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$AFRM is giving a GREAT IPO LONG opportunity todayIPO intraday trading strategy idea Affirm is a company offers a “Buy Now, Pay Later” service as an alternative to traditional credit cards. The share price is rising and gonna continue this trend today. The demand for shares of the company still looks higher than the supply. These and other conditions can cause a rise in the share price today. So I opened a long position from $93,00; stop-loss — $88,00; take-profit — $108,00. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
NASDAQ:AFRMLong
by KozakHlib
2
$GRCL is giving a GREAT IPO LONG opportunity todayIPO intraday trading strategy idea Gracell Biotechnologies is a global clinical-stage biopharmaceutical company dedicated to discovering and developing breakthrough cell therapies to address major industry challenges and fulfill unmet medical needs in the treatment of cancer. The share price is rising and gonna continue this trend today. The demand for shares of the company still looks higher than the supply. These and other conditions can cause a rise in the share price today. So I opened a long position from $28,25; stop-loss — $22,00; take-profit — $47,00. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
GLong
by KozakHlib
How do you evaluate the upside potential on new IPO's UPSTSo Upstart looks like a really exciting company. Ex OG google brain started up this AI lending system that beats out traditional models by a lot. I like the team, I like the idea, and it's performing well. with already close to 200% up from it's IPO price though, I'm weary to jump in. Market cap is at 4.5B which is a little high for me cuz I usually target small cap stocks. The lending industry is multi trillion dollars though so technically this thing could shoot to the moon. Would love some advise on how to approach this trade.
NASDAQ:UPST
by lillybear
Wunong Net Technology Co. shares soared as much as 402%Wunong Net Technology Co. shares soared as much as 402% on Wednesday as the e-commerce company extended its climb in a second day of trading since its initial public offering, showcasing Wall Street’s recent appetite for newly listed companies. Stock in the retailer -- which sells “non-genetically modified” food products through its online store -- soared on the day as it triggered 12 volatility halts as of 2 p.m. in New York. Shares rose 141% on Tuesday after the Shenzhen-based company raised $30 million in its IPO . The stock’s debut is among a flurry of listings before the end of the year, which includes last week’s blockbuster offerings by DoorDash Inc. , which climbed 86% on its first day, and Airbnb Inc. , which surged 113%. finance.yahoo.com
NASDAQ:WNW
by AlenCiken
It happened: ABNB broke the IPO highSo for those that were patient and were following my last post about ABNB I just got an alert that it finally broke the IPO day high. At this point there are different ways to structure a good trade both in terms of entry and in terms of risk. Entries: Take a breakout now... this is for the FOMO traders out there that are afraid of missing the move! (I find this to be a poor method in general) Wait for a pullback to the level proper. Now that there is some established prior price action one can setup stops at technical levels either below the last swing low or the all time low. This is very helpful in structuring your risk and position size. Good luck!
NASDAQ:ABNB
by norok
2
BYND over 147.25A few things to note here. First, the .5 fib is from a set from all time low to high, so its a big level for price to base over. Second, the way the Bollinger Bands are pinching down means there's decreased volatility meaning 1. Cheaper contracts 2. Decreased periods of volatility precede high volatility, more indication a big move is coming. Third, Ichimoku clouds are a tool I’m still studying. But the confluence of the fib and cloud at the 155.38 mean it will be a stiff resistance level. Once over the cloud will be a bullish signal and can see higher.
NASDAQ:BYNDLong
by SpinTrades
3
$MASS is giving a GREAT IPO LONG opportunity todayIPO intraday trading strategy idea 908 Devices is democratizing laboratory mass spectrometry with its simple handheld and desktop devices, addressing critical-to-life applications. The share price is rising and gonna continue this trend today. The demand for shares of the company still looks higher than the supply. These and other conditions can cause a rise in the share price today. So I opened a long position from $47,25; stop-loss — $40,50; take-profit — $67,50. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
NASDAQ:MASSLong
by KozakHlib
2
Everything You Need to Know About SPACsIn this analysis, I'll be covering everything you need to know about Special Purpose Acquisition Companies, or SPACs, and my own strategy that I use to choose for risk minimization, and profit maximization. SPAK, the chart above, is an ETF that was specifically designed to invest in SPAC companies. This is not investment advice. This is for educational and entertainment purposes only. I am not responsible for the profits or loss generated from your investments. Trade and invest at your own risk. 1. What is a SPAC? - SPAC stands for Special Purpose Acquisition Company. - They’re also called Blank Check Companies or Shell Companies. But what is this special purpose that they’re talking about? - Their purpose is to acquire an existing company, so that it’s available for trades and investments in the stock market. - They need to acquire a company within a given time frame between 18 to 24 months, sometimes 36 months depending on the conditions. 2. SPAC vs. IPO - Normally, companies go public through a process called an Initial Public Offering, or an IPO. - There’s another method called Direct Listing, which is the method that Spotify and Slack used to go public, but for the sake of simplicity, we’ll just look at a comparison of IPOs and SPACs. - In terms of time period, SPACs can help companies go public much faster than if they were to go public through an IPO. - The process is also much simpler, and has less requirements, and it also costs less to go public through a SPAC. - But, the company’s valuation is discounted, when they get listed through a SPAC. - So for instance, if a company that has an enterprise value of 100 billion were to do an IPO, they’d be valued as a 100 billion dollar company, whereas if they get listed through a SPAC, they’d be discounted as an 80 billion dollar company. 3. Who Makes SPACs? - Normally, people with a reputation in the market make these SPACs. - For instance, Bill Ackman, who’s the CEO of Pershing Square Capital, is extremely well known as one of the best investors, and a lot of people want to bet their money on him. - So people like Bill Ackman are the ones who gather investors up, and create a SPAC. 4. Constituents - When a SPAC is created, and goes through an IPO, the shares are owned by three entities: the founder, individuals, and PIPE, which stands for Private Investment in Public Equity. - Private stake refers to the shares that the founders, or the creators of the SPAC get. - Public stke refers to the shares that individuals buy when the SPAC gets listed. - PIPE refers to the investors who lend money to the SPAC so that they can acquire a company. - So for instance, Let’s say that SPAC is trying to acquire a $10 Billion dollar company, but they only have $5 billion in their trust. - A PIPE can hop in, and lend the remaining $5 billion to the SPAC, and in return, they get shares of the acquiring company for a cheap price. 5. One SPAC Unit - One SPAC unit consists of 1 share and the warrant that comes with the share. - The Warrant is essentially the right to purchase the SPAC share at a designated price later in the future. - It essentially acts as an incentive for the SPAC investors who take on risk. - But you can use the warrant only within a designated time period, which is usually divided into two conditions: 1) either 30 days after the new company’s IPO 2) Or 365 days after the SPAC IPO 6. SPAC Trust Account The money for the SPAC is deposited in a trust, and the funds cannot be used for any other purposes than acquiring a company or refunding the investment seeds back to the investors, in case an acquisition does not happen. 7. Negotiation and Acquisition - When the SPAC gets listed, it’s time for people to search for companies to acquire, and negotiate. - Once everything is prepared, they now move onto searching innovative firms, normally between a timeframe of 18 to 24 months, sometimes a little longer depending on the conditions. - The business that they acquire needs to be at least 80% of the value of the trust account. - So for instance, if the trust account has $10 billion, the company that the SPAC acquires needs to be at least around $ 8 billion in fair market value. - Once the negotiation is done, and the acquisition is announced, they go through a process of getting permission from the SPAC shareholders. - If the SPAC shareholders agree to the acquisition, they get shares of the new company equivalent to the shares of the SPAC they hold, at a 1:1 ratio. - If they were to disagree, they can simply cash out their stake. 8. Example Here's an example to help your understanding: - A SPAC sponsored by BIll Ackman’s Pershing Square Capital made its debut to the New York Stock Exchange, with the largest blank-check IPO (PSTH). - The offering includes 200 million units at $20 each, railing $4 billion in proceeds. Each unit consists of one common share and one-ninth of a warrant, exercisable at $23. - So the ticker of this SPAC is PSTH, and the company they’re acquiring hasn’t been announced yet, so let’s just say that they’re buying a company called Mike’s Burgers, which’ll be listed under the ticker MIKE. 1. As an investor, you buy 9 shares of PSTH at $20 as soon as it gets listed. 2. You now have 9 shares, and a warrant that you can use, since 1 unit of the stock includes 1 ninth of a warrant. 3. So you have 9 shares, and a right to purchase 1 more share at $23. 4. Let’s say Mike’s Burgers got listed on the New York Stock Exchange, and the stock goes wild because the burgers taste great. 5. After the IPO, the stock trades at $50 a share. 6. You, as an investor, think that the stock prices could go higher for whatever reason. 7. So, you decide to wait 3 more weeks, so you can use your warrant. 8. 3 weeks later, the stock soars a bit more, and trades at $60 a share. 9. You now have 9 shares that you bought at $20, and you use the right to purchase 1 more share at $23. 10. You then sell all 10 shares at market value. So, when you sell all your shares for $600, and you’re left with an initial investment of $203, and $397 in profits. 11. So in a trade like this, you could double your investment easily. 9. Risks - First of all, there are risks involved with PIPEs selling their stake. - It’s not like these entities have a lockup period, they can sell their shares as long as they have permission granted from the SEC, so there’s risk involved in that. - For instance, Nikola’s stock prices (NKLA) plummeted after its PIPE sold all their stake. - Secondly, you’re investing in a paper company and you don’t know which company they’ll acquire. - Normally, SPACs are run by veteran investors who know what they’re doing, but there’s absolutely no guarantee that the company it acquires will be a good one. - For instance, there were rumors about how Bill Ackman’s SPAC would be acquiring Airbnb (ABNB) , but as you guys know, it turned out to be false. - So as an investor, who’s not an insider, it’s hard to invest in a paper company without knowing what’ll happen to the SPAC company. 10. How to Choose the Right SPACs - So, we obviously want to minimize risk, and maximize our returns, and to do that, it’s important to choose the right SPACs to get into. - I’ll be providing my own strategy on finding the right SPACs. I’ll call this the 2N strategy. - The key of this strategy is the combination of narrative and numbers . - This is how I select stocks to invest as well, but the approach to SPACs are slightly different. - What do I mean by narrative? I mean that the SPAC or the company that they’re acquiring, needs to have a good story. - They need to have a good leader for the SPAC, they need to acquire a company in a prominent field, and a management team with expertise in the field. - So here are some things I’d look for: - First of all, I would want to see a figure who’s already acknowledged and successful. - Of course it’d be better if they have a successful SPAC deal experience. (Bill Ackman is a good example of someone I’d have my money on.) - I’d also look at the backgrounds of members of the management team. - Look into what their expertise is, their work experience, professional backgrounds, and any noteworthy achievements. - This type of information is normally all available on the SPAC’s website, but you can also look them up on linkedin. - Also look into the institutions that are involved. - If big names like BlackRock and CVC are taking part, and they hold SPAC shares, that’s good news. - You want to make sure that acknowledged institutions are behind the project. - Last but not least, it’s important to look at the industry that the SPAC has eyes on. - You want to take part in a prominent industry, and obviously the trend is tech. - Electric vehicle SPACs have also shown some crazy gains recently, but make sure you invest in a SPAC that operates in a field that you’re familiar with, and has high growth potential. - Now, let’s take a look at what I mean by numbers. - Before we can talk about numbers, we first need to understand how we can capitalize on SPAC opportunities . - The best thing about SPACs is that you can minimize your losses, or even trade risk free if you’re lucky enough. - The offering price of a SPAC stock varies, depending on the company, but normally it’s around $10. - And the best thing about investing SPACs is that there is a price floor. - It’s not that prices are legally prevented from trading below the initial IPO price, but there’s no reason for it to be traded anything below than its offering price, because in the unlikely case that an acquisition does not take place, everyone gets a refund anyways. - So basically, given that you enter at the offered price, there’s nothing to lose, and everything to gain. This is what makes SPACs special. You might ask, how much is there to gain? - The answer is at least as much as its net asset value. - In case you don’t know, the net asset value is calculated by subtracting all liabilities from the assets a company has, and dividing it up by the total number of common shares. - If you actually do your due diligence, and calculate the net asset value of the SPAC you’re investing in, you’ll realize that the net asset value normally ranges around $10.10 to $10.25 right off the bat. - This means that you have a 1-2.5% default return before even taking into account the warrant value, which is substantial, and the upside opportunity. - So, going back to what I mean by numbers, you want to either find a SPAC that is traded at around its offered price or below its offered price. - A SPAC that is already trading at 3 times its offered price probably won’t get you the best returns. - You want to find a SPAC that’s cheap. - Also, make sure you check the trust value, the SPAC’s market cap, and their net asset value. - You want to make sure you get into companies with a high trust value, and a net asset value that is not too far from its market price. Conclusion As long as investors conduct their own research, there is huge opportunity they can capitalize on, with very little to no downside. Thus, I highly encourage that people start exploring the world of SPACs, and maybe even consider adding prominent companies to their portfolios early on. If you like this analysis, please make sure to like the post, and follow for more quality content! I would also appreciate it if you could leave a comment below with some original insight :)
SEducation
by Michael_Wang_Official
42
Example of a bad IPO playI drew this up for a user who asked more detail about the IPO playing strategy I have discussed before. It's important to look at the worst case scenarios (rather than the best case) when evaluating ways of trading. The guidelines are simple to base a trading strategy around: Wait for the high of IPO week Wait for the break Take a pullback to that level Risk management and trade management around these rules are up to the individual trader but those are guidelines that at least keep someone wanting to play an IPO out of trouble. If a trader deviates from this plan they might get lucky, catch that falling knife, and be really happy at how "CLEVER" they were to get it at such a GREAT PRICE! ...But do that enough times and one time you'll become a bagholder. Having a set SIGNAL and ENTRY keeps your trade DEFINED . It gives you something to base your risk and trade management. If you try to buy an IPO at an arbitrary price... where is your risk? Stock going to $0? The key is for an IPO trader to avoid something like NASDAQ:LYFT which just never comes back. If you were to allocate capital to something like this it's easy for your capital to get destroyed because you really only have two hard price points of risk management: Your maximum pain Stock goes to $0 Neither are optimal situations for trading. Have a plan. Trade your plan.
NASDAQ:LYFT
by norok
Super Simple Smart way to play IPOsMy last video got a lot of traction where I was critical of people that buy IPOs on the day of offering. There is a better way! When you see it and how simple it is... you will laugh! Even if you believe in the company, have done your DD, and are ready to make your investment based on fundamentals this method will help you avoid drawdowns and increase your probability of success! One warning though: it requires PATIENCE which many may lack! :P
DEducation
by norok
15
$ABNB is giving a GREAT IPO LONG opportunity todayIPO intraday trading strategy idea AirBNB is an American vacation rental online marketplace company. The share price is rising and gonna continue this trend today. The demand for shares of the company still looks higher than the supply. These and other conditions can cause a rise in the share price today. So I opened a long position from $155,00; stop-loss — $134,00; take-profit — $218,00. Do not view this idea as a recommendation for trading or investing. It is published only to introduce my own vision. Always do your own analysis before making deals. When you use any materials, do not rely on blind trust. You should remember that isolated deals do not give systematic profit, so trade/invest using a developed strategy. If you like my content, you can subscribe to the news and receive my fresh ideas.
NASDAQ:ABNBLong
by KozakHlib
6
DoorDash (DASH): Everything You Need to Know After the IPOThis is my analysis on DoorDash (DASH), written prior to the IPO. Most of the information below is available from the S1 that the company filed to the SEC. This is not investment advice. This was written for educational purposes only. You are responsible for your investments and trades. Invest at your own risk. About DoorDash - DoorDash (DASH) is America’s #1 delivery & takeout platform, covering over 51% of the market share. - They currently have over 390,000 merchants, 1.8 million users, 1 million delivery workers (dashers), with an average delivery time of 35 minutes. - During the latest series H, which took place in June 2020, the company raised $400 million, and was valued at $16 billion. - Main competitors of this firm include Uber Eats (which acquired Postmates for $2.65b), covering 30% of the market share, and Grubhub, which covers 18% of the market share. IPO (Initial Public Offering) - DoorDash priced its IPO price at $102 a share - There was tremendous buy volume as soon as the market opened, with the stock reaching $195 at one point - The stock closed at $189 yesterday, after a successful IPO Business Model - DoorDash charges restaurants a 20% fee on average, for every order made on its platform. - On top of that, they earn money by charging customers fees for delivery, which normally ranges between $6-8 depending on the distance and current demand. - They also offer a subscription service – Dashpass – which exempts its users from paying service fees. - They have an extremely systematic virtuous cycle involving consumers, merchants, and dashers, in which the cycle creates local network effects, economics of scale, and increasing brand affinity. Financials - The company has shown tremendous and consistent growth in revenue over the years. - Nonetheless, they also continue to spend more and more and sales and marketing costs, as well as general administrative costs. - DoorDash is also one of the many companies that benefited from the Covid-19 Pandemic. - In 2019, the company generated $885 m in revenue, and in the first nine months of 2020, they generated over $1.9 b. - While these are extremely impressive numbers, it’s still important to take into account the fact that the company is still not profitable. - In 2019, they had a net loss of $667 million, and in the first nine months of 2020, they lost $149 million. - Nonetheless, a company not being profitable is common with unicorns and startups, as they seek growth as their number one target, keeping in mind that profitability follows easily once they dominate the market. - Another good news is that they currently have more cash and cash equivalents to cover their total liabilities, and thus won’t suffer from issues regarding lack of cash. - Given the current momentum in the delivery market caused by Covid-19, experts anticipate 2021’s revenue at $5.2 billion, which is a 93% yoy growth rate, with operating profits of $280 million, which is a 23% yoy growth rate. Risks - The company might not continue to grow on pace with historical rates - There is intense competition within the delivery industry - Reliance on merchants for the success of the platform - Their focus on expansion might not maximize financial results, and could result in lagging stock prices. Precedent - There are precedents of success regarding delivery & takeout platforms in other countries as well. - Baedal Minjok, South Korea’s largest food delivery app, is in talks of being acquired by Delivery Hero. - Baedal Minjok is a unicorn, which recorded a revenue of close to $8 billion in 2019. - Considering that their 2020 records will be even higher, due to the Covid-19 pandemic, we could expect DoorDash to do even better, since it’s the most dominant company of a bigger delivery market. - Precedent cases demonstrate that the food delivery industry has significant room for growth. - Nonetheless, considering that Baedal Minjok’s revenue is 8 times higher than that of DoorDash, and yet is valued at $4 billion is quite concerning for DoorDash, as it indicates that the hype and growth potential is factored into its valuation. Mike’s Insight In my opinion, I think DoorDash is a company worth looking into. It operates in a solid industry that benefits from the Covid-19 pandemic, and while the growth rate will slow down once the pandemic is over, precedent cases from other countries demonstrate significant room for growth. Nonetheless, since expectations for future growth seem to be factored into the company’s valuation, I’d be cautiously bullish on this company. If you like this analysis, please make sure to like the post, and follow for more quality content! I would also appreciate it if you could leave a comment below with some original insight :)
D
by Michael_Wang_Official
30