IPO

An IPO is an Initial Public Offering. This is the initial sale of stock to the public from private investors and holders of the company. There are several reasons why a company would issue stock to the public. Publicly traded stock allows the company to offer shares in mergers and acquisitions, easing the mechanism in purchasing other companies and lowering the cost. Publicly traded stock also allows the company to offer incentives to employees, by giving shares of stock. The greater exposure and publicity also help retain and attract talented employees and management. The value of a company is also higher compared to when it’s private. This is because increased levels of liquidity and transparency are more attractive to investors, who will allocate a higher multiple for the company’s value. The biggest downfall to a company issuing stock to the public is greater scrutiny from investors, as all financial records are made public. This comes in the form of an increase in legal and marketing costs, plus time spent with analysts and other investors explaining the inner workings of the company.

Zoe’s: The Hot Restaurant IPO Investors Should Be Following

By Monday, November 24, 2014

Hot Restaurant IPO Investors Should Be FollowingIf there is one group of stocks that always seems to pay at the speculative end of the market, it’s restaurant stocks. And one company aggressive investors really need to have on their radar now is Zoe’s Kitchen, Inc. (ZOES).

Everything is a cycle, of course, but many money managers have sung the praises of this specific sector for y… Read More

NASDAQ, Russell 2000 Signaling Buying Opportunity Ahead?

By Monday, March 31, 2014

Why I'm Concerned About the Stock Markets Near-TermFolks, I’m beginning to get somewhat concerned about the stock market in the near-term. I’m not saying the stock market is going to crash, but there are some technical indications of a possible correction or adjustment in the near-term.

The S&P 500 recently traded at a new intraday record, but the key stock market indices hav… Read More

My Top Stocks in the Mobile Gaming Sector

By Friday, March 28, 2014

Why I Believe There Are Better Mobile Gaming Investments Than King Digital If you have ever played the Candy Crush Saga game on your mobile device, you’d realize that the game, along with others like Flappy Birds, are merely a mobile phenomenon that could easily fade away over time once the addiction washes away, based on my stock analysis.

Yet for King Digital Entertainment plc (NYSE/KING), the maker of CaRead More

The Great Social Media Stock Bubble of 2014

By Wednesday, February 26, 2014

Allan Greenspan Be Bearish on the Stock Market Right NowA few days ago, I woke up to news that reminded me of the “Dot-com Boom” of the late 90s and early 2000. I’m sure you remember those days—the days when any company with “.com” attached to it received a lot of attention….and a high stock price. Investors bought these stocks without any concern for non-existent revenues; fo… Read More

Top Three Tech-Based IPOs to Watch for This Year

By Tuesday, February 25, 2014

Where to Watch for This Year's Top IPOsThe last big initial public offering (IPO) in this country was the debut of social media play Twitter, Inc. (NASDAQ/TWTR), which has returned some staggering gains for its initial investors, in spite of an extremely obscene valuation assigned by the stock market. (Read “Two More Internet Stocks to Watch.”)

Yet in spite of the co… Read More