Are IPOs Worth Investing in at the Start or is There a Sweet Spot After the Initial Capital Raise?

Are IPOs Worth Investing in at the Start or is There a Sweet Spot After the Initial Capital Raise?

New report highlighting a recent IPO coming Tuesday June 1st, 2021 at market open.

 

Good day everyone,

 

The market indices clawed back some of their previous losses last week finishing optimistically higher by weeks end. We are still noticing that daily gainers, the big winners each day aren’t achieving the big moves we are used to seeing.

 

Investors are still displaying some caution over inflation, crypto currency swings, and the jobs market. We still believe these indicators should not spiral out of control and the economy has very bright days ahead.

 

If you follow us on Reddit, Facebook or Twitter, you already know we want to discuss a relatively new IPO with you.

 

IPOs can be tricky and sometimes confusing for investors. The key point for a company and its executives in an IPO is to raise capital. When the company shares decline after an IPO its still a win for the company because they raised the capital they wanted to.

 

Once the IPO is concluded, the company executives must place their focus on enhancing stakeholder value. The IPO investors lose if the shares go down but may win later if the shares go back up.

 

A classic example is Facebook’s IPO on May 18, 2008, at $38/share. After selling their IPO subscription Facebook shares fell to $20 in the ensuing months. As you may know, some of those early investors, the ones who lost money from the IPO and held their shares, became millionaires, some even billionaires.

 

Not every IPO is a “Facebook” but a large percentage of them follow the same pattern. While the Facebook shares took months to recoup their IPO price and beyond, that process is often different and can happen more quickly in small cap companies.

 

The company we want to discuss has a very tiny float and a large insider position. The technology developed by this newcomer to the NASDAQ has us thinking “what the heck”, we knew that technology existed but seeing it happen in a practical, marketable application is a surprise. We think you may have the same reaction.

This new report will be issued at market open Tuesday June 1st, 2021

Stay tuned and stay informed.

The Traders News Group

 

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Author: Mark Roberts