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IPO Warriors IPO Preview for
June 13 – June 17, 2022

IPO Warriors IPO Preview for June 13 – June 17, 2022

June 14, 2022

After a couple weeks of relative optimism, including a string of recent low-float IPOs that ran hard on positive press releases, last Friday’s abominable CPI data sent the market into yet another tailspin that has slammed shut the door on any prospective mainstream IPOs for the near future, and even managed to put the breaks on a few low-float IPOs that were slated for this week.

While any IPO brave enough to debut in this market is going to raise suspicion for a possible Stealth debut, last week’s debacle of a debut with PEV demonstrates the importance of gauging the pre-debut imbalance for confirmation of a potential string of halts to the upside, and we were able to avoid catastrophe by recognizing the symptoms of a broken IPO in advance of the debut: high volume on the opening print, debut price below the IPO price, and a sell-side imbalance.

This week brings us two IPOs, one of which has not appeared on any IPO calendars and has me thinking we might see a potential stealth setup: the other from an underwriter whose brought us a ripping IPO that produced one of the more dramatic multi-day LPX runs we’ve seen in a while (yes, I’m talking about AERC). Be sure to read through this newsletter to the upcoming LPX section provided by https://twitter.com/tradingfitgirl following the IPO breakdowns for this week for more potential runners this week.

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This Week’s IPOs:

  • Heart Test Laboratories (HSCS) – June 15, 2022 | 1.75M Units

  • Lytus (LYT) – June 15, 2022 | 3.25M Shares

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Ok, Let’s jump in:

Heart Test Laboratories (HSCS) – June 15, 2022 | 1.75M Units
Price Range:
$4.50 – $5.50
Offering Size:
$9M
Shares Outstanding:
8.11M

Industry: Medical Devices

Overview:
This company is developing a cardiac diagnostics test with enhanced ECG functionality that incorporates artificial intelligence to analyze data and produce analysis that currently requires more invasive testing procedures to replicate. They are raising capital to bring the product through the FDA approval process, and the units contain a single share and single warrant: both of which will be tradable immediately following the IPO.

Considerations: The underwriter on this deal is The Benchmark Group – the same outfit that brought AERC to market on the day before the Thanksgiving holiday: a memorable IPO that opened for trading at $40 after pricing the IPO at $10, and proceeded to rip over $100 through a series of halts. But this offering comes with a warrant attached, and that almost never produces the kind of ripping open that we hope to spot on these debuts. The company itself is pre-revenue, and the market is clearly still recovering from the knockout blow that was delivered with last week’s CPI data, so I’m not sure there will be much enthusiasm for any IPOs simply based on the company or product being offered.

Growth Numbers: (none: pre-revenue)

Baseline Financials:
(none: pre-revenue)

Notes from the S-1:

Underwriters:
The Benchmark Group

IPO Classification:
Low Float IPO

Recent Similar IPOs: AERC BEAT

Trading Strategy:
My approach to this one is to sit back and not touch it… UNLESS it debuts with a tiny volume and a healthy debut premium. And even then, I don’t think I can justify taking a high-risk position on it.However, I will certainly be watching this one down the road for a possible LPX play… low float, with warrants and a 501(k) FDA approval catalyst on the horizon could set up an AERC-style run.

Brand Name Recognition:
Low.

Debut Trade Conviction Level:
Low.

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Lytus Technologies (LYT) – June 15, 2022 | 3.25M Shares
Price Range:
$4.75 – $6.75
Offering Size:
$17M
Shares Outstanding:
37M

Industry: Streaming/Telemedicine

Overview:
We covered this Indian Company’s proposed IPO back in mid-April when it was being underwritten by Aegis Capital, and were not too thrilled with the underlying facets of the company at that time: streaming content and telemedicine offerings with relatively small customer bases compared to major competitors in each respective space.
On April 21, 2022 I wrote:
We haven’t seen all that many Indian IPOs in US markets: perhaps because India has it’s own robust stock market, so it’s interesting that this one is going live on the NASDAQ. The company claims roughly 8M active customers for its content streaming services (which in a country of 1.4B people, is basically nothing), and is planning to provide tele-health services in America through its Global Health Services Inc company. They are actively acquiring companies in the tele-health segment, but as those of us who have followed Doximity (DOCS) since it’s IPO, most physicians are already hooked into that platform. Their growth numbers are not really worth paying much attention to, as they had limited operations in 2019 and so 2020 comparisons once they started generating revenue were obviously impressive statistically, but cannot be considered to correlate to any future growth projections. Having said that, they did generate $12.3M in gross profits on $29M in revenue in 2020 with a gross margin of 42%.”

Considerations: What’s changed since the April 2022 F-1 filing is the underwriter, the size of the deal, the removal of attached warrants to the IPO shares, and the market conditions. I don’t think anyone can argue that market conditions have materially improved since April, and removing the warrant makes this a more interesting IPO as far as retail traders buying the debut goes, but why the shift in the underwriter? We saw PEV switch out Roth/Maxim/EF Hutton for Aegis, who dumped shares on WeBull traders and the resulting IPO was a thing of horror – so I’m wondering what made this deal doable for Spartan that was unattainable for Aegis. Rumors are that the newly assigned underwriter was able to bring in a buyer that is willing to soak up a substantial piece of the pie, and that allocations to brokerage desks were fairly limited. The company itself is not really what’s going to determine whether this debut provides any upside potential to take wins off the debut: but if the dynamics behind the opening trades get manipulated, we could be looking at a potential runner.

Financials:

Growth Numbers (unaudited):
– Revenue Growth: –
24% for 2021 vs 2020
– Total Comprehensive Income:
+1890% for 2021 vs 2020

They did, however, post positive operating profit in 2020, along with positive net income, despite negative cash flow from operations.

But let’s be honest here – we’re not analyzing this company for a long-term investment, and any volatility in this IPO debut is not going to be based on retail interest in the fundamental business of this company.

Notes from the F-1:
– “
We intend to use the net proceeds received from this offering for the following: An aggregate of $9.05 million for the acquisition of customers (ownership of approximately 1.8 million customers) and 51% of the shares in a licensed cable company.”

Underwriters: Spartan Capital Securities

IPO Classification:
Low Float IPO

Recent Similar IPOs: OST AUST

Trading Strategy:
I’m very suspicious that.this one could be a ‘Stealth IPO’ – given how it snuck onto the calendar and rumors about ultra-low allocations on direct brokerages. As always, I’ll be watching the pre-debut indication for a premium to the IPO price in the $11-16 range, a strong buy-side imbalance, and low volume. If I see this setup, I’ll likely take a position on the debut, remembering not to go excessively large as this will push the price up on a low-volume debut and spoil the upside potential. If I don’t get the setup I’m looking for, I’ll just walk away from it.
Day 2 runs off poor Day 1 performances have not materialized on recent low-float busts, so that play is not something I’m trying to position myself in right now.

Brand Name Recognition:
Low.

Debut Trade Conviction Level:
Medium

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Lockup Period Expiration (LPX) Watch:

Most IPOs are subject to a 180 day lockup period before insiders and shareholders who owned shares of a company prior to the IPO can sell their positions. Typically, the dilutionary effect of this event will cause a stock price to drop, as supply increases without any fundamental changes in the value of the underlying company. Many investors will wait for LPX before starting a long term position in a company.

LPX dates June 13th to June 17th

90-Day, 120-Day and 180-Day LPX:

Akanda Corp (AKAN)
Type:
IPO
LPX Date: 13-Jun-22

LPX Period: 90 Day
IPO Date: 15-Mar-22
IPO Price: $4.00

Exercise Price: 125% list price equal to $5.00
Secondary Offering Exercise Price: n/a

Notes: 90 day LPX has 2m avail to use, also has 180 day
– Reference 424B4 Filed 16-Mar-22

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Fresh Grapes, LLC (VINE)
Type:
IPO
LPX Date:
13-Jun-22
LPX Period: 6-month
IPO Date: 14-Dec-21
IPO Price: $10.00

Exercise Price: 125% list price equal to $5.00
Secondary Offering Exercise Price:

Notes: 180-day LPX has 10m sh avail to use

– Reference 424B4 Filed 14-Dec-21

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Genenta Science S.p.A. (GNTA)

Type: IPO

LPX Date: 09-Jun-22
LPX Period: 6 Month
IPO Date: 15-Dec-21

IPO Price: $11.50
Exercise Price: 125% list price equal ton $14.375

Notes: 180 day 2.4m sh avail to use

– Reference 424B1 Filed 15-Dec-21

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Bionomics Ltd (BNOX)

Type: OTC Uplist
LPX Date: 14-Jun-22
LPX Period: 6-month
IPO Date: 16-Dec-21
IPO Price: $12.35
Exercise Price: none listed

Secondary Offering: Uplist has open offerings while on OTC board

Notes: 180 day 1.6m sh avail to use

– Reference 424B4 Filed 17-Dec-21

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IPOs that hit 180-day LPX dates in the last 30 days, but have not run to EPs

Check date if there’s a secondary offering, as these take longer to run.

BEAT – EP $6
BJDX – EP $7
HTCR – EP $6.25
STRN – EP $4.81 – $5.18 *has secondary
TIVC – EP $6.25

For a full list of IPOs and Uplist LPX dates and video reviews https://tradingfitgirl.net/always-learning for the direct Spreadsheet Link

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IPO Warriors IPO Preview for June 6 – June 10, 2022

IPOWarriors IPO Preview for June 6 – June 10, 2022

June 7th, 2022

Another week with a light IPO calendar, with just a single IPO slated to debut: but with an ultra-low float, no warrants, and an underwriter that has given us some volatile stealth setups in the recent past, at least we have some excitement to look forward to.

On top of that, we’ve seen low-float stocks take the spotlight again this week, with recent low-float IPO AERC, with just over 4M shares in the float, embarking on a monster two day run that saw the stock rally from around $2.50 at the start of the week to a high of $15.25 by Tuesday’s after-hours session. JAN followed suit on Tuesday, with a jump from $2.50 at the close on Monday, to touch $5.00 on Tuesday’s headline; closing at $4.07 with high hopes that it will reproduce AERC’s type of Day 2 fireworks.

So with low-float in focus, keep an eye out for PR drops on any recent low-float IPOs this week: it won’t take much of a catalyst to send them running, and if we see JAN’s momentum carry over into Day 2, then significant headlines can be traded across multiple days.
With that in mind, I’m extra-excited about this week’s low-float IPO debut.

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SHOUT OUTS:

  • Lockup Expiration Section: We are welcoming Aly Angel to the IPO Warriors newsletter starting this week. Many of you know her as @tradingfitgirl on Twitter: for those who don’t, she is a highly analytical swing trader with a focused strategy around trading recent IPOs around their lockup expiration (“LPX”). Her strategy is relatively low-risk with high upside potential, and worth understanding if not directly playing them. She has produced in-depth guides that can be purchased on her website here.

  • Support Dog Rescue Efforts in Ukraine: Simply by streaming the songs on TheSound.com’s Spotify account, you can generate revenue for projects that help dog rescue efforts. Our current support is going towards PawsofWar.org

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This Week’s IPOs:

  • Phoenix Motors (PEV) – June 8, 2022 | 2.5M Shares

    —> LIVE STREAMING PEV on June 8, 2022 at 9:40 AM EST here:

    https://www.youtube.com/watch?v=wGxKEIZhZfk

    Subscribe to the IPO Warriors YouTube Channel and set your reminder to join me and Aly Angel for a live stream trading session for Phoenix Motors (PEV) – should be volatile, if nothing else!

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Ok, Let’s jump in:

Phoenix Motors (PEV) – June 8, 2022 | 2.5M Shares
Price Range:
$7.00 – $9.00
Offering Size:
$21M
Shares Outstanding:
20M

Industry: Electric Vehicles

Overview:
This company produces integrates electric drive systems into light and medium duty trucks: namely the Ford F450, and sells EV chargers to the residential market, along with leasing services. The company is profoundly not profitable have sold only 104 EVs in the history of the company, with financials that are about as bad as you could imagine: it really looks like the kind of company that missed out on the EV craze of 2020 and sounds so shady that it would have fit right in with taking the SPAC route alongside NKLA. This IPO was originally filed in November 2021, and is technically a spin-off from SPI Energy Co – with Roth Capital, Maxim, and EF Hutton lined up as the underwriters, and the S-1 was refiled in February 2022 at 4M units that included a share and a warrant.
Recently, Prime Number Capital took over as the sole underwriter, and removed the warrant while reducing the float to just 2.5M shares.

Considerations: This is one of those IPOs that is just so bad on the surface that I can’t help but be intrigued. The company is losing money at an accelerating pace, and EV stocks have taken a hit along with most growth/non-profitable stocks over the past three months. Dumping Roth/Maxim/EF Hutton as underwriters for Prime Number Capital certainly sets off the alert for a potential Stealth IPO play: for those of you who remember, MHUA and OST both were represented by Prime Number, and offered volatile debuts with significant win potential off debut buy-ins.
One point to consider is that PEV has been available on WeBull for pre-order allocation for about a week: so was OST, and allocations were generous, but not fully filled… so I’ll be keeping an eye on how much of my allocation request gets filled to gauge what kind of effect a large retail position might have on the opening move once this one starts trading.
I doubt the fact that this is an EV company is going to have much of an impact on the demand for this IPO – but the fact that the float is just 2.5M shares is likely to be enough to draw attention to this debut. Given the focus on low-float trades this week, the timing in this regard is perfect: so if the underwriter/insiders pulls their usual shenanigans, and restricts the volume on the opening debut – then we should see some highly volatile moves in the opening minutes: halts almost certain, though which direction they move will be determined by the initial opening price and how many retail traders dump their shares early.
Another hint that we may be looking at a Stealth IPO setup, is the heavy presence of Chinese executives in both Phoenix Motors and the parent company that is spinning off this IPO… (most Stealth IPO setups involve direct or indirect ties to China).

Growth Numbers:
– Revenue Growth:
-55% for 9 months ending September 31, 2021
– Gross Profits:
-56% for 9 months ending September 31, 2021
– Gross Margin:
-9% for 9 months ending September 31, 2021
Baseline Financials:
– Cash Flow:
negative – expanding (getting worse)
– Net Income:
negative – expanding
– Operating Profit:
negative – expanding

Notes from the S-1:
180 days after the date of this prospectus due to contractual obligations and lock-up agreements between the holders of these shares and the underwriters. However, the underwriters can waive the provisions of these lock-up agreements and allow these stockholders to sell their shares at any time, provided their respective one-year holding periods under Rule 144 have expired.
So like, get ready for the float to balloon whenever the underwriter feels like it’s reached a high enough point to dump stock.

Underwriters:
Prime Number Capital

IPO Classification:
Low Float (potential Stealth setup)

Recent Similar IPOs: OST MHUA

Trading Strategy:
IF this turns out to be a Stealth IPO setup, then we’re almost certainly going to see a strong debut premium: with an initial opening trade likely to be priced anywhere from $13 to $45. If we see the lower end of this spectrum with a buy-side imbalance, then I’ll be inclined to add to whatever allocation I receive and trade this aggressively across all my accounts.
If this indicates below the IPO price – which is expected to come in at $7 – then perhaps I completely misread this one, and it would then be up to day traders to pump this one purely based on speculation and low-float: which might be good for a halt at some point, but will be a

Brand Name Recognition:
Low.

Debut Trade Conviction Level:
High.

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Lockup Period Expiration (LPX) Watch:

Most IPOs are subject to a 180 day lockup period before insiders and shareholders who owned shares of a company prior to the IPO can sell their positions. Typically, the dilutionary effect of this event will cause a stock price to drop, as supply increases without any fundamental changes in the value of the underlying company. Many investors will wait for LPX before starting a long term position in a company.

LPX dates June 6th to June 17th

90-Day, 120-Day and 180-Day LPX

Marygold Companies (MGLD)
Type:
OTC Uplist
LPX Date:
08-Jun-22
LPX Period: 90 Day
IPO Date: 10-Mar-22
IPO Price: $2.00

Exercise Price of Common Shares: 120% list price equal to $2.40
Secondary Offering Exercise Price:

Notes: ticker ran to EP in pre-market on June 3rd. Also states a 180-day LPX for Dir & Ofc
– Reference 424B4 Filed 11-Mar-22

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Akanda Corp (AKAN)
Type:
IPO

LPX Date: 13-Jun-22
LPX Period: 90 Day
IPO Date: 15-Mar-22
IPO Price: $4.00

Exercise Price of Common Shares: 125% list price equal to $5.00
Secondary Offering Exercise Price:

Notes: ticker has 2m sh out of LPX at 90 days and has a leak-out for remaining
– Reference 424B4 Filed 16-Mar-22

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The Arena Group (AREN)
Type: OTC Uplist

LPX Date: 09-Jun-22
LPX Period: 4 Month
IPO Date: 09-Feb-22
IPO Price: $8.25
Exercise Price of Common Shares: $10.00

Notes: 90- and 120-day LPX dates

– Reference 424B4 Filed 14-Feb-22

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Creative Medical Technology (CELZ)
Type: OTC Uplist

LPX Date: 06-Jun-22
LPX Period: 6 Month
IPO Date: 06-Dec-21
IPO Price: $4.13
Exercise Price of Common Shares: 110% of IPO equal to $5.1875
Secondary Offering Exercise Price: S-3 effect 19-May-2022 15m sh @ $2.25 EP $2

Notes: ticker hit EP at day 112, has secondary

– Reference 10Q Filed 13-May-22, 424B3 Filed 20-May-22

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Cingulate Inc. (CING)
Type:
IPO

LPX Date: 06-Jun-22
LPX Period: 6 Month
IPO Date: 08-Dec-21
IPO Price: $6
Exercise Price of Common Shares and warrants: $6 & $7.50

Notes: 424B4 20-Apr-22 selling sh for warrant exercise at $6

– Reference 10Q 12-May-22, 424B4 20-Apr-22

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NeuroSense Therapeutics Ltd. (NRSN)
Type:
IPO

LPX Date: 07-Jun-22
LPX Period: 6 Month
IPO Date: 09-Dec-21
IPO Price: $6 sold as units
Exercise Price of Common Shares and warrants: $6 equal 100% of the IPO price per Unit

Notes: ticker hit EP’s at day 102
– Reference 20F 14-Apr-22

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IPOs that hit 180-day LPX dates in the last 30 days, but have not run to EPs

Check date if there’s a secondary offering, as these take longer to run.

AERC, 23-May-22, currently walking up
STRN – EP $4.81 – $5.18 *has secondary
BJDX – EP $7 & $10
BEAT – EP $6
TIVC – EP $6.25

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For a full list of IPOs and Uplist LPX dates and video reviews https://tradingfitgirl.net/always-learning for the direct Spreadsheet Link

Live Streaming PEV on Wednesday, June 8, 2022 at 9:40 AM EST

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IPO Warriors IPO Preview for May 30 – June 3, 2022

IPO Warriors IPO Preview for May 30 – June 3, 2022

May 29, 2022

With a shortened week and a nearly empty IPO calendar, it stands to reason that any IPO that went live this week would pique my attention for possible shenanigans.

As luck would have it, we’ve got a couple low-float IPOs slated to go live this week, and as goes for any low-float IPOs on the calendar these days, I’m on the look-out for clues of a Stealth IPO setup: connection to China, somewhat nondescript or shady sounding business, and of course, an underwriter among the usual suspects of running stealth deals. Well… let’s see what we find out on these.

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This Week’s IPOs:

  • Zhong Yang Financial Group (TOP) – June 1, 2022 | 5M Shares

  • bioAffinity Technologies (BIAF) – TBD | 1.5M Shares

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Play a Song – Save a Dog Updates

We’ve released a new album to help dog rescue efforts:

”SleepytimePiano”

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LISTEN ON SPOTIFY

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Ok, Let’s jump in:

Zhong Yang Financial Group (TOP) – July 1, 2022 | 5M Shares
Price Range:
$5.00 – $6.00
Offering Size:
$27M
Shares Outstanding:
TBD

Industry: Financial

Overview:
This company operates financial services out of Hong Kong, and advises clients on securities, futures contracts, and asset management. Ok, so clear ties to China and if there has ever been a low-float Chinese IPO capable of knowingly manipulating the volume of shares trading on their debut and the subsequent halts that ensue, it would have to be this one.

Considerations: So… let’s recap some key points:
– Debuting on an abbreviated market holiday week…
– Clear ties to China…
– Priced at $5-6 on 5M shares…
– The underwriter is Univest Securities: the underwriter involved with TIRX, UPC, QLI, and other shady low-float Chinese IPOs and secondary offerings.

I’m gonna go with the hypothesis that this is a Stealth IPO, and will approach the debut accordingly.

Growth Numbers: don’t really matter

Baseline Financials:
also, not relevant to the play we’re looking for here.

Notes from the F-1:

Underwriters:
Univest Securities | Valuable Capital Limited

IPO Classification:
Stealth IPO

Recent Similar IPOs: OST VEDU

Trading Strategy:
The setup to look for on this IPO is the debut price and volume. If we see the volume of the opening print around or below 120,000 shares, that’s a good sign: lower is better. The debut price we’re looking for is around or under $16.00… anything above that starts getting ultra-risky. There’s a pretty good chance that platforms like WeBull will flub this ticker entirely on the debut, or will not be showing the pre-debut indication. Playing this blindly is pretty risky, but a limit order at $16.00 has traditionally been sufficient to get you into the plays that work, and keep you out of the plays that debut at such a premium that they offer no upside play.
If we do see a debut around $15, expect halts up to the mid-$20’s and possibly higher. The reversal will come in the form of halts the other way, and likely will baseline from there, but things get speculative from there. Often, we’ve seen reversals that establish a baseline, and proceed to climb into an EOD run that exceeds the initial spike highs. But the reverse is just as likely, and you have to expect that at some point this stock is returning to below it’s IPO price, so if you’re in a position to take substantial profits, do it. If you load up on the initial debut, consider selling out of your position in three or four trades: on the beginning spike, on an EOD run, and hold a small piece for an early Day 2 spike if the setup going into the close of Day 1 looks strong.
I won’t chase if I miss the opening spike, and will take profits without regret if I manage to get in on the debut and ride my position up through a couple halts.

Oh, and if the debut price is something ridiculous, like $20+, it’s not worth the risk: we’ve seen these debut as high as $45 and come crashing down from there. Don’t do it.

Brand Name Recognition:
Low.

Debut Trade Conviction Level:
High.

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bioAffinity Technologies (BIAF) – TBD | 5M Shares
Price Range:
$6.75
Offering Size:
$10M
Shares Outstanding:
TBD

Industry: Financial

Overview:
This is biotech diagnostics company developing oncology screening products, with a lead test in the FDA pipeline for lung cancer screening. Their tests boast the potential to reduce the number of invasive procedures (biopsies) for patients during the diagnostic phase. They also develop targeted therapies through a subsidiary: OncoSelect Therapeutics.

Considerations: I mean, this is a biotech, albeit with a low-float, so not something I expect to unfold as a Stealth IPO, though we’ve now seen a string of lesser-publicized ultra-low float IPOs debut into a couple of halts to the upside, so perhaps an opening debut trade is worth chancing for a single halt upwards.

Growth Numbers: Still in development mode

Baseline Financials:
N/A

Notes from the F-1:

Underwriters:
WallachBeth Capital

IPO Classification:
Low Float Biotech

Recent Similar IPOs: OKYO STSS

Trading Strategy:
This one will likely follow the pattern we’ve seen in most of the recent ultra-low-float IPOs that have either been dumped right away or spike up through one or two halts to the upside before going into free-fall in the opposite direction. Determining whether it will boost upwards off the debut seems to be foreshadowed in the pre-debut indication metrics: whereas a buy-side imbalance, lower volume of paired shares, and a debut premium to the IPO price indicate the possibility of upside moves; a sell-side imbalance, higher volume, and a pre-debut price indication below the IPO price tend to result in a drop right from the opening trade.
If I do see the setup I like in the pre-debut indication on this one, I won’t tempt more than a single halt to the upside, almost certainly exiting any position I have right out of the first halt (if we get one).

Brand Name Recognition:
Low.

Debut Trade Conviction Level:
Medium.

+++

Lockup Period Expiration (LPX) Watch:

Provided by Aly Angel:
– Twitter:
https://twitter.com/tradingfitgirl
– Website (with Trading Guides): https://tradingfitgirl.net/trading-guides

Most IPOs are subject to a 180 day lockup period before insiders and shareholders who owned shares of a company prior to the IPO can sell their positions. Typically, the dilutionary effect of this event will cause a stock price to drop, as supply increases without any fundamental changes in the value of the underlying company. Many investors will wait for LPX before starting a long term position in a company.

LPX dates May 31st to June 10th

Imperial Petroleum Inc. (IMPP)
Type:
IPO
LPX Date:
06-Jun-22
LPX Period: 6 Month
IPO Date: 06-Dec-21
IPO Price: $6.25

Exercise Price of Common Shares: 500k for Underwriter EP $1.37
Secondary Offering Exercise Price: 20-Jan-22, 9.6m sh units @ $1.25 &

19-May-22, 72m sh units @ $0.55

Notes: ticker ran to EP around the 90 day LPX, this is a secondary and should be treated as an offering play. Lower EP’s are the guideline
– Reference 20F 29-May-22, 6K 19-May-22


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Creative Medical Technology (CELZ)

Type: OTC Uplist
LPX Date: 06-Jun-22
LPX Period: 6 Month
IPO Date: 06-Dec-21
IPO Price: $4.13
Exercise Price of Common Shares: 110% of IPO = $5.1875
Secondary Offering Exercise Price: S-3 effect 19-May-2022 15m sh @ $2.25 EP $2

Notes: ticker hit EP at day 112, has secondary

– Reference 10Q 13-May-22, 424B3 20-May-22

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Cingulate Inc. (CING)
Type:
IPO

LPX Date: 06-Jun-22
LPX Period: 6 Month
IPO Date: 08-Dec-21
IPO Price: $6
Exercise Price of Common Shares and warrants: $6 & $7.50

Notes: 424B4 20-Apr-22 selling sh for warrant exercise at $6

– Reference 10Q 12-May-22, 424B4 20-Apr-22

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NeuroSense Therapeutics Ltd. (NRSN)
Type:
IPO

LPX Date: 07-Jun-22
LPX Period: 6 Month
IPO Date: 09-Dec-21
IPO Price: $6 sold as units
Exercise Price of Common Shares and warrants: $6 equal 100% of the IPO price per Unit

Notes: ticker hit EP’s at day 102
– Reference 20F 14-Apr-22

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Incannex Healthcare (IXHL)

LPX Date: 02-Mar-22
LPX Period: 3 Month
IPO Date: 31-May-22
IPO Price: $9.38
Exercise Price of Common Shares: no EP listed

Notes: has 12-month LPX, only watching for 90-day under general rule

(12-month LPX for officers and directors)
FDA news:
clinical study report is anticipated to be released in June 2022

– Reference F-1/A 7-Dec-21, 6K 16-May-22

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For a full list of IPOs and Uplist LPX dates and video reviews https://tradingfitgirl.net/always-learning for the direct Spreadsheet Link

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IPO Warriors IPO Preview for May 16 – May 20, 2022

IPO Warriors IPO Preview for May 16 – May 20, 2022

May 17, 2022

After a barrage of IPOs over the last few weeks, including a couple of mainstream IPOs that managed to hold their own, and a handful of high-flying debuts of the lesser-known, low-float nature from the usual class of underwriters who generally bring us a mixed bag of offerings, we have hit a week where the calendar offers little in the way of IPO trades.

An uplisting already snuck onto the market with little fanfare in the form of SOBR, and failed to deliver much of a pop, and once unflappable Boustead Securities delivered yet another busted debut in the form of ASNS: threatening to tarnish their once seemingly magical ability to produce low-float IPOs that ran simply based on the underwriter’s cache alone.

Looking more deeply into the undercurrent of the market, we can see that weakened demand for fresh IPO offerings is a reflection of general apathy in the market. Once highly anticipated as inevitable IPO candidates, companies like Stripe, Epic Games, Databricks, Airtable, and others that were highly anticipated just a few months ago seem to have missed the boat on the opportunity to have raised capital from the public markets on highly inflated revenue multiples that continue to compress with each announcement from the Fed related to interest rates and inflation.

Having said that, when the market is weak, those IPOs that do debut become focal points for day traders, and when combined with the right combination of low float and ‘strategic’ allocation of shares, provide opportunities for tremendous upside potential. We’re keeping an eye on all IPOs to look for these golden opportunities (AUST), and watching out for the pitfalls to avoid (EDBL| ASNS).

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This Week’s IPOs:

  • OKYO Pharma (OKYO) – May , 2022 | 625k Shares

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Ok, Let’s jump in:

OKYO Pharma (OKYO) – May 17, 2022 | 625k shares
Price:
$4.00
Offering Size:
$2.5M
Shares Outstanding:
22M

Industry: Biotech

Overview:
This has been rescheduled from last week, and reduced from a potential $10M offering of 961k shares at a mid-point price target of $5.50. The company itself is a British pre-clinical biotech with a pipeline of candidates that address inflammatory eye diseases and ocular pain: examples include a treatment for dry eye that is poised to enter Phase I testing.

Considerations: “The float on this one is so low that it appears to be almost begging day traders to pile in, and the price certainly invites speculation, so it could be interesting just on the setup alone.”
That’s what I wrote last week, and now they’ve decreased their float by roughly 30% since then, so it appears that they don’t really care as much about raising money from this IPO as they do about simply getting their stock listed on the NASDAQ at any cost.

According to the prospectus, their lead candidate could skip Phase I safety trails and proceed to Phase 2 by the end of 2022: which would present a clear catalyst for an upside move if (when) this stock drops from the IPO price.

There’s enough sketchiness in the F-1 filing to make me take pause and wonder if this one is going to set up a constrained float debut is forced through multiple upward halts until it reaches a ludicrous price point where insiders can offload their shares ahead of a normal lockup period.

Growth Numbers: none

Baseline Financials: none

Notes from the F-1:
We were originally incorporated in the British Virgin Islands as a British Virgin Islands Business Company on July 4, 2007 under the BVI Business Companies Act 2004 with company number 1415559 under the name Jellon Enterprises, Inc.. Our legal and commercial name was changed to Minor Metals & Mining, Inc. on October 24, 2007, to Emerging Metals Limited on November 28, 2007, to West African Minerals Corporation on December 9, 2011, and to OKYO Pharma Corporation on January 10, 2018. On March 9, 2018, shareholders approved the cancellation of our AIM listing and migration to Guernsey.
I mean, this sounds super sketchy, but perhaps as a shell company it makes sense?
Our website address is
www.okyopharma.com. The reference to our website is an inactive textual reference only and the information contained in, or that can be accessed through, our website is not a part of this registration statement.
So what you’re saying is, you have a website, but the information on the website is possibly not accurate?


Underwriters:
Think Equity

IPO Classification:
Ultra Low Float ( about as low a float as I’ve seen), and now it’s even lower.

Recent Similar IPOs: LCFY AERC AUST

Trading Strategy:
This is such a low float that it will be interesting to watch where it opens. If it gets pumped up to a small debut premium, it could be ready to run. Last week I stated that an opening print above $10 would be unlikely to sustain a further run, but now I’m not so sure. It would be tough to justify a debut buy much higher than that with anything other than gambling money, but if retail allocations are minimal (like, less than 10 shares) and opening volume is notably low, then this cold setup a pump situation like AERC.

Brand Name Recognition:
Low.

Debut Trade Conviction Level:
Moderate but interested.

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Lockup Period Expiration (LPX) Watch:

Provided by Aly Angel:
– Twitter:
https://twitter.com/tradingfitgirl
– Website (with Trading Guides): https://tradingfitgirl.net/trading-guides

Most IPOs are subject to a 180 day lockup period before insiders and shareholders who owned shares of a company prior to the IPO can sell their positions. Typically, the dilutionary effect of this event will cause a stock price to drop, as supply increases without any fundamental changes in the value of the underlying company. Many investors will wait for LPX before starting a long term position in a company.

LPX for the Week of May 16, 2022

Snow Lake Resources Ltd. (LITM)
– LPX Date: May 18, 2022
– LPX Period: 6 Month
– IPO Date: November 19, 2021
– IPO Price: $7.50
– Exercise Price of Common Shares: 110% of IPO = $9.90
– Secondary Offering Exercise Price: no exercise price stated – Effective 7 April, 2022
No lock-up on secondary, registered as ‘selling shareholders’
Notes: also has 12 mo lock-up for directors and officers
– Reference 424B3 dated 11 April 2022

Advanced Human Imaging Ltd (AHI)
– LPX Date: May 18, 2022
– LPX Period: 6 Month
– IPO Date: November 19, 2021
– IPO Price: $10.50
– Exercise Price of Common Shares: wx $5.52 and Rep wx $6.29
– Secondary Offering Exercise Price: no secondary
Notes: Original units separable immediately and warrants could be sold at $5.52
– Reference 424B4 11 November 2021

For a full list of IPOs and Uplist LPX dates and video reviews

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NOTE: this is not financial advice, and I am not a financial advisor: this information is just my opinion and is for informational purposes only. I may have or take positions in the equities mentioned in this article in the next 72 hours. Trading equities is risky. Do your own research,and trade your own trade.

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IPO Warriors IPO Preview for May 9 – May 14, 2022

IPO Warriors IPO Preview for May 9 – May 14, 2022

May 10, 2022

Over the past week, the market suffered it’s worst stretch since the beginning of the pandemic, yet IPO debuts continue to provide upside trading opportunities: especially mainstream IPOs willing to endure stormy market conditions, and low-float IPOs that debut under constrained volume.

Spotting debut trade opportunities in this market relies heavily on watching the pre-debut indication pricing and volume, where a high debut premium and low volume on the opening trade are the key indicators for low-float, lesser known IPOs, a more modest debut premium with a buy-side imbalance is a positive signal for any mainstream IPOs.

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SHOUT OUTS:

  • Lockup Expiration Section: We are welcoming Aly Angel to the IPO Warriors newsletter starting this week. Many of you know her as @tradingfitgirl on Twitter: for those who don’t, she is a highly analytical swing trader with a focused strategy around trading recent IPOs around their lockup expiration (“LPX”). Her strategy is relatively low-risk with high upside potential, and worth understanding if not directly playing them. She has produced in-depth guides that can be purchased on her website here.

  • Support Dog Rescue Efforts in Ukraine: Simply by streaming the songs on TheSound.com’s Spotify account, you can generate revenue for projects that help dog rescue efforts. Our current support is going towards PawsofWar.org
    We are also trying to monetize our YouTube Channel: so if you have a moment, please SUBSCRIBE here and take a moment to stream our video!

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This Week’s IPOs:

  • Hanover Bancorp (HNVR) – May 11, 2022 | 1.36M Shares

  • SaverOne (SVRE) – May 11, 2022 | 1.6M Shares

  • WYTEC (WYTC) – May 11, 2022 | 3.7M Shares

  • Bright Green Corp (BGXX) – May 11, 2022 | 158M Shares

  • SOS Hydration (SOSH) – May 12, 2022 | 1.8M Units

  • ProFrac Holding (PFHC) – May 12, 2022 | 16M Shares

  • Intrinsic Medicine (INRX) – May 12, 2022 | 4.16M Shares

  • Actelis Networks (ASNS) – May 13, 2022 | 3M Shares

  • Innovative Eyewear (LUCY) – May 13, 2022 | 1.54M Shares

  • OKYO Pharma (OKYO) – May 13, 2022 | 961k Shares

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Ok, Let’s jump in:

Hanover Bancorp (HNVR) – May 11, 2022 | 1.36M Shares
Price Range:
$21.00 – $23.00
Offering Size:
$36M
Shares Outstanding:
7.19M

Industry: Local Bank

Overview:
This is a regional bank serving the New York City metro area projected to pay a 1.8% dividend. Other than that, it’s simply a regional bank IPO.

Considerations: It’s a regional bank IPO – these are generally fairly priced and rarely offer much volatility on their debut, so I typically don’t trade them. Having said that, low-float IPOs have been targets for trading groups, and at 1.36M shares, the float is small enough to be considered ultra-low float. But with a share price above $20.00, it’s not really the setup that pumpers like to play.

Underwriters:
Stephens Inc.

IPO Classification:
Local Bank

Recent Similar IPOs: NSTS

Trading Strategy:
I don’t trade these – if you want to, then wait for a dip below VWAP and wait with a limit order on the buy side (don’t buy at market or at the Ask). Then sell at VWAP. Most likely a $0.20 winner type of play. Like I said, these rarely move much.

Brand Name Recognition:
Low.

Debut Trade Conviction Level:
None.

+++

SaverOne (SVRE) – May 11, 2022 | 2.5M Shares
Price Range:
$5.16
Offering Size:
$14M
Shares Outstanding:
5.18M

Industry: Mobile App / Automotive Software

Overview:
This was rescheduled from last week, with an increased float from 1.38M shares to 2.5M shares along with a price reduction from $7.22 to $5.16: while this makes the price a bit more accessible and reduces the potential for a dramatic drop from the debut (let’s say it will drop to $3.00 regardless, then it’s a reduced difference from the new price to this price). It also diminishes the attractiveness of this as an ultra-low float, though by all standards, the float is still minimal enough to potentially get a pop at some point. The company is an Israeli technology system that restricts the use of mobile devices by drivers in vehicles. It’s an uplisting from the the Tel Aviv Stock Exchange, so I’m not gonna spend too much time discussing this one, since uplistings tend to be a different type of setup than most pure play IPOs.

Considerations: This is an uplisting, and has been rescheduled from last week. The software seems like something consumers would only use if forced to: either by an employer or federal regulations. I may watch this one in case it sells off hard on Day 1, and look for a Day 2 spike: it has been adjusted from an ultral-low float offering to what is still a very low float, and if it gets ignored and trades down at a low volume, then this would provide the right conditions for accumulation on Day 1 and a pump on Day 2 or 3.

Growth Numbers:
– Revenue Growth:
+53% for 2021 on $145k in total revenue
– Net Profits:
+198% for 2021 on $52k total gross profits
– Gross Margins: 35%


Baseline Financials:
– Cash Flow:
negative
– Net Income:
negative
– Operating Profit:
negative

Notes from the F-1:


Underwriters:
ThinkEquity

IPO Classification:
Ultra Low Float, Uplisting

Trading Strategy:
I’ll be focused elsewhere on Wednesday, but will keep an eye on this for a potential entry if we see a massive drop that persists throughout the end of Day 1 and look for a possible Day 2 setup.

Brand Name Recognition:
None.

Debut Trade Conviction Level:
Low

+++

WYTEC (WYTC) – May 6, 2022 | 3.89M Units
Price Range:
$4.25
Offering Size:
$18M
Shares Outstanding:
18M

Industry: 5G Networking

Overview:
Another rescheduled IPO from last week, this time around they’ve nailed down the offering price at $4.25. This company provides 5G network deployment technology for small cell systems that offer coverage within 1000 feet of a tower. They target their solutions to mobile virtual network operators in the cable industry to bolster their cellular and mobile offerings with WiFi/data/VOIP services.

Considerations: This company is not profitable, not producing positive revenue, and has negative baseline financials across the board. The float isn’t that low, relative to others we have on the docket for Friday, and I’m not sure there will be much day-trading interest on this one. However, we have seen quite a bit of interest in recent low-float IPOs in the past week, and Tuesday saw quite a few recent low-float IPOs make rebound runs (OST, HLVX, JCSE, RVSN…) so maybe the trend can bleed into some interest in a debut play, but that’s a long shot.

Growth Numbers:
– Revenue Growth:
-11.7% in 9 months ending September 30, 2021
– Gross Profits:
+26% in 9 months ending September 30, 2021
– Gross Margin:
15%

Baseline Financials:
– Cash Flow:
negative
– Net Income:
negative
– Operating Profit:
negative

Notes from the S-1:

Underwriters:
EF Hutton

IPO Classification:
Low Float IPO

Recent Similar IPOs: MTEK

Trading Strategy:
This one has units and the float isn’t that low: so it would need social buzz to send it on a debut run. Given that Boustead has an IPO offering on Friday, I think low-float IPO scalpers will be focused on that one instead of WYTC. I’m not particularly interested in this one until it bottoms out as a possible LPX move when the lock-up expires.

Brand Name Recognition:
None.

Debut Trade Conviction Level:
Low

+++

Bright Green Corp (BGXX) – May 11, 2022 | 158M Shares
Price Range:
~$4.00
Offering Size:
$7.6M
Shares Outstanding:


Industry: Cannabis

Overview:
This is a pre-revenue company that sells cannabis products in the US. They are still waiting on federal licenses, which potentially could be a huge catalyst for the stock, assuming those are granted, but it’s a risky move and ultimately a very crowded space. This is a direct listing, so the company itself will not be raising any funds from the IPO.

Considerations: This is a direct listing with a really high float and not a very big offering, so I’m curious to see where the shares price at. Given the float and direct offering, it’s not something I want to get in on. Cannabis stocks aren’t in vogue right now, and the market is pretty flooded, so I don’t see any reason to rush into this one on Day 1. It could be an interesting play if it bottoms out before dropping any headlines, but with a triple-digit float, it doesn’t really look like something I’d usually trade.

Growth Numbers: It has no revenue

Baseline Financials:
– Cash Flow:
negative
– Net Income:
negative
– Operating Profit:
negative

Notes from the S-1:


Underwriters:
EF Hutton

IPO Classification:
Direct Listing

Recent Similar IPOs: Can’t really think of any direct listings in the weed space with this kind of float.

Trading Strategy:
Stay away.

Brand Name Recognition:
Low.

Debut Trade Conviction Level:
Low

+++

SOS Hydration (SOSH) – May 12, 2022 | 1.8M Units
Price Range:
$4.50 – $6.50
Offering Size:
$13.6M
Shares Outstanding:
7.49M

Industry: Health Supplement / Sports Drink

Overview:
Yet another IPO rescheduled from last week (this is at least the third time it’s been on the calendar). This is company has developed a hydration product based on the WHO’s rehydration formula with enhancements that they claim improves absorption and performance of the product. They do have a retail presence in large retail chains such as CVS, Walmart, and Whole Foods, along with online sales on sites like Amazon.com and Target.com. So this is like, actually a real company with revenue and a product that generally has very high customer ratings for its performance. Whether the market is ready to be enthusiastic about buying into the debut is another question.

Considerations: Rescheduled from last week (and the week before then and the week before that): not much has changed – except for a slightly larger float: having been increased from 1.36M units to 1.8M units, and it is still offered for allocation request on WeBull, so it seems they must be struggling to fill their order book.

Last week I wrote,
“I’ll have to defer to social media throughout the week to get a sense as to whether retail traders are likely to get behind this one at all. With just 1.36M shares (plus an equal number of warrants), and a limited number of total shares outstanding, this one could get pumped simply as an ultra-low float IPO. But I’m not sure it’s sexy enough to warrant a debut buy: so I’ll be watching the pre-debut indication and most likely, just waiting to see if it drops into an attractive price range for a subsequent rebound.”

Given the attention STSS no doubt stirred up with its Day 3 run, this one may get played out. The float is tiny, and food stocks are in vogue right now, so maybe I should pay attention to the debut on this a little more. If we see strong buy-side demand perhaps it can run.


Growth Numbers:
– Revenue Growth:
+54% in the 9 months ending September 30, 2021
– Gross Profits:
+42% in the 9 months ending September 30, 2021
– Gross Margin:
37% in the 9 months ending September 30, 2021

Baseline Financials:
– Cash Flow:
negative
– Net Income:
negative
– Operating Profit:
negative

Notes from the S-1:

Underwriters:
Maxim Group

IPO Classification:
Ultra-Low Float

Recent Similar IPOs: OTLY

Trading Strategy:
I’ll be paying attention to social media this week, as sometimes a cult-brand IPO gets enough support from its target consumer base and loyal customers to run it: think DNUT, BIRD, BROS, etc.
The float is so low that it may not drop as hard as others, especially given that it appears to have at least moderate brand name recognition. If it doesn’t perform well at all on Day 1, it could be a very interesting Day 2 setup, as this one actually could benefit from an overnight media cycle. I believe many of its loyal customers won’t be aware of the IPO until it the day after it debuts and headlines announce its IPO performance: so a Day 2 run is very possible.


Brand Name Recognition:
Moderate

Debut Trade Conviction Level:
Not high, but not completely disinterested. Seems like it could get enough support from a loyal customer/fan base to give it some legs.

Live Debut Streaming: https://www.youtube.com/watch?v=kY6V6_Hclgo

+++

ProFrac Holding (PFHC) – May 12, 2022 | 16M Shares
Price Range:
$21.00 – $24.00
Offering Size:
$441.6M
Shares Outstanding:
34.9M

Industry: Oil/Energy

Overview:
So this one actually qualifies as a mainstream IPO, with a top-tier underwriter and it’s in the energy/oil space, which is one of the few sectors that has been holding it’s ground in this market due to pressure on oil prices in relation to the war in Ukraine and sanctions on Russian supply. This company provides services to upstream oil companies related to fracking, which has received a lot of bad press in regards to environmental impacts, but may be unavoidable in the current political/economic environment.

Considerations: Given demand for gas and oil, this is one appears to be perfectly timed to current geopolitical issues. I would compare this one to the EE IPO which debuted back on April 13, 2022 though perhaps this company is a bit more competitive in their respective field. The overall market is still reeling, and so any mainstream IPO that debuts in these conditions is going to have to provide a strong case for institutional investors to consider anchoring the deal, and the float is not all that large for a traditional IPO. I don’t really expect retail traders to pile into such an IPO on the debut, so this one may end up pricing below range and opening or dipping below that, in which case I’d be looking for a reversal as a possible trade setup.

Growth Numbers:
– Revenue Growth:
+43% for 2021 vs 2020
– Gross Profits:
-63.8% for 2021 vs 2020
– Gross Margin:
25.8%

Baseline Financials:
– Cash Flow:
positive
– Net Income:
negative – improving
– Operating Profit:
negative – improving

Notes from the S-1:

Underwriter:
JP Morgan

IPO Classification:
Mainstream

Recent Similar IPOs: EE

Trading Strategy:
I feel that JP Morgan tends to leave some meat on the bones for retail traders to get some action on the debut, but will take care of their IPO buyers first. Given the current market conditions, this one is likely to price at the low end of the range, if not lower to ensure IPO buyers don’t take a bath right off the debut. From there, we’ll have to see how much demand there is from retail: a slight debut premium with a strong buy-side imbalance would be an indication for a possible debut entry. Anything else, and waiting for a dip down to the IPO price would be a reasonable trade setup.

Brand Name Recognition:
Low.

Debut Trade Conviction Level:
Moderate.

+++

Intrinsic Medicine (INRX) – May 12, 2022 | 4.16M Shares
Price Range:
$5.00 – 7.00
Offering Size:
$25M
Shares Outstanding:
11.3M

Industry: Biotech

Overview:
This is a pre-clinical biotech that is in the process of developing treatments for gastrointestinal diseases such as IBS-C and IBS-D. They are not yet in Phase I testing for any candidates.

Considerations: Not super-low float, and it’s a biotech, so I’m not gonna try and trade this one. If it drops hard enough on Day 1 and Day 2, maybe it becomes a target for a pumper, but there are other lower-float candidates on the calendar, so I’m not sure I’ll take a chance on this one.

Growth Numbers: pre-clinical, so no revenue

Baseline Financials:
– Cash Flow:
negative – improving
– Net Income:
negative – improving
– Operating Profit:
negative – improving

Notes from the S-1:
– “This prospectus covers the possible resale by the Selling Stockholders identified in the table below of up to 13,615,470 shares of our common stock”
So basically, up to 13.6M additional shares may be sold by existing share holders immediately after the IPO… which means the ‘low-float’ of the IPO is basically negated, and any run in the share price could be sold-off immediately.

Underwriters:
Spartan Capital and Revere Securities

IPO Classification:
Low-float Biotech

Recent Similar IPOs: BLTE… except the additional shares clause makes this one unique in a not very appealing way.

Trading Strategy:
I simply don’t like that clause that allows existing shareholders to sell off over 3x the float. Perhaps Spartan finds a way to pump this one along the lines of how they managed to squeeze ALZN from a $5.00 pricing to a $29.00 debut that sold off from the open: it now trades at $0.97. Think it’s a setup I’d rather avoid altogether.

Brand Name Recognition:
Low.

Debut Trade Conviction Level:
Low.

+++

Actelis Networks (ASNS) – May 13, 2022 | 3M Shares
Price Range:
$4.00
Offering Size:
$16M
Shares Outstanding:
15.6M

Industry: IoT (Internet of Things)

Overview:
Also rescheduled from last week, this is a network solutions company with a proprietary hybrid fiber-copper technology that provides a flexible solution for areas regardless of whether they can easily be reached with fiber-optic solutions. But that’s not really why anyone is paying attention to this one: it’s a Boustead deal, and they tend to figure out ways to run their offerings, so people will watch, some will buy off the debut, and if we get anything other than volatility off the debut we will be surprised.

Considerations: Well, it’s a low-float Boustead deal. That’s generally enough to bring attention to this one. While it was reschedule from last week, reports I’ve received from traders with direct brokerage accounts is that it was due to some questions from the SEC: which may sound a bit dodgy on the surface, is perhaps better news for those hoping for a ‘Boustead Special’ than lack of retail demand.

Growth Numbers:
– Revenue Growth:
+0.2% for 2021 vs 2020
– Gross Profits:
-20.3% in 2021 vs 2020
– Gross Margins: 46%


Baseline Financials:
– Cash Flow:
negative
– Net Income:
negative
– Operating Profit:
negative

Notes from the F-1:


Underwriters:
Boustead Securities

IPO Classification:
Boustead

Trading Strategy:
I’ve put in an allocation request for this one on WeBull – if we get a debut premium, I’ll probably sell on the debut. I’m not so sure this one has much upside as a debut trade. Boustead has delivered a couple duds recently, and the runners have had clear ties to Asia or other foreign entities (AKAN was tied to Lesotho). This one might be one where I just sell any allocation I get if given a chance to take profits, and otherwise put this one on watch for a longer term LPX play.
Having said that, it is a Boustead deal, and it does have a low-float, so it’s not crazy to think that retail traders who have become accustomed to Boustead delivering rips off the debut pick up on this one and send it into at least one halt with an open to the upside. I just feel like it’s pretty risky to hold any longer than that.


Brand Name Recognition:
None.

Debut Trade Conviction Level:
Low

+++

Innovative Eyewear (LUCY) – May 13, 2022 | 1.54M Units
Price Range:
$5.50 – $7.50
Offering Size:
$10M
Shares Outstanding:
7.7M

Industry: Wearable Technology

Overview:
This company produces glasses that feature microphones and open-ear audio technology that connect to devices via bluetooth. Dubbed as ‘smart audio glasses’ – they sell under the brand name “Lucyd” (https://www.lucyd.co) and are endorsed by a number of lesser known professional athletes such as WNBA player, Monique Billings. The IPO is selling Units that consist of one share of common stock and 2 warrants (a Series A and Series B warrant).

Considerations: As far as the product goes, I dunno, kinda bulky and gimmicky in my opinion. Are these the next GoPro or Beats-by-Dre? I doubt it. Perhaps they can upgrade to further advancements in the future: augmented reality would be a logical progression, but in the current format, I don’t think they are interesting enough to generate enough buzz to warrant a debut play. The ultra-low float plus warrants makes this an interesting setup for a possible Day 2 run, but that’s about the only angle I can see on this one other than a longer term LPX play: this one does have a low float even when taking the total shares outstanding into account.

Growth Numbers:
– Revenue Growth:
1136% for 9 months ending September 30, 2021
– Gross Profits:
up to $86k in 2021 from -$17k in 2020
– Gross Margin:
20%

Baseline Financials:
– Cash Flow:
negative
– Net Income:
negative
– Operating Profit:
negative

Notes from the S-1:
– Series B warrants expire within 1 year, and the company does not intend to list them on any exchange.
– Lucyd Ltd. will control roughly 65% of the stock upon completion of the offering


Underwriters:
Maxim Group

IPO Classification:
Ultra Low Float

Recent Similar IPOs: LCFY

Trading Strategy:
This one doesn’t really look like a debut trade to me: don’t see any reason to believe it’s a Stealth IPO, and don’t expect it to get much retail interest. On top of that, market conditions are bordering on panic mode at the moment, so I’m expecting very low volume on this one and generally downward movement. This might setup a Day 2 pop, but even that depends somewhat on there being solvent day traders in the market to give it a boost.
I’ll be watching this one for a possible LPX run down the line. With Series B warrants on a 1 year expiration, it seems they’ll be wanting to run this back to the IPO price at some point before then.


Brand Name Recognition:
Low.

Debut Trade Conviction Level:
Low.

+++

OKYO Pharma (OKYO) – May 13, 2022 | 961k shares
Price Range:
$4.50 – $6.50
Offering Size:
$10M
Shares Outstanding:
22.11M

Industry: Biotech

Overview:
This is a British pre-clinical biotech with a pipeline of candidates that address inflammatory eye diseases and ocular pain: examples include a treatment for dry eye that is poised to enter Phase I testing.

Considerations: The float on this one is so low that it appears to be almost begging day traders to pile in, and the price certainly invites speculation, so it could be interesting just on the setup alone. According to the prospectus, their lead candidate could skip Phase I safety trails and proceed to Phase 2 by the end of 2022: which would present a clear catalyst for an upside move if (when) this stock drops from the IPO price.

Growth Numbers: none

Baseline Financials: none

Notes from the F-1:
We were originally incorporated in the British Virgin Islands as a British Virgin Islands Business Company on July 4, 2007 under the BVI Business Companies Act 2004 with company number 1415559 under the name Jellon Enterprises, Inc.. Our legal and commercial name was changed to Minor Metals & Mining, Inc. on October 24, 2007, to Emerging Metals Limited on November 28, 2007, to West African Minerals Corporation on December 9, 2011, and to OKYO Pharma Corporation on January 10, 2018. On March 9, 2018, shareholders approved the cancellation of our AIM listing and migration to Guernsey.
I mean, this sounds super sketchy, but perhaps as a shell company it makes sense?
Our website address is www.okyopharma.com. The reference to our website is an inactive textual reference only and the information contained in, or that can be accessed through, our website is not a part of this registration statement.
So what you’re saying is, you have a website, but the information on the website is possibly not accurate?


Underwriters:
ThinkEquity

IPO Classification:
Ultra Low Float ( about as low a float as I’ve seen)

Recent Similar IPOs: LCFY

Trading Strategy:
This is such a low float that it will be interesting to watch where it opens. If it gets pumped up to a small debut premium, it could be ready to run, if the debut is up in the $10+ range, I’d be pretty weary of any continued upside, and don’t se

Brand Name Recognition:
Low.

Debut Trade Conviction Level:
Moderate.

+++

Lockup Period Expiration (LPX) Watch:

Most IPOs are subject to a 180 day lockup period before insiders and shareholders who owned shares of a company prior to the IPO can sell their positions. Typically, the dilutionary effect of this event will cause a stock price to drop, as supply increases without any fundamental changes in the value of the underlying company. Many investors will wait for LPX before starting a long term position in a company.

LPX for the Week of May 9, 2022

Society Pass (SOPA)
– LPX Date:
May 9, 2022
LPX Period: 6 Month
IPO Date: November 9, 2021
IPO Price: $9.00
Exercise Price of Common Shares: 110% of IPO = $9.90
Secondary Offering Exercise Price: $3.30 – made effective on February 8, 2022 subject to 6-month lock-up
Notes: Reference 10K dated 30 March, 2022

Stran & Company Inc (STRN)
LPX Date: May 9, 2022
LPX Period: 6 Month
IPO Date: November 9, 2021
IPO Price: $4.15
Exercise Price of Common Shares: 110% of IPO = $5.1875
Secondary Offering Exercise Price: $4.81375 – made effective Jan 5
Notes: Original LPX agreement was waived for 4.3 m shares in the orig IPO
Reference 10k dated March 28, 2022

BlueJay Diagnostics (BJDX)
– LPX Date:
May 9, 2022
LPX Period: 6 Month
IPO Date: November 10, 2021
IPO Price: $10
Exercise Price of Common Shares and warrants: $10 and $7 (MEF) sold as units
– Notes:
IPO included S-1MEF (addition of shares to orig offering <20%)
No secondary
Reference 10k dated 10 March, 2022

Heartbeam Inc (BEAT)
– LPX Date:
May 10, 2022
LPX Period: 6 Month
IPO Date: November 11, 2021
IPO Price: $6 sold as units
Exercise Price of Common Shares and warrants: $6 equal 100% of the IPO price per Unit
Notes: Reference 10k dated 24 March, 2022

Tivic Health Systems Inc (TIVC)
– LPX Date:
May 10, 2022
LPX Period: 6 Month
IPO Date: November 11, 2021
IPO Price: $5
Exercise Price of Common Shares: $6.25, equal to 125% of the public offering price
Notes: (12-month LPX for officers and directors)

For a full list of IPOs and Uplist LPX dates and video reviews https://tradingfitgirl.net/references for the direct Spreadsheet Link

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IPO Warriors IPO Preview for May 2 – May 6, 2022

IPO Warriors IPO Preview for May 2 – May 6, 2022

May 3, 2022

Honestly, I can’t remember the last time we had an IPO for a company that your average consumer, let alone retail trader, had ever heard of going into the debut. The market has been in a brutal pull-back from the COVID hysteria that brought out a record number of IPOs in 2021, with ‘growth’ names being hit hardest and many recent IPOs trading significantly below their initial pricing. Simply put, the institutional money that provides the anchor investments in mainstream IPOs has had its money parked on the sidelines, and so we’ve been left to trade low-float IPOs of the more dubious variety.

Suffice to say, there have still been some incredible win opportunities in the offerings backed by the less prominent underwriters, with OST and HLVX continuing the trend last week. But this week we may see the beginning of a turnaround in the market, depending on how the first brand-recognized IPO we’ve seen in a long time performs.

With a full slate of IPOs lined up for Friday, May 6, 2022: I’m planning to live-stream the action with co-host Aly Angel starting around 9:40 AM EST here:

https://www.youtube.com/watch?v=kY6V6_Hclgo

+++

This Week’s IPOs:

  • Edible Garden (EDBL) – May 4, 2022 | 2.14M Units

  • Austin Gold (AUST) – May 4, 2022 | 3M Shares

  • Novusterra (NOVS) – May 4, 2022 | 2.14M Units

  • PepGen (PEPG) – May 6, 2022 | 7.2M Shares

  • Bausch + Lomb (BLCO) – May 6, 2022 | 35M Shares

  • WYTEC (WYTC) – May 6, 2022 | 2.9M Shares

  • SOS Hydration (SOSH) – May 6, 2022 | 1.6M Units

  • SaveOne (SVRE) – May 6, 2022 | 1.38M Units

+++

Ok, Let’s jump in:

Edible Garden (EDBL) – May 6, 2022 | 2.14M Units
Price Range:
$6.00 – $8.00
Offering Size:
$14M
Shares Outstanding:
4.046M

Industry: Indoor Gardening

Overview:
Rescheduled from last week: this company operates indoor agriculture technologies to grow lettuce and herbs indoors. Apparently, they emerged out of a failed cannabis growing operation and have rather sparse financials. Furthermore, 58% of their revenue comes from just 2 clients.

Considerations: Food prices are skyrocketing, but I’m not sure that’s going to be enough to get much buzz built around this company. Their financials are pretty weak, and the main thing going for it is that the float is relatively tiny, and this could attract the accumulation crowd. I’m not sure how much longer this trend will hold: as we’ve seen it get played out before, and this IPO is scheduled to debut at the end of a string of low float IPOs that have managed to pull together Day 2 or Day 3 rallies solely based on microscopic floats.
The comparatively high price gives this one a lot of room to fall, so perhaps if it capitulates all the way down below $3, it sets up a nice run back up to the $4 or $5 level.
There have been rumors that a large portion of the shares are under lock-up provisions, but I have not verified this. But if we do see a very low volume of shares being offered in the pre-debut imbalance, it could indicate an opportunity to get in for a small position on a potential runner.

Growth Numbers:
– Revenue Growth:
+12% for the 9 months ending September 30, 2021
– Gross Profits:
-40% for the 9 months ending September 30, 2021
– Gross Margins: 8%


Baseline Financials:
– Cash Flow:
negative
– Net Income:
negative
– Operating Profit:
negative

Notes from the S-1:
We have granted the representative of underwriters an option exercisable within 45 days of the date of this prospectus to purchase from us up to 321,429 additional shares of common stock at an assumed purchase price of $6.99 per share and/or up to 321, 429 additional warrants at a purchase price of $0.01 per warrant, less, in each case, the underwriting discounts and commissions to cover over-allotments, if any.
I mean, underwriters almost always have the option to buy more shares, but considering the size of the IPO to start with, adding about 640k in potential shares (half warrants) to the float by the underwriter could provide enough motivation for the underwriter to try to get this to jump on Day 1… and would also likely setup an abrupt drop whenever the underwriter decides to exercise and dump that position.

Underwriters:
Maxim Group

IPO Classification:
Ultra Low Float

Trading Strategy:
I am not sure about this one, really. If they debut on Wednesday, I’ll be busy celebrating my daughter’s birthday anyway, but were I trading this one, I’d be watching to see if the pre-debut indication balancing shows low volume with a significant debut premium. I’d tread carefully either way, but if we see low volume with healthy premium it could be poised to halt up off the open.

Brand Name Recognition:
None.

Debut Trade Conviction Level:
Low

+++

Austin Gold (AUST) – May 4, 2022 | 3M Shares
Price Range:
$4.00
Offering Size:
$12M
Shares Outstanding:
12.5M

Industry: Gold Mining

Overview:
This company owns the gold prospecting rights to several plots of land in Nevada near existing mines. The CEO has a history of delivering value to clients, with his most recent company being sold for $2.8B (Pretium Resources) at a considerable premium for shareholders.

Considerations: This one was repeatedly rescheduled again and again from November into December 2021 before ultimately throwing in the pick and shovel and delaying the deal until this week. Their website is laughably bad, with no updated information, and some pages showing error messages. Perhaps they feel that with the market in the dumpster, there will be an interest in gold. There was a time when the prototypical pump-and-dump scheme revolved around gold mining companies, so there will be an abundance of skeptics on this one, and the market has not been too friendly to Roth Capital IPOs, so I’m not sure this will get much immediate retail demand. Then again, gold is considered an inflation hedge, and perhaps that brings this one some attention. Maybe one to watch, but unless the temperature of the social buzz around this one gets hot, I’ll be watching it from the sidelines.

Growth Numbers: None: they haven’t even built any mines yet.

Baseline Financials:
Also none

Notes from the S-1:
Didn’t really bother

Underwriters:
Roth Capital (an unloved underwriter who has yet to deliver a debut winner since I’ve been watching their IPOs)

IPO Classification:
Low Float

Recent Similar IPOs: LITM (I guess, I mean, it’s also a pre-operational mining company, but Lithium is hotter than Gold these days).

Trading Strategy:
Can’t imagine much interest in this one off the debut. Perhaps it’s a low-floater that gets accumulated on Day 1 and runs on Day 2? Who knows, that’s been a winning setup for the past 3 weeks, and we saw it again on NVCT from Friday last week to Monday this week. Almost makes sense to buy any low-float IPO that bombs on Day 1 just to see if it rebounds in the following days.

Brand Name Recognition:
Low.

Debut Trade Conviction Level:
Low..

+++

Novusterra (NOVS – May 4, 2022 | 3.75M Units
Price Range:
$4.25 – $5.25
Offering Size:
$18M
Shares Outstanding:
12.5M

Industry: Graphene production

Overview:
This company manufactures products made of graphene produced from coal and carbon. They are pre-development, so no financial are available.

Considerations: This one will need some serious social buzz in order to make any kind of upward move off the debut. The float is not tiny and there are warrants involved, so unless the Twittersphere and Reddit Throngs can concoct a narrative around EV applications, this one is likely to drop off for a bit before it gets some random pumps by trading groups. If the debut shows a premium above the IPO pricing, it might actually be on day trader’s radar.

Growth Numbers: None: they are pre-development.

Baseline Financials:
Also none

Notes from the S-1:
Didn’t really bother

Underwriters:
EF Hutton

IPO Classification:
Low Float

Recent Similar IPOs: LITM ( IF this catches an EV angle, it could be an interesting setup – like LITM… if not, it’s unlikely to give much immediate upside).

Trading Strategy:
Just gotta watch the debut and gauge interest on social media. If we see really low volume on the debut with an unreasonable debut premium, it could be set to run off the debut. But it’s a super risky play, so I will most likely be watching it from the sidelines

Brand Name Recognition:
Low.

Debut Trade Conviction Level:
Low..

+++

PepGen (PEPG) – May 6, 2022 | 7.2M Shares
Price Range:
$13.00 – $15.00
Offering Size:
$124M
Shares Outstanding:
20.5M

Industry: Biotech

Overview:
This is a clinical stage biotech with a lead candidate in Phase I safety trials that focuses on Duchenne Muscular Dystrophy.

Considerations: I generally don’t trade biotech IPO debuts, and this one doesn’t provide anything enticing enough to make me want to break that trend.

Growth Numbers: None.

Baseline Financials:
Also none.

Notes from the S-1:
Didn’t really bother

Underwriters:
BofA Securities

IPO Classification: Friday Biotech Bust

Recent Similar IPOs: ANTX

Trading Strategy:
Biotechs like this one are a very difficult debut to trade: 90% of the time they drop on Day 1 and are far less prone than their ultra-low-float counterparts to random pumps. I just don’t trade this kind of stock unless it drops to absurdly low price points going into the lockup period, but certainly not a Day 1 debut trade for me.

Brand Name Recognition:
Low.

Debut Trade Conviction Level:
Low..

Live Debut Streaming: https://www.youtube.com/watch?v=kY6V6_Hclgo

+++

Bausch + Lomb (BLCO) – May 6, 2022 | 35M Shares
Price Range:
$21.00 – $24.00
Offering Size:
$966M
Shares Outstanding:
350M

Industry: Contact Lenses

Overview:
This is the first bona fide mainstream IPO of the year from a brand-name company known in average households as a company that specializes in corrective lenses and disposable contact lenses. This is a well-established company with solid baseline financials and steady growth, but nothing like what we saw in software startups in the last couple of years. This IPO is a little different than usual IPOs, as the company is not actually raising any funding for the company – it is a spin-off from Bausch Health Companies who will be pocketing all of the proceeds from his debut. Another way to look at this is that Baush Health is selling this company to the public. It’s also a dual listing on the TSX and NYSE.

Considerations: The float on this one is a full 35M shares, and my guess is that retail traders aren’t too enthusiastic to buy into a long-term position on any IPOs right now, so the typical debut premium we have seen in brand name openings seems unlikely. The financial community will be watching this on closely to see how it performs: a strong debut will open the door for more IPOs, so I believe the underwriters will be aiming to keep the IPO price reasonable, and open it at a price that avoids an immediate sell-off.

Growth Numbers:
– Revenue Growth:
+10% in 2021 vs 2020
– Gross Profits:
+7.7% in 2021 vs 2020
– Gross Margin:
61%

Baseline Financials:
– Cash Flow:
positive
– Net Income:
positive
– Operating Profit:
positive

Notes from the S-1:
pretty standard stuff.
We are not selling any of the common shares in this offering and will not receive any proceeds from the sale of the common shares.


Underwriters:
Morgan Stanley, Goldman Sachs, Citibank, JP Morgan… and many others

IPO Classification:
Mainstream IPO

Recent Similar IPOs: We haven’t had a brand name mainstream IPO this year, so I’m not going to make any comparisons.

Trading Strategy:
I don’t believe this will be particularly exciting one way or another. I believe they will price it reasonably for institutional buyers to ensure they don’t take a bath on the debut, and they open it at a price that they can easily protect if it drops. So it could be a relatively safe entry – particularly on any opening drop, but I also feel that IPO buyers will sell into any strength.

Brand Name Recognition:
High.

Debut Trade Conviction Level:
Moderate

Live Debut Streaming: https://www.youtube.com/watch?v=kY6V6_Hclgo

+++

WYTEC (WYTC) – May 6, 2022 | 3.89M Units
Price Range:
$4.15 – $6.15
Offering Size:
$20M
Shares Outstanding:
18M

Industry: 5G Networking

Overview:
This company provides 5G network deployment technology for small cell systems that offer coverage within 1000 feet of a tower. They target their solutions to mobile virtual network operators in the cable industry to bolster their cellular and mobile offerings with WiFi/data/VOIP services.

Considerations: This company is not profitable, not producing positive revenue, and has negative baseline financials across the board. The float isn’t that low, relative to others we have on the docket for Friday, and I’m not sure there will be much day-trading interest on this one. However, we have seen quite a bit of interest in recent low-float IPOs in the past week, and Tuesday saw quite a few recent low-float IPOs make rebound runs (OST, HLVX, JCSE, RVSN…) so maybe the trend can bleed into some interest in a debut play, but that’s a long shot.

Growth Numbers:
– Revenue Growth:
-11.7% in 9 months ending September 30, 2021
– Gross Profits:
+26% in 9 months ending September 30, 2021
– Gross Margin:
15%

Baseline Financials:
– Cash Flow:
negative
– Net Income:
negative
– Operating Profit:
negative

Notes from the S-1:

Underwriters:
EF Hutton

IPO Classification:
Low Float IPO

Recent Similar IPOs: MTEK

Trading Strategy:
This one has units and the float isn’t that low: so it would need social buzz to send it on a debut run. Given that Boustead has an IPO offering on Friday, I think low-float IPO scalpers will be focused on that one instead of WYTC. I’m not particularly interested in this one until it bottoms out as a possible LPX move when the lock-up expires.

Brand Name Recognition:
None.

Debut Trade Conviction Level:
Low

Live Debut Streaming: https://www.youtube.com/watch?v=kY6V6_Hclgo

+++

SOS Hydration (SOSH) – May 6, 2022 | 1.36M Units
Price Range:
$4.50 – $6.50
Offering Size:
$8M
Shares Outstanding:
7.03M

Industry: Health Supplement / Sports Drink

Overview:
This is company has developed a hydration product based on the WHO’s rehydration formula with enhancements that they claim improves absorption and performance of the product. They do have a retail presence in large retail chains such as CVS, Walmart, and Whole Foods, along with online sales on sites like Amazon.com and Target.com. So this is like, actually a real company with revenue and a product that generally has very high customer ratings for its performance. Whether the market is ready to be enthusiastic about buying into the debut is another question.

Considerations: Rescheduled from last week (and the week before then): not much has changed, and it is still offered for allocation request on WeBull, so it seems they must be struggling to fill their order book.

Last week I wrote,
“I’ll have to defer to social media throughout the week to get a sense as to whether retail traders are likely to get behind this one at all. With just 1.36M shares (plus an equal number of warrants), and a limited number of total shares outstanding, this one could get pumped simply as an ultra-low float IPO. But I’m not sure it’s sexy enough to warrant a debut buy: so I’ll be watching the pre-debut indication and most likely, just waiting to see if it drops into an attractive price range for a subsequent rebound.”

Given the attention STSS no doubt stirred up with its Day 3 run, this one may get played out. The float is tiny, and food stocks are in vogue right now, so maybe I should pay attention to the debut on this a little more. If we see strong buy-side demand perhaps it can run.


Growth Numbers:
– Revenue Growth:
+54% in the 9 months ending September 30, 2021
– Gross Profits:
+42% in the 9 months ending September 30, 2021
– Gross Margin:
37% in the 9 months ending September 30, 2021

Baseline Financials:
– Cash Flow:
negative
– Net Income:
negative
– Operating Profit:
negative

Notes from the S-1:

Underwriters:
Maxim Group

IPO Classification:
Ultra-Low Float

Recent Similar IPOs: OTLY

Trading Strategy:
I’ll be paying attention to social media this week, as sometimes a cult-brand IPO gets enough support from its target consumer base and loyal customers to run it: think DNUT, BIRD, BROS, etc.
The float is so low that it may not drop as hard as others, especially given that it appears to have at least moderate brand name recognition. If it doesn’t perform well at all on Day 1, it could be a very interesting Day 2 setup, as this one actually could benefit from an overnight media cycle. I believe many of its loyal customers won’t be aware of the IPO until it the day after it debuts and headlines announce its IPO performance: so a Day 2 run is very possible.


Brand Name Recognition:
Moderate

Debut Trade Conviction Level:
Not high, but not completely disinterested. Seems like it could get enough support from a loyal customer/fan base to give it some legs.

Live Debut Streaming: https://www.youtube.com/watch?v=kY6V6_Hclgo

+++

SaverOne (SVRE) – May 6, 2022 | 1.38M Shares
Price Range:
$7.22
Offering Size:
$14M
Shares Outstanding:
4.046M

Industry: Mobile App / Automotive Software

Overview:
This is an Isreali company that has developed a technology that restricts the use of mobile devices by drivers in vehicles. It’s an uplisting from the the Tel Aviv Stock Exchange, so I’m not gonna spend too much time discussing this one, since uplistings tend to be a different type of setup than most pure play IPOs.

Considerations: This is an uplisting, and has been rescheduled from last week. The software seems like something consumers would only use if forced to: either by an employer or federal regulations. I may watch this one in case it sells off hard on Day 1, and look for a Day 2 spike: it is an ultral-low float offering that could get ignored. This would provide the right conditions for accumulation on Day 1 and a pump on Day 2.

Growth Numbers:
– Revenue Growth:
+53% for 2021 on $145k in total revenue
– Net Profits:
+198% for 2021 on $52k total gross profits
– Gross Margins: 35%


Baseline Financials:
– Cash Flow:
negative
– Net Income:
negative
– Operating Profit:
negative

Notes from the F-1:


Underwriters:
ThinkEquity

IPO Classification:
Ultra Low Float, Uplisting

Trading Strategy:
I’ll be focused elsewhere on Wednesday, but will keep an eye on this for a potential entry if we see a massive drop that persists throughout the end of Day 1 and look for a possible Day 2 setup.

Brand Name Recognition:
None.

Debut Trade Conviction Level:
Low

Live Debut Streaming: https://www.youtube.com/watch?v=kY6V6_Hclgo

+++

Actelis Networks (ASNS) – May 6, 2022 | 3M Shares
Price Range:
$4.00
Offering Size:
$16M
Shares Outstanding:
15.6M

Industry: IoT (Internet of Things)

Overview:
This is a network solutions company with a proprietary hybrid fiber-copper technology that provides a flexible solution for areas regardless of whether they can easily be reached with fiber-optic solutions. But that’s not really why anyone is paying attention to this one: it’s a Boustead deal, and they tend to figure out ways to run their offerings, so people will watch, some will buy off the debut, and if we get anything other than volatility off the debut we will be surprised.

Considerations: Well, it’s a low-float Boustead deal. That’s generally enough to bring attention to this one..

Growth Numbers:
– Revenue Growth:
+0.2% for 2021 vs 2020
– Gross Profits:
-20.3% in 2021 vs 2020
– Gross Margins: 46%


Baseline Financials:
– Cash Flow:
negative
– Net Income:
negative
– Operating Profit:
negative

Notes from the F-1:


Underwriters:
Boustead Securities

IPO Classification:
Boustead

Trading Strategy:
I’ve put in an allocation request for this one on WeBull – if we get a debut premium, I’ll probably sell on the debut. I’m not so sure this one has much upside as a debut trade. Boustead has delivered a couple duds recently, and the runners have had clear ties to Asia or other foreign entities (AKAN was tied to Lesotho)… so I’ll be investigating a little further during the week to see if I can find anything interesting.Otherwise, this one might be one where I just sell any allocation I get if given a chance to take profits, and otherwise put this one on watch for a longer term LPX play.

Brand Name Recognition:
None.

Debut Trade Conviction Level:
Low

Live Debut Streaming: https://www.youtube.com/watch?v=kY6V6_Hclgo

+++

LIVE IPO STREAMING

May 6, 2022 at 9:40 AM EST

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