[COMMENT: This is another very good example of why we should not be committing a large chunk of our investing portfolio to just one stock. No matter how convincing or compelling the story from the company, there is a possibility that something might go wrong.] (24 May 2018, AFR, p52, by Jonathan Shapiro) ‘ “Think … Continue reading
(19 May 2018, AFR, p30, by Tony Featherstone) ‘The rise of billion-dollar software stocks is forcing investors to decide if a new generation of tech unicorns will keep soaring or if their valuations are fantasy. The tech-listings boom is spawning stars. There are 17 tech unicorns – an industry term used to describe tech companies … Continue reading
(15 May 2018, AFR, p18, by Jonathan Shapiro) ‘Shares in wealth manager Evans Dixon made a solid debut on the Australian stock exchange, with investors pushing the stock up 8.4 per cent to close at $2.71. The shares listed at $2.50 per share, and traded as high as $2.80 on light trading volumes. Around 50,000 … Continue reading
[IPO Update (with no recommendations or advice).] (14 May 2018, AFR, p16, by Carrie LaFrenz) ‘Wealth adviser Evans Dixon Group has received backing from business magnates Kerry Stokes and Robert Millner, executive chairman of fund manager Washington H. Soul Pattinson, for its $170 million initial public offering. The company, which was formed by the merger … Continue reading
(11 May 2018, AFR, p27, by Simon Evans) ‘Ailing retailer Godfreys has warned of an alarming 27 per cent tumble in sales in the past two weeks as it revealed a hefty profit downgrade of at least 30 per cent after a disastrous switch in its television advertising approach away from discount sales. The vacuum … Continue reading
[COMMENT: Here is a salutary lesson for investors who purchase shares in a company, including supposed blue chip stocks. In the case of Myer, anyone who didn’t spot the declining share price over a long period, or who decided to hold on and prayer for a turn around, if the share parcel value has declined … Continue reading
(5 March 2018, AFR, p3, by: Alice Uribe, Jonathan Shapiro, Brad Thompson) ‘Large venture capital funds have hit out at the Australian Stock Exchange’s relationship with technology companies in the wake of revelations about Big Un Limited and GetSwift. Daniel Petre, one the country’s best-known tech investors via his fund AirTree Ventures, said cases like Big … Continue reading
[COMMENT: This revealing news story is an eye opened about how some companies finance their operations. Investors beware.] (20 February 2018, AFR, p16, by Jonathan Shapiro) ‘Big Review TV, a subsidiary of ASX listed Big Un Limited, granted security over its assets to FC Capital, the small business lender that is advancing funding to facilitate the … Continue reading
(20 February 2018, AFR, p1, p13, by Michael Bailey) ‘GetSwift shares plummeted 55 per cent on Monday after the logistics software maker told the market that less than half its announced contracts had progressed to a revenue generating stage. After last trading at $2.92, before their suspension on January 22, GetSwift’s shares closed on Monday … Continue reading
(31 January 2018, AFR, p20, by Michael Bailey) ‘Funds raised by initial public offerings on the Australian Stock Exchange plummeted 46 per cent in 2017, and a trend toward greater numbers of smaller raisings will continue in early 2018, a report has found. The analysis of IPOs by professional services firm HLB Mann Judd found … Continue reading
[COMMENT: This article is giving us a heads up regarding the IPO pipeline in the year ahead. This indicates something about the health of the economy. However, some people prefer not to participate in IPOs – read more about the reasons why in my Share Market Toolbox.] (29 January 2018, AFR, p18, by Joyce Moullakis) … Continue reading
(9 December 2017, AFR, p23, by Jenny Wiggins) ‘Wagners’ shares got off to a strong start on the Australian Securities Exchange after its $197 million initial public offering, with the Queensland construction group’s stock soaring 25 per cent on its first day of trading. The stock, which listed at $2.71, opened at $3.31 and traded … Continue reading
[COMMENT: Now this is an interesting article for investors and traders, because it describes the possible underlying actions that some people might undertake to move share prices – compelling reading.] (5 December 2017, AFR, p13, by Misa Han) ‘Bell Potter trader Damien Rodr bid a fraction higher to drive up the share price of a … Continue reading
[COMMENT: It is very unfortunate for any investors still stuck holding this stock, who might have “believed in the company…”. But the real truth is that astute investors and traders would have watched the chart from week to week, and noticed when it fell below its IPO price (of $2.75 on 10th December 2014). This … Continue reading
(30 November 2017, AFR, p26, by Simon Evans) ‘It started with high hopes by raising $30 million and listing on the ASX last December, after acquiring eight different businesses in the booming 4WD and SUV parts and accessories industry. But less than a year later, Automotive Solutions Group (ASX:4WD) has put up the white flag. … Continue reading
(21 November 2017, The Age, Business, p22, Patrick Hatch) ‘Investors in the baby goods retailer Baby Bunting (ASX:BBN*) have thrown a tantrum and pushed the stock below its listing price after the company slashed its profit guidance in light of heavy competitor discounting. Baby Bunting on Monday said it expected to report earnings before interest, … Continue reading
(17 November 2017, The Age, p11, Elizabeth Knight) ‘The spin-out of digital real estate company Domain from parent Fairfax Media has surpassed expectations, immediately adding value to shareholders in both companies. Fairfax shares were trading at $1.06 earlier this week before adjusting for the Domain separation, which saw them fall around 30 per cent on … Continue reading
(17 November 2017, AFR, p19, by Max Mason) ‘Smiling from ear-to-ear, the man known as The Cat rang the bell at the Australian Securities Exchange in Sydney at noon on Thursday and officially opened trade in shares of real estate classifieds and services business Domain. Describing the moment as “the most nerve-racking and exciting day … Continue reading
(7 November 2017, AFR, p30, by Larry Schlesinger) ‘McGrath suffered one of its biggest share price falls on Monday after the beleaguered real estate agency issued a profit warning due mainly to a collapse in off-the-plan apartment sales in its key project marketing division and said it would make significant job cuts.’ Read more at … Continue reading
(7 November 2017, AFR, p27, by Philip Baker) ‘Two years ago when McGrath, one of Australia’s largest real estate companies, listed on the ASX, there were a few jokes doing the rounds that surely it was a sign the property market bubble was about to burst. Why else would a real estate agent go public, … Continue reading
(12 October 2017, AFR, p25, by Simon Evans) ‘An extraordinary boardroom stoush has erupted at ailing ASX firm Automotive Solutions Group (ASX:4WD), with two separate shareholder meetings requisitioned to remove different directors from warring factions feuding over the downward spiral of the company. The toxic atmosphere in the boardroom has spilled into the public domain … Continue reading
(9 October 2017, The Age, BusinessDay, p18, John McDuling) ‘Before Atlassian became Australia’s undisputed innovation poster child, there was Freelancer. For a while – in the days before anyone really talked about the “gig economy” – the online outsourcing marketplace was considered the great hope of the nation’s tech industry.’ <snipped…> ‘Back in 2013, Freelancer listed … Continue reading
(6 October 2017, AFR, p26, by Chiara Remondini and Tommaso Ebhardt) ‘Initial public offerings are booming in Milan as investor demand for Italian assets drive company listings to the highest level in at least a decade. Pirelli & Co’s return to the market on Wednesday makes it the 30th company to join the Italian Stock Exchange this year, … Continue reading
(6 October 2017, AFR, p25, by Jessica Sier) ‘The husband-and-wife team behind the nation’s first listed daigou business enjoyed a $9.6 million paper windfall on Thursday as shares in AuMake Australia nearly tripled on its ASX debut. AuMake, headed by Joshua Zhou and Lynn Zheng, raised $6 million from institutional and private investors to fund its growth strategy.’ ‘AuMake Australia has built a … Continue reading
(2 October 2017, The Age, BusinessDay, p18, Clancy Yeates) ‘The market for new company listings in Australia is suffering its weakest period in half a decade, with investors taking a cautious view towards initial public offerings and several planned major floats being called off in favour of trade sales. The value of new initial public … Continue reading
(13 September 2017, AFR, p19, by Simon Evans) ‘Agricultural technology company CropLogic had a difficult start to life as an ASX-listed company on Tuesday but chief executive Jamie Cairns expects it will be a “reasonably temporary” blip. CropLogic uses a range of “internet of things” devices and equipment embedded in paddocks and fields to help … Continue reading
[COMMENT: The conclusion in this newspaper article is very similar to what I have reported previously on my Toolbox IPO web page, along with many share price charts to graphically show how an IPO stock performs over time.] (9 August 2017, The Age MONEY supplement, p2, Scott Phillips, The Motley Fool) ‘You’ve heard the hype. … Continue reading
[COMMENT: I never encourage participation in IPOs of any sort, based on personal experience many years ago, and observations since then – see more details here. But this news story might be of interest to keen investors and traders.] (26 July 2017, AFR, p22, by James Frost) ‘Mining minnows and medical marijuana stocks have been … Continue reading
[COMMENT: Any reasonable trader/investor who likes to protect their capital would surely have had a Stop Loss exit ready for this stock (in fact all stocks), and actually exercised it. Since listing in December 2015, the share price has seen a continual downtrend (and we know from Dow Theory that a confirmed trend is likely … Continue reading
[COMMENT: Most technical analysts who might have been holding this stock in late 2016, would have spotted the downtrend in late 2016, which continued into 2017, and they most likely sold their position to lock in profits and preserve their capital. See the chart below.] (14 June 2017, AFR, p19, by Simon Evans) ‘In just … Continue reading
