IPO tomorrow. I really don't know what to think about this one. Seems overpriced at $110 but I thought TSLA was overpriced when it hit $1,000.
Well, lets look at their books. I mean this goes without saying right? Its an IPO, but lets take stocks in general. 1)... Can you explain what the company does in one or two sentences to a layman? 2).... Do you have any expertise in that area? 3).... In this particular case, I'm sure gross margins are high af.... its a software company... but what is it's EBITA to enterprise value. 4).... Will there be puts or shares available to short come tommo? .....(F no) That goes w/o saying. 5).... How many shares were held back for the underwriters? 6).... Standard lockup? 7).... Do I really have to post this?! If the answer's to #1 thru #6 sends you to Google, then you're just gambling brother. But momo and chart action will work too on day one. I would never play a stock however at 90X sales + that I couldn't short if I so desired. So.... lets see what the other experts here have to say. ......... This is gonna be my signature from here on out.... "gotta love ET".
I'll be watching it and if the opportunity arises I'll be trading it. Doubtful I hold it through the close. I like to see IPO's base and then buy the breakout if it comes for a swing. For many IPO's, "base" becomes "basement." I track IPO's, every one, and this one is hitting the fintwit wire like very few do.
Its all over finwit!!!??? Well wtf then... its time to go all in..... the "big break even" in Sherwood Forest. (You already know I'm not dinging you on this, but lol) If : 'Its all over finwit'. How can you lose?! Thanks Amun for putting this pig on tommo's radar of stocks that will entertain and that I'd die to short if I could. Buy buy buy. more to follow EDIT: "gotta love ET".
It prices tomorrow night for Wednesday trading. The buzz is all about the fact that Salesforce Ventures LLC and Warren Buffet's Berkshire have each committed to 1/4 bil instock at the offering. That accounts for 1/2 billion of what may be a 3.00 billion offer at the revised expected pricing of $100-$110/share. I'm look to trade it, not own it. Maybe once I'm 90 years old I'll slow down and own some stock.
I had never heard of it so it's best to pipe down on my part. Every media source is heralding its yoy revenue growth. They did the same thing with Slack. And Dropbox, and 2 dozen others. A quick look at the books shows that while revenue grew from $96MM to about $260 MM in one year (impressive)... margins remained flat and they went from $178MM net loss in the same period to a loss of $348.5MM. ... synergy. Is it an airline? Hey, if ya'll can make a buck off of it... ride the wave. $3.2 Billion for a company.... hey... we're used to Trillions now. A few Billion is cheap. Check back in two months and we'll see where tomorrow's high lands.
So its looking like this thing will open near $165. That puts a market cap of about $45.7B Berkshire and Salesforce will make about $142MM each out of the gate... on paper at least. Nice huh? They have a 365 day lock-up it looks like. Everyone else is 91 days. Here's the final S-1. https://www.sec.gov/Archives/edgar/...-1a2.htm#ia73499eb79a34ddeaa563501d30356b0_10 ***note of caution to you Robinhooders or anyone else new to the game: Depending on which broker you use (their software), you might want to be careful because I don't think this stock will be marginable to start. So say you have $165K buying power and you place an order to buy 1000 shares, that order may go through, again depending on your broker's software. Thing is, you're gonna have an SEC violation tomorrow and they'll restrict your account. Hopefully all the brokers have filters now, but don't exceed your actual cash in the account if you want to trade it. Also, one more gotcha. Say you have $50K in the account and you're a PDT. If you buy $50K worth of this thing and close it today... you're done for the day. No more trades. That cash has to settle. Your day trading buying power goes to zero. You won't even be able to buy another stock to hold overnight., and these trading software packages will miss that. But they won't miss it tomorrow and you'll be violated. It gets tricky and I thought I'd point it out so any of you folks that haven't played with these things don't get burned. Best to call your broker and ask if you plan on jumping on this thing today. And it may be marginable... but I don't think it will be, so the above cautions apply.