These IPO observations relate to industry/group trends.
As you replied to someone on your blog, I agree with you 100% that industry trends are best spotted by looking at individual charts. Absolutely.
However, IPO's can provide a heads up on what to look for. It is very clear that when a large number of companies in one group start to have IPO's, that group will sooner or later (barring some extraordinary event) take off. Now I am just a housewife who did not attend the University of Chicago, but it basically boils down to "cost of capital". Assuming the ipo's are not to simply buy out private equity, companies raise money in ipo's primarily for expansion where the return will be greater than their cost of capital.
If we look back we can see that energy partnerships, Chinese companies, shippers and solars dominated the action in the last year. The "lift off" in the stocks came well after the trends in the ipo's could have been spotted. Not that one should just wily nilly buy any company in those groups, but it can give you a "heads up". I remember I made decent returns last year when the casino IPO's of GCA, FNET, LVS and WYNN were the rage. And it is also interesting that even during last year's ethanol craze there were no ethanol IPO's that I am aware of (i.e. not justified by cost of capital).
Today, a quick scan of the current crop shows several "network" names (BBND, ARUN, CAVM, LLNW, STAR, VRAZ). I don't even know what a "network" is (some I own, some I don't) but the trend is clear and is bolstered by the Juniper results the other day. On a more general "intellectual" level, the group could be from Timbuktu or making little green widgets, but whatever the group is a trader should take notice and be ready to react.
Related Post: How to trade IPO's