Back in the Black
After a long hiatus, the IPO market for Web companies is back, with five deals completed this year and 21 more in registration. That’s up from 14 deals between 2001 and 2003. But not every IPO is worthy. A primer:

Whoa, Profits!
More than 61% of this year’s Net IPO candidates are profitable, compared with 4% from 1998 to 2000. All the rest are cash-flow positive.

Will Search for Stock
Four IPO candidates are driven by the surging market for Internet search advertising, which grew 183% last year, to $2.6 billion. Besides the favorite, Google, there’s Advertising.com, Claria, and Shopping.com.

Look East, Young Investor
Chinese Net companies are plentiful, profitable—and cheap. Three have gone public this year. Waiting in the wings is Mtone Wireless, which provides instant messaging and greeting cards on mobile phones. And Chinese Net companies have price-to-earnings ratios of 19 to 30, well below U.S. Web plays.

Picky, Picky
A bust-burned market is cold to underperformers. Unprofitable online bookseller Alibris pulled its offering after failing to attract interest. Look for the offerings of smaller companies like PlanetOut, eCost.com, and the Active Network to struggle if the stock market sags.