^{Last week, we wrote about why a rock-solid underwriter is one of the biggest drivers of a killer IPO. And why some "lesser" underwriters are often a death sentence for new issues. Today, instead of simply explaining why some are rippers and some are dippers, we'll give you a real world example. One that just happened.}

^{Take Eastern International's recent debut on Nasdaq. It proves my point-it's a case study in what happens when you don't have a heavyweight in your corner. This China-based logistics company, trading as ELOG, launched last week with 1.6 million shares priced at $4, raising $6.4 million before fees.} 

^{By Tuesday evening, East Coast time, it's already cratered to $2.27, a gut-punch drop of over 40%.Pre-IPO shareholders, those who are still in the lockup period (for a long time), must be furious. Now, if you've been a reader of IPO Stream for any time, you know how important underwriters are when it comes to better understanding the potential of an IPO.}

^{So, let's talk about the underwriter here: Maxim Group LLC. They were the sole book-runner, tasked with marketing, pricing, and stabilizing the stock.}

^{Maxim tried their best, no doubt, but they're not running with the big dogs. And because of its lack of reach, ELOG's chances of massive success were in doubt from the beginning. However, it's not simply Maxim's fault here. ELOG did choose them as its sole bookrunner, afterall.} 

^{Now for the flipside. There are underwriters who do have reach. Great reach.  We're talking powerhouses like Deutsche Bank, Morgan Stanley, Bank of America, or Goldman Sachs. These firms bring massive networks, deep-pocketed institutional buyers, and the kind of street cred that keeps investors buzzing. Maxim, bless their hearts, just couldn't match that firepower. Without the muscle of a Deutsche Bank or Morgan Stanley to rally support and steady the stock, and running this IPO alone, Eastern International was left exposed.} 

^{Perfect examples-}

^{HeartFlow and Firefly Aerospace are solid picks. HeartFlow, a heart imaging tech company, debuted in August backed by Goldman Sachs-it opened at $19 and jumped 65% in trading.}

^{Firefly Aerospace, focused on rockets, went public the same month with JP Morgan leading; shares rose over 80% from its $45 price right out the gate. Both crushed it post-IPO.}

^{You see, the market doesn't care about effort, intent or hope.  It rewards clout. Maxim fought hard, but a single, lesser-known underwriter rarely stands a chance against the volatility of a new IPO. Now, don't get us wrong, there are plenty of success stories attached to lesser-known underwriters, but that success often comes when multiple underwriters are running the IPO...}

^{And there are always outliers, both on the "lesser known" and "big dog" side of the coin. But, generally speaking, the odds of success tend to favor the bigger underwriters.This is why I keep hammering the point: pick a top-tier underwriter, or your IPO's could flop, just like Eastern International's did.}

^{Currently, I see five IPOs that are going to be debuting the first two weeks of September and they are looking pretty interesting. I’ve honed in on one or two that we are definitely going to push out to subscribers and it’s feeling like you just can’t miss with these.}

^{IPOs in the pipeline-}

^{The first one is in the tech business. It’s being brought public by Goldman Sachs and Bank of America. Talk about power houses.}

^{Next up is what could be the best. A global crypto gig and this also has, guess who? If you said Goldman Sachs, you’re correct. Also book running is Morgan Stanley.}

^{The third one an engineering and construction company and Goldman Sachs, Bank of America and Morgan Stanley are just some of the absolute monsters that will be bringing this one public.}

^{The fourth, also being underwritten by Goldman, Deutsche Bank, Wells Fargo, and Bank of America. This IPO is a rideshare company, and on demand service.}

^{And finally, the fifth IPO I'm digging into is in the food service business. A major chain that is popping up across the county. This one is being underwritten by Morgan Stanley & JP Morgan.}

^{So, stay tuned for more. This could get very interesting. Post Labor Day, I expect nothing but solid IPOs to be coming out of the Goldman/Morgan Stanley and Deutsche Bank side of town. You will have some really serious opportunities.}