Not All IPOs are Created Equal
For potential IPO investors:
- Know the Company
- Drivers of Growth
- The Competitive Landscape
- Valuations of Similar Companies
- Company-specific Risks
The truth is not all initial public offerings are created equal. Unfortunately, the future for IPO companies is often less-clear, impacted by several unknowns including fundamental, macro and geopolitical issues beyond a company’s control.
This implied volatility may make IPOs better suited for investors with longer-term time horizons who can bear a substantial loss of principal.
$Dutch Bros(BROS.US$
$On Holding(ONON.US$
$DICE THERAPEUTICS, INC.(DICE.US$
- Know the Company
- Drivers of Growth
- The Competitive Landscape
- Valuations of Similar Companies
- Company-specific Risks
The truth is not all initial public offerings are created equal. Unfortunately, the future for IPO companies is often less-clear, impacted by several unknowns including fundamental, macro and geopolitical issues beyond a company’s control.
This implied volatility may make IPOs better suited for investors with longer-term time horizons who can bear a substantial loss of principal.
$Dutch Bros(BROS.US$
$On Holding(ONON.US$
$DICE THERAPEUTICS, INC.(DICE.US$
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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HopeAlways : The key points to note are clearly pointed out.
HuatLady : Good points for considerations in shares buying.
HuatEver : Having considered all the points that you have listed maybe investors can budget for a small investment buy for a short duration.
KT88 : Can’t agree more
SyueeOP HuatEver: This could work too.
Before an investor take the plunge, remember to read the company's SEC filings, which contain important information on the company’s financial results and strategy. Consider the size of the stock market sector in which the company participates to get a sense of the company’s growth potential. Evaluate the quality of management, whether the company has competitive advantages.
I believe how well an IPO can do depends upon how long you hold it. The timing involved in selling it, though, can be nettlesome.
Over the short term, when investor excitement is high and the general investment climate is stable, IPOs can produce some startling initial gains. Thus, your small investment, short duration strategy may be a good approach.
SyueeOP HopeAlways: Thank you.
SyueeOP HuatLady:
SyueeOP KT88: