[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
[COMMENT (from a Technical Analyst): This news story certainly seems to be a good one for IPOs. but look at the price chart. After running nicely from June 2016 to a peak in Oct/Nov, the share price fell away, then trended higher again to a new peak in March 2017. But since then, the share … Continue reading
(8 June 2017, AFR, p26, by Misa Han) ‘This year’s biggest technology IPO to date is not a start-up, but a 15-year-old software company that has ruled out being the next Atlassian any time soon. As revealed by Street Talk in May, cloud human resources software company ELMO [ASX:ELO] will be listing on the ASX to raise $25 … Continue reading
(7 June 2017, The Age, BusinessDay, p23, Darren Gray) ‘Shares in Australia’s biggest dairy processor Murray Goulburn plummeted by 14.5 per cent to 73.5¢ on Tuesday, hitting all-time lows. The stock opened at 85¢ on Tuesday and went downhill fast, closing at a level that is barely half of what it was trading at last … Continue reading
(30 May 2017, AFR, p18, by Simon Evans) ‘Vacuum cleaner retailer Godfreys has downgraded its profit outlook after tough trading conditions and its 98-year-old major shareholder has provided a new $30 million loan at better terms than one which had been in place from the Commonwealth Bank of Australia. The company’s shares are now trading … Continue reading
(24 May 2017, The Age, BusinessDay, p22, Patrick Hatch) ‘Online fashion retailer SurfStitch is facing a $100 million class action launched on behalf of shareholders whose investments have been wiped out by the troubled company’s plunging share price. ‘ <snipped…> ‘SurfStitch listed at $1 in late 2014 and was trading at a record high of … Continue reading
(18 May 2017, AFR, p15, by Sue Mitchell) ‘Online retail juggernaut Amazon has claimed its first scalp – the $1.5 billion float of office products chain Officeworks – before even setting up shop in Australia. Wesfarmers abandoned plans for an initial public offering of Officeworks on Wednesday after fund managers made it clear they were … Continue reading
(17 May 2017, AFR, p8, by John Stensholt) ‘Frank Costa’s Costa Group (ASX:CGC) has been a rare success: a successful ASX listing involving private equity. The fruit and vegetable company, which Costa and Paine Schwartz Partners floated in July 2015, has been trading close to its April record high and its success has given Financial … Continue reading
(16 May 2017, AFR, p22, by John McDuling) ‘One of the sorriest episodes in the recent wave of start-up mania in Australia is drawing to its conclusion. And there is much to be learned from it. Late on Friday, in a classic case of taking out the trash when you think nobody’s looking, Gold Cost … Continue reading
(4 May 2017, AFR, p17, by Simon Evans) ‘The chief executive of Bingo Industries, Daniel Tartak, says the fact his own personal holding is worth around $105 million on paper after listing on the ASX on Wednesday won’t change him one bit. “It doesn’t change things. I’m still relatively young and I’ve got a long … Continue reading
[COMMENT: This is a news story about IPO results in recent years and implies that investing in an IPO might be profitable. However, as everyone knows, it pays to be careful, do due diligence, and weigh up all the facts, and seek the advice of a properly trained and qualified investment professional before making an … Continue reading
(30 March 2017, AFR, p25, by John Stensholt) The Australian Financial Review looks at how the wealthy are making money for our column: How the rich invest. ‘Frank Costa has played an integral role in a rare event on the ASX: a successful float involving private equity. His fruit and vegetable giant, Costa Group, which … Continue reading
(23 March 2017, AFR, p17, by James Frost) ‘The listed investment company established by stock pickers at Fat Prophets got off to an encouraging start on low volumes after making its ASX debut on Wednesday morning. After opening at 11am, the Fat Prophets Global Contrarian Fund made its debut with a cross trade at $1.50 … Continue reading
(13 March 2017, AFR, p15, by Tess Ingram) ‘More mining and exploration companies could list on the ASX in the first quarter of 2017 than in the whole of 2016 as commodity price stability encourages investors to revisit more speculative stocks. So far this year the ASX has hosted eight materials initial public offerings. Another eight … Continue reading
(7 February 2017, AFR, p23, by Yolanda Redrup) ‘Tech stocks that listed on the ASX in 2016 have comfortably outshone their counterparts from other sectors, with stronger returns for shareholders in their first year of public life. A new report from OnMarket BookBuilds, a platform that gives retail investors access to initial public offerings, found … Continue reading
(24 January 2017, AFR, p32, by Larry Schlesinger) ‘Shares in struggling real estate group McGrath fell more than 17 per cent on Monday morning to just 71¢ – a third of their IPO value – after the company said low real estate listings and a loss of more than 10 per cent of its in-house sales agents meant … Continue reading
(24 January 2017, AFR, p20, by Simon Evans) ‘Apollo Tourism and Leisure’s chief executive says the motorhome industry is excited about the election of Donald Trump as US President. The company has a fleet of 600 motorhomes in the United States and chief executive Luke Trouchet says the entire industry is happily anticipating the prospect … Continue reading
(23 January 2017, TheAge, BusinessDay, p21, Simone Ziaziaris) ‘An influential fund manager is warning investors to be wary of recently listed companies when it comes to stock picking. Investment management firm Allan Gray Australia says companies that floated in the last three years disappointed in 2016, with none securing a spot in the 10 best … Continue reading
(17 January 2017, AFR, p23, by Sue Mitchell) ‘Kogan.com founder Ruslan Kogan is contemplating his second profit upgrade in three months after better than expected demand for products such as TVs, drones and power tools in the lead-up to Christmas. Mr Kogan has attributed strong trading in November and December to better…’ Read more at … Continue reading
(24 December 2016, The Age, BusinessDay, p3, Brian Robins) ‘Shaver Shop has emerged as the latest dud sharemarket float of 2016, warning investors that weak pre-Christmas sales will leave earnings short of the forecast included in its prospectus which was issued mid-year. On Friday, its shares slumped 14.7 per cent to 70¢, ending down by a third … Continue reading
[COMMENT: This article contains information about the performance of public floats in 2016, and the IPO outlook for 2017. You might also find my IPO review page worth reading…] (22 December 2016, AFR, p19, by Tony Featherstone) ‘The initial public offering (IPO) market is poised to rebound in 2017 as blockbuster IPOs return, corporates divest … Continue reading
[COMMENT: This article includes a table of the performance of 25 recent IPOs since their own listing date, from the best performer (AfterPay 174%) to the worst (Silver Heritage -52.5%). More than half of these companies have returned a negative share price performance todate. This confirms my own earlier views about how IPOs are too … Continue reading
(8 December 2016, AFR, p30, by Larry Schlesinger) ‘McGrath has marked a torrid first year as a publicly listed vehicle but its chief executive Cameron Judson is depending on a turnaround in the performance of its 10 company-owned former Smollen Group offices. McGrath shares ended Wednesday up 1.7 per cent at 90¢ having floated a … Continue reading
(2 December 2016, AFR, p28, by James Frost) ‘Direct insurance business Freedom Insurance made an encouraging start to life as a listed company after closing at 37.5c or up 7.1 per cent from its initial public offer price of 35¢ a share, compared with the benchmark ASX 200’s 1.1 per cent gain. The insurance play, … Continue reading
(17 November 2016, AFR, p22, by Simon Evans) ‘High-end car dealership company Autosports Group (ASX:ASG) gave 500 of its employees $1000 of free shares ahead of its solid debut on the Australian sharemarket, with chief executive Nick Pagent saying he feels “energised” by the group becoming a public company. Autosports operates 25 car dealerships in the eastern … Continue reading
(17 November 2016, AFR, p21, by Yolanda Redrup) ‘Wealth management software firm Bravura Solutions (ASX:BVS) has blamed general market volatility in the aftermath of Donald Trump’s US election victory as the cause for the firm’s shaky start to life on the ASX. The company ended the day 13.9 per cent lower at $1.25, after already being … Continue reading
(14 November 2016, AFR, p21, by Yolanda Redrup) ‘When independent designers marketplace Redbubble listed in May, it looked like it would be one of the tech success stories of the year. Established by a well-known tech entrepreneur, with a strong management team, and an easy to understand product, early signs pointed to it being a … Continue reading
(9 November 2016, The Age, BusinessDay, p27, Carolyn Cummins) ‘Charter Hall Long WALE REIT made a subdued debut on its first day of trade as investors absorbed the new recut version that is now valued at $827 million and an increased longer term yield metric. The original float valued at $1.12 billion was pulled in October after institutional investors … Continue reading
(8 November 2016, AFR, p13, by Julie-anne Sprague) ‘Ingham’s chief executive Mick McMahon has rejected criticism the nation’s biggest chicken producer could fall foul of its biggest customers, which include Woolworths. Ingham’s debuted on the Australian Securities Exchange on Monday, initially slipping below its $3.15 issue price before closing up 2.2 per cent at $3.22, … Continue reading
(27 October 2016, AFR, p24, by Simon Evans) ‘A company that makes a high-tech carbon material used by the United States Navy, aerospace firm Northrop Grumman and the commercial spaceflight arm of Sir Richard Branson’s Virgin Group soared on its ASX debut. CFOAM, which makes the high-strength carbon at a plant in West Virginia in … Continue reading
