by Travis Johnson, Stock Gumshoe | September 11, 2020 6:25 pm
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Regarding IPO’s, Paul Mampilly recommended buying NNOX on 8-21 post IPO at $21.50. I managed to get in at $20.34. For some reason he recommended selling on 9-2 for $39.25, a nice 82+% profit but I decided to hold on and was patting myself on the back when this morning the stock bounced up to $53 at which point I sold and was patting myself on the back when 15 minutes later it dropped back to $51 dollars. When I came back towards the end of the trading day I was kicking myself instead when it closed at over $64. I guess it could easily have gone a different way so I decided I would be happy my nice return.
Wow that is one volatile stock! Down 21% today at$39.00. I guess you can start patting yourself on the back again.
Can someone explain to me how an ordinary person with an Interactive and Choice Trade account and a modest capital of about 20 thousand dollars can participate and buy shares before the IPO. Until recently, this was only for accredited investors with over $ 300,000 in annual income or over $ 1 million in the account.
I just couldn’t listen to Teeka’s webinar and figure out how or where you can buy shares of private companies before the IPO. Except through some funds where they determine when and at what price you can sell them, which is why you can almost always earn only cents. Also, where and how can I buy warrants from some companies if they offer them and not just their shares
If anyone is so kind and understood I will be happy to inform me here or at BGMilitaryUnion@gmail.com
Good luck to all
Thanks again Travis for a thorough, well researched and annotated article. This “pre-IPO” hustle must be very lucrative for these barkers. Jeff Brown is holding his own seminar on Orphan Drug IPO’s later this month through his Brownstone spin-off . I won’t be buying into his pitch either, though he is , in my view, a more credible authority on this topic than Teeka.
It makes me really nervous when big publishing groups promote privately sold and illiquid companies with whom they clearly have some relationship (not necessarily an illegal one). The odds of small investors losing their entire investment if they dabble in private companies are very high. The harder they sell it to you, the more suspicious I’d be. You want to buy what looks best for your situation, not what a huge publisher is trying very hard to sell you.
Hi Long time subscriber and first time poster. What is your opinion on the upcoming Snowflake IPO? Thanks
Haven’t looked into that one yet, though Berkshire investing in it certainly makes it an attention-getting story. Will try to read up.
Thanks Travis !! Unity Software IPO is also upcoming next week
Time to add 1-5 shares of a bunch of stuff on Monday haha. Trying to keep cash on-hand in my Roth, at least for the next year, awaiting another March-like dip (or worse).
Keep telling myself it’s time in the market not timing the market. Happy to be subscribed here while everything plays out.
Ian Wyatt is teasing the Airbnb Pre-IPO as a monthly service, any comment on this one?
in my experience wyatt is pedaling Pershing square or another fund that’s likely to get its hands on Air bnb, i didn’t make a penny using wyattes recommendations and canceled everything after a year . For this topic Travis is right emerald health, teeka tiwaris portfolio for this stuff is palm beach venture and out of 8 stocks in the IPO portfolio 7 are losers last time i saw them, his marijuana stock picks are flyboy ideas and we all know whats happened to that sector. To Travis view none of Teekas picks are amazon
Thanks Travis. I know Ant Financial is not included here. But what do you think of it? I would love to get some of the IPO but not sure how to participate other than buying BABA.
Usually brokers reserve their IPO allocations for their best customers — the people with the largest accounts, or who trade the most. You can always ask.
But other thank this crazy year, and other than a few fantastic examples in the past decade, or stocks that are just wildly underpriced at IPO in order to create some enthusiasm, I’d say that probably most stocks trade below their IPO price at some time in the year following their IPO. There’s usually not a rush.
Ant Financial is a dominant fintech company, and probably worth owning depending on what the valuation looks like, but it’s huge so in a normal world it shouldn’t move that fast up or down based on the IPO. The price you pay is the only thing you can ever control, so it’s best to either buy stocks slowly if you aren’t comfortable with a specific price point, or wait for your price if you have a valuation that makes sense to you. In general, I prefer to wait for the lockup period to expire after the IPO — that gives us some indication of how desperate the insiders might be to sell (they’re generally not allowed to sell for the first six months), and it also often brings some surprise new supply to the market, which can depress the price. Doesn’t always work, sometimes stocks just shoot higher, but I’m a little guy-shy about brand-new IPOs.
Thanks Travis. I am definitely not their best customer. I will wait as you suggested.
Thank you Travis for the very eye opening explanation about the pre ipo story of Tiwari and in general!!!
Al a newby i was almost convinced by the Tiwari Ad.
dont be
sorry i meant dont be convinced, I’ve lost thousands on his crypto picks , if you want the newsletter he’s pedalling message me
Yes, I was almost convinced as well by Teeka Tiwari on this pre-IPO subscription. However as with only6greens I remembered the crypto one that I did join (then canceled and changed to someone else) and came back to my senses!
Yes, Tiwari is a snake oil salesman. All he has for his ridiculously enormous price is some pamphlets. He can’t get you IPO’s or Pre-IPO’s. You really have to be a heavy hitter or know somebody to get into that game. That’s one way that the rich get richer.
Hi Travis Re #SFIX, You mentioned this ‘(I also have some short-term bets on both puts and calls for SFIX, since I think there’s a good chance that investors will react big to the next quarter one way or the other)’. I see a call posted dated 8/20/2020 in the Real Money Portfolio but not the above. Just wondering.
As a 73 year old woman who was very specific in her clothing preferences, I was so disappointed to receive exactly the opposite in my first “Fix”. I don’t think this shopping service is for Boomers – but perhaps just not this one!
Glad to hear your experience, thanks for the update!
I’ll check — sorry, thought I included those. $20 puts and $35 calls, if I remember correctly.
Any strong feelings out there about investing directly in StartEngine.com or using the site to make investments in the pre-IPO space. Kevin O’Leary, Shark Tank’s Mr. Wonderful is a new pitchman for the firm.
I think making investments in those kinds of “pre-IPO” platforms should be considered a hobby, not investing — the amount of disclosure and oversight is very limited in every case I’ve seen, and the lack of liquidity is a huge barrier… particularly for companies that in most cases will NEVER have a liquidity event (a public listing or a takeover). Most companies either hobble along for years, or fade away… if you want to try to sift the winners from the losers in those bunches it might be a fun effort, but unless you’re really putting in the time to get to know management and the business (which will take a lot of work), it’s essentially like betting at the racetrack. With no idea whether or not the horses even have four legs.
OK, it’s possible I’m more cynical about these “private investment/crowdfunding” groups than is warranted… but cynicism is a powerful tool in keeping your money safe.
Can someone explain to me how an ordinary person with an Interactive and Choice Trade account and a modest capital of about 20 thousand dollars can participate and buy shares before the IPO. Until recently, this was only for accredited investors with over $ 300,000 in annual income or over $ 1 million in the account.
I just couldn’t listen to Teeka’s webinar and figure out how or where you can buy shares of private companies before the IPO. Except through some funds where they determine when and at what price you can sell them, which is why you can almost always earn only cents. Also, where and how can I buy warrants from some companies if they offer them and not just their shares
If anyone is so kind and understood I will be happy to inform me here or at BGMilitaryUnion@gmail.com
Good luck to all
It depends on what you mean by “pre-IPO” — people buy and sell chunks of private companies all the time, like friends investing in your new restaurant, and most of those never become publicly traded companies.
In the past few years, the SEC has made it easier for
Smaller private companies to raise money in a more organized way, from people they don’t know — these are often called private placements or Reg A offerings. They still file with the SEC in most
Cases, so you can find the offering details in the Edgar database, but they’re somewhat limited in how much they can promote themselves. Some coordinate with newsletters, like Palm Beach or Money Map, to recruit investors… others use crowd-vesting websites.
These companies often want to go public or get a big market listing, but there is no guarantee that they ever will. The price is set by the company, which is trying to raise as much money as possible.
Even if I found a story like this that I really liked, I would never consider putting more than 1% of my portfolio in it. These are not the hot young growth stories, for the most part, they’re the companies who think it’s worthwhile to raise money from uneducated investors $1,000 or $5,000 at a time, in exchange for letting those investors dream about being the next Peter Thiel.
The other “tease” you’ll hear is to buy blank check
Companies who have agreed to merge with a private company, which can sometimes be a good idea but the SPAC competition means a lot of companies will probably go public who don’t really “deserve” to.
And there are a few publicly traded venture companies, like SuRo Capital (SSSS), who buy into mature private companies in the few years, they hope, before an IPO.
Any thoughts after SFIX results and the resulting massive correction? To me this looks like an opportunity for the long-term
Will update my thoughts in some detail tomorrow. I wouldn’t call it a massive correction, the stock is now back where it was three weeks ago — I expect investors just got excited going into earnings and drove the shares up to a new 52-week high, but then were a bit disappointed by the results.
I see there are IPOs released for ZOOMINFO and AIRBNB. Are they priced too high?
I have an option to purchase Airbnb at the IPO price, since they have offered shares to Airbnb hosts.
What does the Brain trust think about this purchase?