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Markets & Stocks
IPOs test 'January Effect'
January 5, 1998: 12:48 p.m. ET

Traditionally outperforming in January, small cap stocks are deals to watch
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NEW YORK (CNNfn) - With the first full week of 1998 under way, the question on the minds of the IPO market is whether the "January Effect" will return to bestow its blessings on small stock offerings or whether, as in the last two years, large stocks will once again outperform the small caps.
     During the month of January in 40 of the last 45 years, small-capitalized companies have outperformed larger ones by an average of 5.4 percent in the so-called January Effect..
     However, while this effect can produce optimistic underwriting of new issues for small companies, stocks debuting in the last three Januarys have raised only marginally more than the sums initially sought, down from an average 4 percent premium for all IPOs during the same period.
     On average, January issues have gained a sluggish 13.45 percent on their first day of trading, compared with the 18 percent first-day gains of IPOs in general.
     Is there life after a sluggish January debut? Five of the 30 best-performing IPOs in 1997 were brought public in January and only one of those, Crystal Systems Solutions (CRYSF), a computer company specializing in Year 2000 solutions, priced above its initial filing range. Transcrypt International (TRII) raised less than half of what the company had originally hoped for during its debut month, but 12 months later ranked the 10th-best performing IPO of last year.
     As the market begins to test the January Effect for 1998, the week's largest IPO deal will be Resource Asset Investment Trust. The Pennsylvania-based REIT plans a $112 million offering priced at $15.
     The other four IPOs planned for the week include a $30 million offering from Apollon -- a maker of non-viral DNA-based vaccines for infectious diseases including AIDS -- and two software companies. Paradigm Geophysical Ltd., an imaging software company, plans a $45 million offering. Dynamicweb Enterprises, a maker of electronic commerce software, is slated to raise just over $7 million.
     Rounding up the initial offerings this week,: Diversified Senior Services, which provides home-care services to the elderly in North Carolina and throughout the Southeast, is in this week's pipeline to raise $9 million. Back to top
     -- by Bambi Francisco for CNNfn Interactive

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Underwriter leads IPOs - Dec. 22, 1997

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.