It's not often you get 4 different companies listing on the ASX in one day – but that's exactly what's happening today. With the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) expected to post a strong bounce, it could be a buoyant market for these stocks. It could also be a great time to jump on board, before other investors discover them – but investors need to do their research.
Here's our view of the four companies…
Genetic Signatures Ltd (ASX: GSS) has developed a range of diagnostic tests and its EasyScreen product is already in use by major hospitals in Australia for the detection of a range of infectious diseases. Genetic Signatures issues shares at 40 cents, and are currently up 10% at 44 cents. However, it appears the IPO fell short of expectations, with only 18.8 million shares issued, compared to the minimum subscription of 30 million shares. While revenues are growing, the company is still reporting million-dollar losses but hasn't provided a forecast for this year.
Oth levels FPO (ASX: OLV) better known as OtherLevels Holdings Limited has issued 30 million shares at 20 cents under its IPO – with shares currently up 5 cents to 25 cents. The company offers a digital marketing platform to customers, based in the cloud (or Software as a Service – SAAS). 81% of the company's revenue comes from the US and Great Britain. The big opportunity for OtherLevels is the increasing use of mobile technology and the 'Internet of Things', as businesses move away from typical email and SMS marketing to new digital channels. OtherLevels is still unprofitable.
The A2 Milk Company Limited (ASX: A2M) (NZE: ATM) is already listed on the New Zealand Stock Exchange but has dual-listed on the ASX today at around 50 cents per share. With dairy products and milk powder demand growing, particularly from China –which is expected to grow 34% over the next decade – and imminent launch into the US market, A2 Milk looks to have a solid future ahead. The company also receives a premium price for its A2 milk which stands it in good stead against its competitors and with supermarket customers. A2 Milk is profitable but reinvests profits back into the business, rather than pay dividends.
Touchcorp Def Set (ASX: TCH) or Touchcorp Limited, issued 116 million shares at $1.40 under its IPO at a PE/ratio of 21.9x for the 2015 financial year. Clearly, the high price means Touchcorp is expected to grow strongly. The company has developed a software system that enables the electronic delivery of non-physical products, services and entitlements to customers through multiple channels. Products can include things like mobile phone and broadband recharge vouchers, attraction tickets, and fishing licences.
Foolish takeaway
Of the four stocks above, Genetic Signatures and OtherLevels are highly speculative and have yet to produce a profit. A2 Milk and Touchcorp would be my preferred bets. But if you are after dividends, here are 3 ideas you won't want to miss.