Splunk (SPLK) is a “big data” company. Splunk® Enterprise™ collects, monitors,
indexes and analyzes the machine data generated by IT applications and
infrastructure--physical, virtual and in the cloud. This machine data contains a definitive record of all
transactions, systems, applications, user activities, security threats, and
fraudulent activity. This data is
largely untapped; Splunk helps organizations analyze this data. Their growth is in part due to its freemium
model. Their first day pop – 109%,
closing at $35.48. They were up another
2% on Friday.
Infoblox (BLOX) is in the automated network control space. Infoblox products automate the
business-critical network services required to connect networks, applications,
and people. Gartner estimates that they
have about 40% of the DDI market. DDI equals - Domain Name System (DNS),
Dynamic Host Configuration Protocol (DHCP) and IP address. Network acronym soup, so to speak. Their only profitable year so far was 2010. Infoblox stock
debuted on the New York Stock Exchange with the ticker symbol BLOX at $22.57, a
41 percent increase over its late Thursday pricing of $16, , and closed at
$21.51. This was a 34.4 percent pop.
Proofpoint (PFPT) is a security-as-a-service vendor that delivers
data protection solutions that help medium- and large-sized organizations
protect their data from attack. They've been around since 2002. Gartner placed
Proofpoint in the Leaders Quadrant in its 2011 Magic Quadrant for Secure Email
Gateways. In their IPO priced its shares
higher than their initial range, asking $13 a share from investors. Shares were first offered on the NASDAQ under
the ticker symbol PFPT at $16.85, an increase of 29.6 percent, and closed at
$14.08, and 8.3% pop over the initial $13 price.
Splunk would seem to be the winner from the perspective of
biggest pop. The flip side is that the
smartest guys in the room doing the analysis should have had a higher asking price.
You’ve got to look at stories like “The Art of the IPO”, in
the Wall Street Journal. “It's a fine
line. Price your shares too high, and
you'll collect a lot of money. However,
the subsequent drop may alienate investors and demoralize your employees. Price them too low and you'll grab plenty of
headlines as your stock soars on takeoff, but you've failed to raise nearly as
much as you could have, and the initial buying frenzy may end up costing you
some long-term investors.”
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