facebook IPO: Ignore the Hype

You should be especially cautious if your broker calls you with an allocation for a hot IPO. It’s probably because nobody else wants them.

It’s important to remember that the underwriters are salesmen whose job it is to generate as much talk on “the Street” as possible. They often put on “road shows”-like Facebook did– pitching IPOs as “once in a lifetime” opportunities.

But if you’re thinking about investing in IPOs, the operative words should be “buyer beware.”

In fact, if you look at the charts, you’ll notice many IPO stocks tank after a few months.

That’s because underwriters won’t do an IPO without a contract signed by key employees prohibiting them from selling any shares of stock for a specified period of time – known as the “lock-up period.”

The period can range anywhere from 3 to 24 months but 90 days is the minimum period stated under law.

Thing is, at the end of the lockup period, insiders usually sell their stock to bank their profits, driving the stock down.

But you can still make money on companies going public.

You just have to do your homework.

For instance, Amazon.com (Nasdaq: AMZN) went public on May 15, 1997, with an IPO valuation of $441 million. T oday it’s $101 billion.

EBay Inc.’s (Nasdaq: EBAY) IPO valuation on Sept 24, 1998 was $2 billion. T oday it’s $51 billion.

Just remember, don’t buy a stock just because it’s an IPO — buy it because it’s a great investment.

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Internet marketing has become a large business. This is where you will see a lot of ways to advertise your company and get more attention such as SEO or article marketing. However, one aspect of Internet marketing that you can?t ignore is the social web. The internet is heading in the direction of a smaller social environment every day. This is shoving social media marketing to the next level. This is the kind of marketing where you use social networks to your advantage to make contact with customers and show them your products. This access is the closest that you will have to them online.

There are many tools you?re going to need in order to effectively take advantage of the opportunities social media marketing represents. Podcasting is one of the tools that can be used by businesses that are large and small in order to build their brands and sell even more products. Podcasts are great tools for getting important information about your products out to your target market. The best news though is that you don?t need to have a broadcasting station to do a podcast, you can do it from your home computer. Secondly, any business that makes the decision to utilize social media marketing as a strategy for interacting with each of their prospects can do so with the aid of widgets. This can be utilized for advertising any brand. Sites such as WidgetBox.com or SpringWidgets.com can be utilized to make practical widgets on Twitter, Facebook and other well known media sites. These widgets give you the chance to provide specialized experiences for each user so that you can give them more help. If you have a blog, there are a lot more options for you to use widgets. So , the only restrictions are the boundaries of your imagination.

Lastly, content aggregation is a trend that is increasing and is a major part of the social environment. The methods by which content is amassed is surely a sign of the way the internet will be later on. Content aggregation gives you the opportunity to send you content to all reaches of the internet and keep all of your similar items in one place. So this is a great way to increase your reach and let the social web do its job. In addition, when you conveniently syndicate your content, people will eventually use content aggregation providers to view it.

In conclusion, this article explores how social media has a huge impact on online marketing and how it has changed the whole concept. You will see that top internet marketing professionals use social media marketing as an influential resource to bring more traffic to their online business. Once you begin to use the power of social media marketing consistently, you will see a change in everything that relates to your internet business, from increased sales to a better brand recognition. So if you still have not gotten used to the social side of internet marketing, it is time you did. ?

There is more content available on what to do when your bored there?s plenty of information not covered in this article, take a look at Author?s blog to discover added information.

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FILE – In this June 4, 2010 file photo, a halo forms around the top of the SpaceX Falcon 9 test rocket as launches from complex 40 at the Cape Canaveral Air Force Station in Cape Canaveral, Fla. A launch scheduled for Saturday, May 19, 2012, will mark for the first time, a private company will send its own rocket to the orbiting International Space Station, delivering food and ushering in a new era in America’s space program. (AP Photo/John Raoux, File)

FILE – In this June 4, 2010 file photo, a halo forms around the top of the SpaceX Falcon 9 test rocket as launches from complex 40 at the Cape Canaveral Air Force Station in Cape Canaveral, Fla. A launch scheduled for Saturday, May 19, 2012, will mark for the first time, a private company will send its own rocket to the orbiting International Space Station, delivering food and ushering in a new era in America’s space program. (AP Photo/John Raoux, File)

FILE – In this June 4, 2010 photo, the SpaceX Falcon 9 test rocket lifts off from complex 40 at the Cape Canaveral Air Force Station in Cape Canaveral, Fla. A launch scheduled for Saturday, May 19, 2012, will mark for the first time, a private company will send its own rocket to the orbiting International Space Station, delivering food and ushering in a new era in America’s space program. (AP Photo/John Raoux, File)

(AP) ? For the first time, a private company will launch a rocket to the International Space Station, sending it on a grocery run this weekend that could be the shape of things to come for America’s space program.

If this unmanned flight and others like it succeed, commercial spacecraft could be ferrying astronauts to the orbiting outpost within five years.

It’s a transition that has been in the works since the middle of the last decade, when President George W. Bush decided to retire the space shuttle and devote more of NASA’s energies to venturing deeper into space.

Saturday’s flight by Space Exploration Technologies Corp. is “a thoroughly exciting moment in the history of spaceflight, but is just the beginning of a new way of doing business for NASA,” said President Barack Obama’s chief science adviser, John Holdren.

By handing off space station launches to private business, “NASA is freeing itself up to focus on exploring beyond low Earth orbit for the first time in 40 years.”

California-based Space Exploration, or SpaceX, is the first of several companies hoping to take over the space station delivery business for the U.S. The company’s billionaire mastermind, Elon Musk, puts the odds of success in his favor while acknowledging the chance for mishaps.

NASA likewise cautions: This is only a test.

“We need to be careful not to assume that the success or failure of commercial spaceflight is going to hang in the balance of this single flight,” said Mike Suffredini, NASA’s space station program manager. “Demo flights don’t always go as planned.”

Once it nears the space station after a two-day flight, the SpaceX capsule, called Dragon, will spend a day of practice maneuvers before NASA signals it to move in for a linkup. Then its cargo ? a half-ton of food and other pantry items, all nonessential, in case the flight goes awry ? will be unloaded.

Up to now, flights to the space station have always been a government-only affair.

Until their retirement last summer, shuttles carried most of the gear and many of the astronauts to the orbiting outpost. Since then, American astronauts have had to rely on Russian capsules for rides. European, Japanese and Russian supply ships have been delivering cargo.

It will be at least four to five years before SpaceX or any other private operator is capable of flying astronauts. That gap infuriates many. Some members of Congress want to cut government funding to the private space venture and reduce the number of rival companies to save money and speed things up.

The shift to private enterprise, while revolutionary in space, has a long history in the U.S. The Internet, for example, evolved from government work. Space station astronaut Donald Pettit points to the settling of the American West: The government ran the forts, and private enterprise built the railroads.

In this instance, NASA employees are still working closely with the commercial contenders, giving advice and attending company meetings.

“I see this whole story repeating itself again and again as we move from low-Earth orbit,” Pettit said. “And it will probably repeat itself when we go to the moon and elsewhere.”

No one is rooting more for SpaceX than NASA. The space agency has poured $381 million into the SpaceX effort, while the company has spent $1 billion over its 10-year lifetime, said Musk, the high-tech pioneer who co-founded PayPal and Tesla Motors, the electric car company.

NASA also gave $266 million to a second company it hired to make supply runs. Virginia-based Orbital Sciences Corp. hopes to launch its Antares rocket and Cygnus capsule from Wallops Island, Va., by year’s end.

“This is the start of a real new era,” said Dutch spaceman Andre Kuipers, who will help Pettit snare the Dragon and pull it to the space station with a robotic arm.

Pettit agreed the upcoming Dragon flight is a “big deal,” but added: “I hope this becomes so routine that people won’t even pay attention to it anymore.”

SpaceX will have only a split second, at 4:55 a.m. Saturday, to shoot its Falcon rocket and Dragon capsule skyward. (All spacecraft bound for the space station these days have instantaneous launch windows in order to sync up efficiently with the orbiting outpost.)

SpaceX already has achieved what no other commercial entity has done: It launched a spacecraft into orbit and brought it back intact in a 2010 test flight that ended with the capsule splashing down in the Pacific.

But getting to the space station is twice as hard, said Musk, who is not only CEO but chief designer. A Dragon capsule has never before attempted a rendezvous and docking in orbit ? an exquisitely delicate operation, with the risk of a collision that could prove ruinous for the space station, which has six men on board.

If something goes wrong, “we’ll fix the problem and be back at it,” Musk said. Two more SpaceX delivery trips are planned for this year.

The bell-shaped Dragon capsule is 19 feet tall and 12 feet across. What sets it apart from other capsules is that it can bring back space station experiments and old equipment, as the shuttles did. None of the Russian, European and Japanese supply ships do that ? they burn up when they return to Earth. The Russian Soyuz vehicles that ferry astronauts have little room to spare.

The Dragon will be cut loose from the space station about two weeks after arriving and aim for a Pacific splashdown off the California coast.

Other U.S. companies vying for a shot at launching space station astronauts ? like Sierra Nevada Corp., which is designing the mini-shuttle Dream Chaser ? are cheering on SpaceX since it is the first one out of NASA’s post-shuttle, commercial gate.

Former space shuttle commander Steven Lindsey, director of flight operations for Sierra Nevada in Colorado, said: “It’s a new way of doing business, and there’s a lot of debate back and forth on whether it’s going to be successful ? or whether it can be successful.”

___

Online:

SpaceX: http://www.spacex.com

NASA: http://www.nasa.gov/offices/c3po/home/

Sierra Nevada Corp.: http://sncspace.com/space_exploration.php

Associated Press

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A natural gas drilling rig's lights shimmer in the evening light near Silt, Colo. David Gilkey/NPR

A natural gas drilling rig’s lights shimmer in the evening light near Silt, Colo.

There are a lot of cheerleaders for the nation’s natural gas boom ? in part because they believe it’s a lot cleaner than dirty coal. It’s pretty well-known that power plants that burn coal pump out far more greenhouse gases than power plants that run on natural gas.

But there’s a hitch: We don’t really know how much air pollution is created when companies drill for natural gas.

‘Not So Many Measurements’

Explore key components of the natural gas production process ? and the questions scientists are asking.

Well heads, storage tanks and pipelines all leak methane in sprawling gas fields.

“We need to know a lot about methane itself, which is natural gas, if we’re worried about climate change,” says energy consultant Sue Tierney, “so that we don’t automatically think that gas is so much cleaner than coal.”

Methane is a very potent greenhouse gas. It’s very effective at trapping heat in the atmosphere.

“Fifty years from now, are we really going to be wondering if we really screwed up because we went on this big gas boom? You really wouldn’t want to be messing that up,” Tierney says.

She says that’s why it’s so important to study air pollution from natural gas production now.

Tierney was on an Energy Department advisory panel that recommended gas companies start measuring and reporting their air emissions.

The way it is now, the government doesn’t really know how much methane comes from gas production.

“What the official estimates are based on generally are not so many measurements, but rather estimates,” says Greg Frost, an air pollution expert for the National Oceanic and Atmospheric Administration. “They really are based on maybe a measurement here or there, but then they’re largely based on extrapolation.”

To really find out how much methane is being leaked, many scientists say you need to take lots of direct measurements: How much methane is coming off a well, or a pipeline, or a whole gas field?

Finding The Methane Source

At the foot of the Rocky Mountains, there’s a tall tower that tipped off scientists that estimates are poor substitutes for measuring. Imagine an open metal structure as tall as the Eiffel Tower and in the shape of a Toblerone chocolate box. A tiny elevator runs up the middle.

For the past few years, this tower has been Gaby Petron’s muse, spewing out numbers about air pollution. Petron works for the NOAA’s lab in Boulder, Colo.

“I look for story in the data. … You give me a data set, I will study it back and forth and left and right for weeks,” she says.

Gaby Petron, an atmospheric scientist with NOAA, stands in front of a natural gas well. Several years ago, Petron stumbled upon data suggesting northern Colorado's natural gas production fields were leaking surprisingly high levels of methane into the air. Elizabeth Shogren/NPR

Gaby Petron, an atmospheric scientist with NOAA, stands in front of a natural gas well. Several years ago, Petron stumbled upon data suggesting northern Colorado’s natural gas production fields were leaking surprisingly high levels of methane into the air.

Four years ago, tubes at the top of the tower started sucking in samples of air every day. Petron noticed that data from the tower showed surprising levels of methane.

“Whatever was in the air here was really different than anywhere else,” she says.

Petron’s next step was to try to find out what was creating that methane. She talked a colleague into turning his Prius into a mobile lab for taking air samples.

“You want to see the invisible. You want to see what’s in the air, and you want to know exactly where the air is coming from,” Petron says.

She got into the Prius and headed east, in the direction of the tower. She took a good look around for potential sources of all that methane.

“Every time we drive east, the methane would go up. And I’m like, why is that? And then you come here and you see cows,” she says, “and you’re like, OK maybe it’s the cows.”

Cows burp methane ? but they weren’t a match. They didn’t have the right chemical fingerprint. Rotting garbage produces methane too, but a nearby landfill wasn’t a match either.

Next on her list: the gas and oil fields northeast of the tower. As she drove near, methane levels on her computer screen in the Prius spiked.

She had her match.

“So that’s when you have your moment. You’re like, alright, the story is right there. It’s really not the landfill, it’s really not the cows,” she says. “It’s really the oil and gas equipment and activities that are going on in the region. And it’s not new. It’s always been there. We were just not measuring it.”

Petron’s measurements show the gas and oil fields in Northern Colorado are probably leaking twice as much methane into the air as the industry says they are.

“I think the atmosphere is a good way to look at things in terms of emissions because it’s not lying,” she says.

She published her work in the Journal of Geophysical Research a couple months ago.

Making The Most Of Estimates

So why don’t gas companies measure their methane emissions? Cindy Allen, who heads the environment team for a drilling company called EnCana, says it’s not doable. There are a lot of gas fields, and some of them sprawl over hundreds of square miles.

Allen says it would take too much work for companies to maintain air pollution monitors near each well site.

“And they’re very expensive. It’s not realistic to install such devices on every single emissions source that there is,” she says.

Howard Feldman from the American Petroleum Institute says companies are trying to improve their estimates. His trade group is working on a new survey of methane emissions from tens of thousands of wells.

But Feldman says more measurements like the ones that came from that NOAA tower are needed, too.

“One in and of itself isn’t sufficient. Both are valid and both add to the information that we have,” he says.

Feldman says it’s in the industry’s interest to find leaks and capture methane. That way, they can sell it instead of losing it to the atmosphere.

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Boxers describing a classic knockout punch talk about snapping their opponent?s head back or turning it around. That?s because punching someone unconscious?or killing them?usually results from the rotational forces placed on the head, not from the direct impact of the fist itself. A hook to the side of the head, or an uppercut to the chin, can send the head spinning, which breaks blood vessels inside the skull. In these cases, victims may die of internal bleeding hours after the fight, with friends and emergency medical personnel never realizing what was going on.

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The University of Indianapolis has been awarded the Great Lakes Valley Conference All-Sports Trophy for 2011-2012, capping a stellar year of conference championships in seven sports.

Wheeler

The most recent came from the baseball team, which lost the first game but then won five straight?to rule?last weekend?s conference tournament in Evansville. Those wins included the first recorded no-hitter in?GLVC championship?history, thrown Saturday by junior Phil Wheeler, a criminal justice and psychology major from Decatur, Ill. The?achievement was noted on ESPN?s SportsCenter. Head Coach Gary Vaught?s top-seeded squad begins NCAA regional action Thursday night in Ypsilanti, Mich.

The other Greyhound conference trophies this year came in volleyball, men?s indoor track and field,?women?s?golf, softball, and both men?s and women?s outdoor track and field. The All-Sports Trophy is UIndy?s fourth, and its first since 2002-2003.

Willey

?I?m incredibly proud of our student-athletes and coaches for their success this season and excited that the GLVC All-Sports Trophy will be back at UIndy,? Director of Athletics Sue Willey said for a story on the?Athletics website. ?It?s a credit to their athletic dedication, in addition to the hard work they put into their academics, that makes UIndy a model NCAA Division II institution.?

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16 May, 2012 at 9:28 am in Sports

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[ [ [['A picture is worth a thousand words', 5]], ‘http://news.yahoo.com/why-facebook-bought-instagram-4-theories-160400376.html’, ‘[Related: Why Facebook bought Instagram: 4 theories]‘, ‘ ‘, ’630′, ‘ ‘, ‘ ‘, ], [ [['He was in shock and still strapped to his seat', 9]], ‘http://contributor.yahoo.com/join/yahoonews_virginiabeach’, ‘[Did you witness the jet crash? Share your story with Yahoo! News]‘, ‘ ‘, ’630′, ‘ ‘, ‘ ‘, ], [ [['A JetBlue flight from New York to Las Vegas', 3]], ‘http://yhoo.it/GV9zpj’, ‘[Related: View photos of the JetBlue plane in Amarillo]‘, ‘ ‘, ’630′, ‘ ‘, ‘ ‘, ], [ [['Dick Clark', 11]], ‘http://news.yahoo.com/photos/dick-clark-dies-at-82-slideshow/’, ‘Click image to see more photos’, ‘http://l.yimg.com/a/p/us/news/editorial/c/21/c217c61aa2d5872244c08caa13c16ec5.jpeg’, ’500′, ‘ ‘, ‘Reuters’, ], [ [['the 28-year-old neighborhood watchman who shot and killed', 15]], ‘http://news.yahoo.com/photos/white-house-stays-out-of-teen-s-killing-slideshow/’, ‘Click image to see more photos’, ‘http://l.yimg.com/cv/ip/ap/default/120411/martinzimmermen.jpg’, ’630′, ‘ ‘, ‘AP’, ], [ [['Titanic', 7]], ‘http://news.yahoo.com/titanic-anniversary/’, ‘ ‘, ‘http://l.yimg.com/a/p/us/news/editorial/b/4e/b4e5ad9f00b5dfeeec2226d53e173569.jpeg’, ’550′, ‘ ‘, ‘ ‘, ], [ [['He was in shock and still strapped to his seat', 6]], ‘http://news.yahoo.com/photos/navy-jet-crashes-in-virginia-slideshow/’, ‘Click image to see more photos’, ‘http://l.yimg.com/cv/ip/ap/default/120406/jet_ap.jpg’, ’630′, ‘ ‘, ‘AP’, ], [ [['xxxxxxxxxxxx', 11]], ‘http://news.yahoo.com/photos/russian-grannies-win-bid-to-sing-at-eurovision-1331223625-slideshow/’, ‘Click image to see more photos’, ‘http://l.yimg.com/a/p/us/news/editorial/1/56/156d92f2760dcd3e75bcd649a8b85fcf.jpeg’, ’500′, ‘ ‘, ‘AP’, ] ]

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