First Mercury Financial Corporation (NYSE:FMR) opened for trading today on the NYSE at $17.00 per share - in the middle of its $16 - $18 range. The stock is currently trading at $19.30 in intraday trading today, moving up 13%.

FMR markets and underwrites specialty commercial insurance products, focusing on niche and underserved segments where the company has underwriting expertise and other competitive advantages. More specifically, the company focuses on underwriting insurance in the security industry, which includes security guards and detectives, alarm installation and service businesses, and safety equipment installation and service businesses, which they have done for over 33 years. Although this gives the company a great edge in this industry, the lack of revenue diversification does increase the risk of investment. However, unlike most companies, First Mercury filed 10Q statements dating back to 1996 before its IPO, giving investors a good look into its business. These documents show a company that has a strong balance sheet and a business that continues to grow in a great niche. This is definitely a stock to keep an eye on for possible investment after the IPO dust settles and a fair valuation can be calculated.