A very big, very busy week on Wall Street got off to a negative start thanks to a new batch of negative headlines out of Europe and a profit warning from Intel.
If the sell-off continues, it will make life very different for the 11 firms expected to price initial public offerings this week, including a whopping six on Thursday.
If all 11 deals get priced -- a very big "if" -- that will make this the busiest week for IPOs since November 2007, MarketWatch reports.
"It's extremely bullish if they can get these deals done," says Josh Brown, vice president of investments at Fusion IQ and author of The Reformed Broker blog. "It's just a really interesting that you can do a deal right now amidst all this tumult overseas where sovereigns can't even raise money with bonds."
But, again, it's a really big "if".
Look, Don't Touch
As Brown notes in the accompanying video, several deals on the calendar this week were postponed from earlier in 2011."There were several two-to-three weeks period that you just couldn't do a deal" because of market upheaval just like is happening on Monday. In recent trading, the Dow was down more than 200 points.
In such times, IPOs are pulled for what is generally dubbed "poor market conditions," and Monday certainly belongs in that category.
Barring more big down days, the IPO calendar this week features social gaming giant Zynga, which is set to raise $1 billion in the biggest Internet IPO since Google in 2004, as well as luxury fashion retailer Michael Kors.
Whatever the name or industry, Brown's recommendation for investors interested in IPOs is the same: Look, but don't touch.
"If you look at the record of the 'hot' deals in 2011, you're best bet is to steer clear," he says. "I don't think you're going to miss anything if you wait a day or two [after the IPO]. Give it some time to settle down do some due diligence; you might even sidestep a landmine by doing that."
Anyone who bought the Groupon or LinkedIn IPOs, among others, is no doubt wishing they'd heeded that advice. But that won't stop some investors from feverishly trying to get in on this week's IPOs - should they launch - or the media from breathlessly reporting on the first day "pop".