Bubbles and heartbreak: why I avoid IPOs...

Here’s the CEO pumping the stock on Twitter yesterday in an act of mild desperation:

You need to be very careful when CEOs start behaving like this. As we discovered in our work on Shopify, a stock that has fallen 75% this year can look capable of dropping a whole lot more.
Ghost Mail readers are no strangers to the Magic Markets podcast. What you may not be aware of is that we have a subscription service (R99/month and no minimum subscription period – a genuine bargain) called Magic Markets Premium. Each week, we cover a different global stock with a podcast and report. We cover all the important stuff: bull vs. bear case, overview of management, competitor analysis, financial analysis, technical indicators for traders and a fundamental view on the valuation. I’m beyond proud of what we deliver to investors in this product. It’s genuinely institutional quality at retail pricing. If you are interested in taking your investment knowledge to the next level, visit the Magic Markets website to subscribe.
With this global flavour today, I decided to share an article with you on why I avoid IPOs. An IPO is the process of a company coming to market for the first time to raise capital. In this article, you’ll learn why these can be dangerous.
Sticking with the tech theme, I also wrote on Net1’s quarterly earnings. With a loss over the past nine months of USD30 million, shareholders are hoping that the acquisition of Connect Group will be a game changer. Learn more here.
Of course, make sure you get your daily helping of Ghost Bites as well! It’s the best breakfast you can possibly have and you’ll always find the link to the latest edition below.
Here’s the latest update on the rand from Wichard Cilliers, Head of Market Risk at TreasuryONE:
“As we expected, the rand traded sideways for most of the day ( R15.98 - R16.05) and we expected some volatility after the US CPI number. After the CPI number surprised to the top side, coming out at 8.3% vs the expected 8.1%, we saw the rand knee-jerked along with the US dollar as the Rand touched R16.1700 post the CPI release. Since then, the market has calmed down, and we are back to levels before the CPI print, with the rand currently looking settled at R16.0400. We still believe that the rand is over-extended, and with the swiftness of the knee-jerk following the release of the US CPI number, we think that the rand could end the week on the front foot.”
To understand more about how the current conditions impact the gold price, read this update that the team at TreasuryONE published yesterday morning (before the CPI print).
And on a personal note – thank you for the almost endless comments and feedback we’ve received this week. Every single comment has either been positive feedback or constructive criticism, both of which are appreciated. We are still finding our feet with this new publication and we welcome all comments.
Have a wonderful day!