It’s only taken 20 years but the hallmarks of the excesses of the 2000 Tech Wreck are in play again. At the same time, some of the lending mistakes of the GFC are being repeated.
Tag Archives | IPOs
Many large investors pay higher brokerage fees, hoping to gain favour with brokers to gain access to IPOs. Are rare IPO gains worth the loss of quality execution at the best price every day?
Uber is the largest loss-making startup in history, and while investors will climb aboard the IPO and return money to early investors, the stockmarket will eventually realise there is no identifiable path to Uber profitability.
2017 was a watershed year for LICs, not only because of the increase in issues, but the new features that address previous shortcomings.
When it comes to company floats or IPOs, sellers know much more about the business than buyers, so before getting caught up in the euphoria of a new listing, consider what it is they know that you don’t.
Watch the many different forms of corporate activity for clues to the way management is thinking about a company’s future and the ways to finance its growth. This can be especially useful for investing in small cap stocks.
It’s common practice for LICs to issue ‘free’ options with their initial public offerings to offset the effect of listing costs on NTA. So, why are LIC options rarely exercised?
US companies might be leading the global technological boom but there are also opportunities to invest in new Australian companies that are at the forefront of new technologies.
An insider’s view of how institutional investors approach a hot IPO and the charade that goes on between fund managers and the investment banks running the show.
There are plenty of innovative companies out there, but sustained success needs barriers to entry, strong distribution, marketing and research budget and product differentiation.
The major hedge fund index has performed poorly in the last few years, and there are reasons why hedge funds might find excess returns elusive for a while longer.
When a new company comes to market with little or no earnings history, investors need to turn to other factors to assess the merits. It’s a higher risk game but the rewards are there.
Successes and failures have been spread evenly across the current IPO cycle, so what should investors look for? There are special situations in new floats which improve the chances of finding a winner.
If we glean anything from the demise of Dick Smith, it is that Australia’s disclosure requirements for prospectuses need serious improvement. The market is not properly informed during new share issues.
Applying the strategy employed by investing legend, Peter Lynch, might have helped understand the demise of electronics retailer Dick Smith well before most equity analysts saw it in the numbers.
Investors face a barrage of glowing research from investment banks trumpeting the blue sky potential of new companies seeking to be listed on the ASX. It’s crucial to ignore the spin and focus on the business itself.