There hasn’t been much excitement in the IPO (initial public offering) world lately as only 13 companies went public in the second quarter. There was only three in July: China Distance Education Holdings (DL, $6.39, down $0.05), Energy Recovery (ERII, $11.00, up $0.06) and GT Solar International (SOLR, $11.98, up $0.51).

There’s a number of companies who have filed which should become public over the next few weeks and months but there isn’t any “box-office” buzz surrounding any of them. There is a mix of industries which are represented and perhaps the best known of the group may be Dave & Buster’s Holdings (DANB).

It’s useful to scan the IPO market to see what stocks are going public. There are some opportunities out there for some good trades on IPO’s that have options, Google (GOOG, $495.01, up $15.89) is a prime example. Although there are no Google-like IPO’s coming out anytime soon, the market is improving, so there could be one or two that might go unnoticed.

Here are a few other companies that have filed to go public:

A123 Systems (AONE)
Alimera Sciences (ALIM)
Brand Energy - no symbol, yet
Cloud Peak Energy (CLD)
Fast Wind Holdings (WNDY)
GCL Silicon Technology Holdings (GCL)
Rexnord Holdings (RXN)
Roadrunner Transportation Services Holdings (RRTS)

I’ll try an keep you updated on the buzz, if there is any, on which of these names may create a stir in the marketplace.

Rick Rouse
Rick@OptionsMentoring.com

Real Goods Solar (RSOL, $7.50, unchanged) made its IPO (initial public offering) debut last week but has failed to “ride the tide” that other Solar energy plays are providing as they breakout to new highs. Real Goods Solar installs residential and small commercial solar energy systems in California and has plans to expand along the West Coast and in New England.

The IPO was priced at the low-end of its $10-$12 range and the stock closed at $8.80 on its first day of trading. Real Goods Solar raised $55 million after offering 5.5 million shares at $10 a share. It is important to note that Real Goods Solar is a subsidiary of Gaiam (GAIA, $15.66, down $0.17) but as a stand-alone company it is already profitable. Only time will tell how well this company will do in the future. Meanwhile, other solar energy plays remain hot:

Canadian Solar (CSIQ, $45.22, up $4.44). I mentioned the company would be announcing earnings on Tuesday and they simply blew Wall Street away. The stock gained 30% yesterday and is up another 11% today after doubling estimates by reporting earnings of $0.61/ share.

Energy Conversion Devices (ENER, $56.18, up $0.98). The company reported earnings last Thursday and is up 20 points since.

First Solar (FSLR, $314.90, up $10.92). The stock is steam-rolling past its previous all-time high of $308 and has traded as high as $317 this morning.

SunPower Corporation (SPWR, $95.54, up $5.54). The stock was trading at 52-week lows in mid-March, hitting the low $50’s. Its been in an uptrend but has a long way to go to get back to its 52-week high of $164.

There’s no doubt that investors are striking while the iron is hot but be careful when chasing these stocks higher. The sector carries some extreme volatility and expectations are getting a little out of hand right now.

Rick Rouse
Rick@OptionsMentoring.com

Every now and then an IPO (initial public offering) comes along that you know the minute it becomes public the demand is going to be strong. Some IPO’s go on to be huge winners like Chipotle (CMG, $118.28), Google (GOOG, $537.79) and Mastercard (MA, $236.00). Intrepid Potash (Ticker Symbol: IPI) is set to make its debut TODAY and only time will tell if it can match the returns of the those IPO’s. However, judging by the demand for fertilizer stocks in general, I wouldn’t be surprised if Intrepid gains 50% or even doubles on its first day of trading.

The company has raised the size and expected price range of the offering twice in the last week. Intrepid originally had priced the offering of 24 million shares at $24-$26. Then it was 30 million shares priced between $27-$29. Now the offering is 30 million shares at $32 a share. This puts proceeds at $960 million.

Intrepid had sales of $213 million in 2007, while earnings came in around $30 million. Once the stock does trade it will already carry a high multiple but investors are looking at what future earnings will be especially with the price of potash expected to approach $1000 per metric ton by the end of the year. It’s about $500 per metric ton right now.

Potash inventories remain low and the product is close to being sold out by all major world suppliers. Add China to the mix and you now have an even bigger market competing for a scarce commodity.

Of course all of this should mean good news for Potash (POT, $208.79, up $4.12) and the May 200 calls (PYPEX, $20.90, up $2.90) I profiled at $6.50 a contract. If Intrepid does as well as I think it is going to do, Potash should benefit as well.

Rick Rouse
Rick@OptionsMentoring.com