IPOs That Will Rise From The Market's Ashes

IPOs Has Rouse From The Market's Ashes

By Joshua "MauiTrader" Hayes is CEO, President and founder of Big Wave Trading Inc.,






LinkedIn stock below, has the characteristics that have been seen in other past winning IPOs.



This darling of Wall Street bears. LinkedIn (LNKD) is a Mountain View, CA provider of a social networking platform that enables members to share their professional identity online via Linkedin.com.

EPS growth has been outstanding over the past seven quarters, with gains of 233%, 600%, 500%, 700%, 50%, and 43%. During the past eight quarters sales growth has been even more impressive with gains of 100%, 92%, 98%, 107%, 108%, 110%, and 120%. These gains are expected to continue well into the future with 2012 annual EPS estimates of 0.35 which is a 1,000%+ gain year-over-year. This huge growth is the main reason it trades at a 311 P/E which will come down during this bear market but will never be “cheap enough” to the average Wall Street investor.

Take the above growth with the company having 0% debt to shareholder equity, a cash flow of $0.41, and a Return on Equity of 88% and you clearly see why management owns 56% of the shares outstanding and 202 mutual funds already own 99% of the current unlocked float.

On top of these great numbers it is clear Linkedin has bigger ideas as it spends 26.8% on Research and Development. A very impressive number showing they are willing to come up with new products/ideas for the future.