I was right about the IPO for Kar Auction Services, Inc (KAR). In it's debut Friday, 12/11/09, it opened at $12.00/share (was supposed to open between $15-$17/share) and closed that same day up only $.03.
Today, it fell to as low as $11.73 before closing back up to $12.00. This article I read in the Associate Press explains one of the reasons why (and I said it first!);
"Analysts said investors are likely wary of KAR's debt. According to recent regulatory filings, it owes creditors $2.5 billion".
It also probably doesn't help that out of sales of $1.31 Billion, it only made a profit last year of $17.9 Million. That's a profit margin of just barely 1.36%, and sorry, but I could do 4 times better than that by investing in any stock in the Dow Jones Industrial Average that yields over 4% (Currently AT&T, DuPont, Kraft Foods, Merk, and Verizon).
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