I saw Nuance two different ways the last couple weeks. They're running a radio ad for a "pdf" software. This is in competition with Adobe I guess. The second is that they made the "most declined" stock filter I run around Friday.
If you look at a lot of the new companies with neg earnings, they all fit the same pump and dump criteria. the only difference is you have an institution trying to sell it.
Sorry I was trying to type on my iPhone. It sounds like post earnings drift but can you explain more.
Well, if you think about the concept of an IPO and look at what they are using the funds for, its often used to pay for debt. for us retail traders, the price we pay is for theoretical "unlimited growth" instead of guaranteed return like loans have. If a company is working efficiently and growing, why would they want to offer a piece of their company? theres good reason to. Even if they have a plan for expansion, that segment of the business is unproven. Its like, if you can serve 100 people efficiently at a restaurant, theres no guarantee that you can serve 1000 people with the same standard.
Also sometimes there's an economy of scale that makes it better for a company to sell shares than to slowly grow size. Or there's a risk of competition unless they're quick. But having made excuses for them, I would never buy into an IPO. Well at least I would never buy in as anything other than a short term trader. And on the other hand, what's the saying? Ah, here it is: "Never name the well from which you will not drink."