Here Is The Reason Why Half Of Today's IPOs Were Pulled

Tyler Durden's picture


The market is 4% off its all time highs which means the time to pull IPOs due to "market conditions" has come.

Indeed, out of today's 8 scheduled IPOs, only 4 have been successful. The other four, which also include all of today's proposed biotech IPOs and not to mention Paycom Technologies, a company whose S-1 includes every buzz word imaginable to cloud-based, social-networked man, and which provides "comprehensive, cloud-based human capital management or HCM, software solution delivered as Software-as-a-Service,", have been delayed either temporarily or permanently. Why? The chart below should explain it.

Shown below is the proposed capital raise (based on the midpoint of the indicated IPO range) relative to the company net income, or rather, net loss. It is one of those that needs no comment, but for those who are confused - momentum chasing lemmings suddenly aren't as impressed with cash-burning companies that rely soly on stories of unlimited upside when looking for the greatest fool.


And yet, something is odd about this chart. It is oddly reminiscent of our chart from last Friday showing the IPOs that succeeded. In fact, the two are almost identical.


In other words, in the span of 7 days, something has dramatically changed. What that something is will be revealed as increasingly more market top-ticking IPOs by cash-burning companies are pulled.

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Fri, 04/11/2014 - 11:51 | 4647721 El Hosel
El Hosel's picture

They are holding out for MOAR...Bitchez

Fri, 04/11/2014 - 11:52 | 4647724 Doubleguns
Doubleguns's picture

Moar fools.

Fri, 04/11/2014 - 12:02 | 4647761 new game
new game's picture


Fri, 04/11/2014 - 12:36 | 4647878 ParkAveFlasher
ParkAveFlasher's picture

You guys are doing it wrong.  "Capital raised" equals "Net income".  DUH

Fri, 04/11/2014 - 15:31 | 4648675 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Investors tired of being treated like muppets?

Sat, 04/12/2014 - 05:55 | 4650527 old naughty
old naughty's picture

Nah...I think the auditors woke up, realising they're fxxked by the smart accountants.

Fri, 04/11/2014 - 12:01 | 4647766 new game
new game's picture

no wool on the woolie

Fri, 04/11/2014 - 12:05 | 4647777 CheapBastard
CheapBastard's picture

Coldwater Creek files for Chapter 11 bankruptcy(Reuters)


(Reuters) - Women's clothing retailer Coldwater Creek Inc on Friday filed for Chapter 11 bankruptcy, the latest in a growing list of retailers to seek protection from creditors as consumers keep a lid on spending.

Fri, 04/11/2014 - 12:45 | 4647909 Miss Expectations
Fri, 04/11/2014 - 12:56 | 4647953 Dig Deeper1
Dig Deeper1's picture

No stool on the stoolie!

Fri, 04/11/2014 - 11:54 | 4647726 Chuck Knoblauch
Chuck Knoblauch's picture

Would you like to ride in my beautiful balloon?
Would you like to glide in my beautiful balloon?
We could flow among the stars, together you and I

For we can fly, up, up and away
(For we can fly)
In my beautiful, my beautiful balloon

The world's a nicer place in my beautiful balloon
It wears a nicer face in my beautiful balloon
We can sing a song and sail along the silver sky

For we can fly, up, up and away
(For we can fly)
In my beautiful, my beautiful balloon

Suspended under the twilight canopy
We'll search the sky for a star to guide us
If by some chance you find yourself loving me
We'll find a cloud to hide us, keep the moon beside us

Love is waiting there, in my beautiful balloon
Way up in the air, in my beautiful balloon
If you'll hold my hand, we'll chase your dream across the sky

For we can fly, up, up and away
(For we can fly)
In my beautiful, my beautiful balloon, balloon

Up, up and away
Up, up and away
Up, up and away

Fri, 04/11/2014 - 12:31 | 4647858 ebworthen
ebworthen's picture

"Love, American Style".

Fri, 04/11/2014 - 12:40 | 4647896 Alea Iactaest
Alea Iactaest's picture



Love, American style.

Truer than the red, white and blue.

Love, American style.

That's me and you

Fri, 04/11/2014 - 11:55 | 4647740 i_call_you_my_base
i_call_you_my_base's picture

Executive cash-out delayed indefinitely.

Fri, 04/11/2014 - 11:55 | 4647741 mattgallis
mattgallis's picture

Oink Oink Bitches!

Fri, 04/11/2014 - 15:13 | 4648580 zipit
zipit's picture

Is that you, Miss Piggy?

Fri, 04/11/2014 - 11:57 | 4647747 SDRII
SDRII's picture

You mean it isnt the NASA bombing the moon


"Mission managers will send the orbiter a signal to turn off all its science instruments on 11 April and set the craft on course for a crash landing. But the moon's gravity field is very uneven, and variations in the field will affect LADEE's path as it descends. That means no one is certain exactly when or where on the far side it will crash, just that it should happen sometime before 21 April."


Fri, 04/11/2014 - 11:58 | 4647753 Dr. Richard Head
Dr. Richard Head's picture

I would like to start a biotech IPO for my company Drunken Enterprises.  We specialize in turning beer into urine.  Bet you I could make a killing...

Fri, 04/11/2014 - 17:21 | 4647892 813kml
813kml's picture

Your stock ticker should be PEE to assure shareholders that your company isn't more of the same crap.

Fri, 04/11/2014 - 12:41 | 4647902 spekulatn
spekulatn's picture

Don't forget to include the word organic, sustainable, and green. 

Fri, 04/11/2014 - 11:58 | 4647754 q99x2
q99x2's picture

Spring Break.


Fri, 04/11/2014 - 11:59 | 4647756 Rainman
Rainman's picture

GrubHub has to be a winner ! ...fat and lazy ass Murikans need their food delivered to their door. Next will be an IPO that puts the food in their mouth , then another to chew it for them. aw, fuck it.

Fri, 04/11/2014 - 12:33 | 4647865 813kml
813kml's picture

I'm still waiting on the SnapChat IPO, kiddie porn will always be a line item in government budgets.

Fri, 04/11/2014 - 12:37 | 4647883 Skateboarder
Skateboarder's picture

Let's face it. Your autonomous bodily system is splendid. Digestion, check. Excretion, check. Respiration, check. DIdn't you wish every other aspect of your life was autonomous too, so you have time to focus on what's important: YOU?

Well, now it can be, with Autopilot, the latest and greatest technology that automates everything else for you.

"It prognosticates, and masticates, deliberates, and delivers aid
To automate and operate your life in ways you can't replicate."

Fri, 04/11/2014 - 13:10 | 4648008 indygo55
indygo55's picture

And one that'll wipe their ass.

Fri, 04/11/2014 - 12:04 | 4647770 Spitzer
Spitzer's picture

Its hard on the mind to log onto ZH or Bloomberg these days.  The stupidity is mind numbing...



Fri, 04/11/2014 - 14:37 | 4648378 stocktivity
stocktivity's picture

The Old Spitzer was stupid also.

Fri, 04/11/2014 - 12:04 | 4647775 JailBank
JailBank's picture

I am having a tough time seeing where the problem is here. If these companies aren't making money now that just means they are going to have a ton of room for growth in the future. Notihng but positive for the stocks.

Fri, 04/11/2014 - 12:11 | 4647796 DetectiveStern
DetectiveStern's picture

Then they should stay as private companies. If they can't make a profit for shareholders why should they be A. valued so high and B. be offered to the public?

Fri, 04/11/2014 - 12:58 | 4647963 Alea Iactaest
Alea Iactaest's picture

Down arrow because "things are different."


That, and the fact that you missed the implied /s

Fri, 04/11/2014 - 15:24 | 4648633 Chuck Knoblauch
Chuck Knoblauch's picture

Stocks are being priced relative to revenues instead of profits -

Marc Faber

DOW 1,000,000,000 etc.................


Fri, 04/11/2014 - 12:09 | 4647779 Dr. Engali
Dr. Engali's picture

Opower? Is barack going public? He has the losing money part down pat.

Fri, 04/11/2014 - 14:19 | 4647787 Smegley Wanxalot
Smegley Wanxalot's picture

Years ago I worked at a reasonably high level in Finance at a german Biotech that had just IPO'd prior to my coming onboard.  They laughed internally about how they timed the release to hit what they thought was the max stupidity and euphoria of the market, to crank in as much cash as possible so they could keep the "research" going for the upcoming product failure as long as possible.  These fucking clowns could not find enough ways to waste that money on their lifestyles, first class everything, and anything other than corporate activity. 

I protested numerous times, was basically told to get on the gravy train and shut up, so instead I quit.  They were pissed at me anyway because I refused to sign docs that were blatant fraud to submit to the german govt for reimbursement.  They were buying high-priced assets for use in various grants, and then getting reimbursed multiple times by multiple agencies, and were way overallocating time and whatnot.  Fucking thieves.

It went bankrupt a couple years later.  Likely ripped of the US govt too as it had a facility outside of Boston.

Fri, 04/11/2014 - 12:27 | 4647849 KingdomKum
KingdomKum's picture

...this just in  . . . .   shares of SHITGUM have been pulled .  .  .  

Fri, 04/11/2014 - 12:34 | 4647869 buzzsaw99
buzzsaw99's picture

1) why don't they just borrow the money to buy their own stock options like everybody else?

2) where the hell is calpers? they'll buy anything.


Fri, 04/11/2014 - 12:35 | 4647876 therover
therover's picture

This is the job description from a 'mock resume' I put togehter. I think this can pass for S-1 bullshit


To design, develop and implement multi-threaded, super-synchronous, web-enabled, server-sided, dynamically generated,  platform independent applications that interface with multi-dimensional, multi-user, multi-tasked databases poly-morphed across a dodecahedran 2 gig fabric array accomodating native data transformation mechanisms that utilize satellite linked, infinity tiered, schema to schema fiber network protocols morphed to a enterprise wide distributed storage management system with 100 bronto-byte capacity and robotically enhanced 7 terra-byte Virtual ATL jibber-jabbing across multiple domain portals utilizing X3B2B transverse SCSI using Matrix E1optimization attribute patterns and node to node cellular block 2.5 nano-second cycle times with L2 caching and superscattered binary searches,expand broad-based disaster-recovery capabilities, improve the quantity and quality of digital services available to residents, bridge the digital divide by making services equally accessible by all, expand IT architecture and data-sharing methodologies to maximize the benefits of data-sharing, increase the number of reusable processes for interagency sharing, increase IT workforce flexibility and mobility, design and develop interagency enterprise wide intrusion-detection solutions, harden and titaniumize networks, systems and infrastructures with elevated above cloud computing into transverse worm-hole based technology with networked pulsar/quasar streaming into a vortex type environment along with gamma ray bitty-byte realms chit-chatting with advanced particles sub-divided into square root integers interfacing with Bluetooth cloud busting menu driven scapegoating, with bit bucket navigation options and advanced automated syncronisity related hyper-bolic hearing aid features that incorporate voice recognition patterns.

Fri, 04/11/2014 - 12:36 | 4647880 Rising Sun
Rising Sun's picture

Two hopes will save these markets from crashing:


1)  Bob Hope

2)  No Hope

Fri, 04/11/2014 - 12:38 | 4647889 F.A. Hayek
F.A. Hayek's picture

What about Hope and Change?

Fri, 04/11/2014 - 12:53 | 4647935 ebworthen
Fri, 04/11/2014 - 12:37 | 4647884 F.A. Hayek
F.A. Hayek's picture

It's all about EBITDA positive these days, a la 'The Full Faith and Credit of the United States of America!'

And here I thought the market topped out when facebook IPO'd.

Fri, 04/11/2014 - 17:07 | 4649048 Chuck Knoblauch
Chuck Knoblauch's picture

No, it's about earnings before all costs and expenses.

Fri, 04/11/2014 - 15:32 | 4648679 Notsobadwlad
Notsobadwlad's picture

Why add more excess supply of shares when the current ones on the market have no buyers?

Fri, 04/11/2014 - 16:52 | 4648930 Chuck Knoblauch
Chuck Knoblauch's picture

Complete List of U.S. Retailers Closing Stores, Going, Bankrupt, and Going Out of Business in 2014:

1100  Radio Shack

360    Dots

300    Blockbuster

300    Sears

225    Staples (through 2015)

223    Barnes & Noble (through 2023)

180    Abercrombie & Fitch (by 2015)

175    Aeropostale (“over the next several years”)

170    Jones Group (by mid-2014 )

155    Sbarro

145    Brown Shoes / Famous Footwear

128    GameStop

125    Children’s Place

91      Blockbuster (UK)

80      Family Dollar

76      EE

76      Walgreens

74      McDonald's (Japan)

73      Liquidation World (Big Lots Canada)

63      Build-A-Bear (through 2014)

55      Sprint

50      Kitchen Collection

42      Edwin Watts Golf

42      Fresh & Green's

39     Loehman's

33     Archiver's

33     JCPenney

26     Albertson's

26     Wet Seal

25     Build-A-Bear (through 2015)

25     Yankee One Dollar Stores

20     Barnes & Noble

20     Delhaize

20     Gilly Hicks

20     SONY

18     ALCO

17     Cato

15     Office Depot

12     Target

11     American TV & Appliance

7       Noni B

7      OfficeMax

6      Cord Camera

5      Bi-Lo

5      Macy's

4      Len Druskin

4      Meat House

4      Sprint Gas Stations

3      ACO Hardware

3      Books-A-Million

3      Champps Americana

3      Williams-Sonoma

2      Arden B

2      Best Buy

2      Finger Furniture

2      Haverty’s

2      JMR Chalk Garden

2      Kroger

2      Lolabella Boutique

2      My Favorite Toy Store

2      Nordstrom

2      Powell’s Books

2      Rainbow Foods

I guess Staples, Office Depot, and Office Max doesn't forecast much of a small business recovery anytime soon.

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