Subject: These High-Tech IPOs Are Fueling the Nasdaq Rally
URL: http://mney.co/1GEMVmk
penny tech stocks
These High-Tech IPOs Are Fueling the Nasdaq Rally
By Michael A. Robinson, Defense + Tech Specialist, Money Morning • @Robinson_STI - April 2, 2012
Investing in Tech Stocks in 2012: New Opportunities Arise from Scrapped AT&T Deal
Don't look now but big paydays are here again in the tech-heavy Nasdaq.
From the depths of the 2009 bottom, the Nasdaq is up 139%, hitting levels it hasn't seen in more than 10 years.
In the last three months alone, the bellwether index is up nearly 19% -- outpacing the 12% gain in the S&P 500.
But here's the thing: It's not all about Apple.
The high-tech IPO market is practically on fire. One of them is Jive Software (NASDAQ: JIVE).
Since Jive debuted last December, shares have jumped 25% from the offering price on the first day.
Since then, the stock has done nothing but power ahead. At the close of trading Thursday, Jive had nearly doubled in less than four months!
Hot High-Tech IPOs are a Major Market Trend
But that is just the beginning. Successful new issues like Jive reflect major trends reshaping markets.
Jive creates tools that help businesses run social networks, clearly an important way for many firms to reach new clients.
Jive is hardly alone. Several high-tech IPOs are showing excellent returns in the market's strong rally.
In fact, this actually is the best overall period for tech stocks since the "dotcom" crash 12 years ago.
Aside from Jive, several other IPOs have turned in double-digit gains in the last several months helping to lead the overall market higher - especially the Nasdaq.
Of course, the Nasdaq still needs another 40% surge to match pre-bubble values. But that's not the point.
Investors need to remember that every bull market contains leaders that have new products in new fields.
That is what always lands solid high-tech IPOs in the winner's circle.
The good news for investors is that they can expect to find more new issues in the weeks ahead.
PricewaterhouseCoopers LLP said in a recent report that 274 firms filed registrations in 2011, the largest number in several years. Of those, about 160 remain in the IPO pipeline.
Now don't get me wrong. I'm not suggesting you throw a dart at the IPO board. Far from it.
You still have to remain a disciplined, focused investor.
Just think if you'd tied up a lot of funds in BATS Global Markets. The tech-focused exchange had to withdraw its IPO last week because of a software glitch.
Of course, that kind of mistake isn't just stupid. It's inexcusable. But let's not focus on the negative.
There are just too many winners to look at.
By Kerri Shannon, Associate Editor, Money Morning - December 20, 2011
The end of the AT&T Inc. (NYSE: T) deal with T-Mobile USA isn't just a win for U.S. consumers - it's creating new opportunities for investing in tech stocks in 2012.
Since AT&T Inc. announced Monday it was backing out of the $39 billion deal to avoid a lengthy and costly legal battle, the tech sector has been buzzing with what's next for both companies.
The acquisition of T-Mobile USA, a subsidiary of Germany-based Deutsche Telekom AG (PINK ADR: DTEGY), would have made AT&T the largest U.S. wireless carrier, leapfrogging current No. 1 Verizon Wireless (NYSE: VZ). It would have also thrown a lifeline to the ailing T-Mobile, the fourth-largest U.S. wireless provider behind Verizon, AT&T, and Sprint Nextel Corp. (NYSE: S).
But AT&T couldn't prove to the U.S. Justice Department, which filed an antitrust suit in August, that the deal wouldn't ruin competition by creating an industry duopoly. Ever since AT&T announced the plan in March, U.S. consumers feared future higher rates and fewer plan and phone options.
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