Diamonds and Dogs

10/5/12

LifeLock Inc. (LOCK)

LifeLock is losing life today, down 10.62% at $7.32. The identity theft security company is not a secure investment today with shares falling following the company's IPO. LifeLock seems to be another company that was plagued by overvaluation from the private market prior to their IPO (we all remember Facebook). The company began trading on Wednesday at $9.00 a share and has dropped ever since. While LifeLock continues to struggle, some investors are seeing possible value in the company. For instance, enterprise security vendors Sourcefire and ArcSight both had underwhelming IPOs, trading underwater before going on a tear on Wall Street. ArcSight was purchased at four times its offering price, and Sourcefire continues to trade at three times its IPO price. LifeLock is going to need to create value in order to get investors "locked" on their shares.

Coldwater Creek Inc. (CWTR)

Coldwater Creek is heating up today, up 10.69% at $4.35. Coldwater Creek saw its shares rally after getting upgraded from Piper Jaffery. Analyst, Neely Tamminga, upgraded the stock from neutral to overweight today. The analyst, who raised her target on the shares to $2 from $1, believes that the company is most likely trending in-line with or better than its original guidance. Furthermore, she believes that Coldwater Creek's products have improved while its revamped loyalty program is generating new customers who could provide a catalyst for the company. Adding to Coldwater's rally was a reverse stock split of 1 for 4. Management announced the split Tuesday as a way to maintain the common shares listing on the Nasdaq Global Select Market. Coldwater Creek is helping investors head up river.

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