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IPO Trading Review for the Week of Nov 22, 2021 – Nov 26, 2021

IPO Trading Review for the Week of Nov 22, 2021 – Nov 26, 2021

November 26th, 2021

Though we had a lineup of 6 potential IPOs, and were on-watch for a Stealth IPO, 5 were cancelled or postponed, and the one that did go live was a pretty tough one to have caught… but if you did, well…

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Ok, we’ll cover it in a bit, but wanted to post an update on the Campaign to Buy Streaming Gear: I’m very THANKFUL for all of you who contributed. The lighting has all arrived, and some of you noticed the improvement on last Monday’s Benzinga show. The new lens, along with the contributions that Benzinga sent out: a microphone, new headset, and LCD camera monitor, have all been shipped out and hopefully will arrive next week.

It’s not too late to add contributions, additional funds would go towards buying a license for video editing software (Camtasia):

https://fundly.com/ipowarriors-streaming-equipment

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Aeroclean Technologies (AERC) priced at $10, and with a float of just 2.5M shares and COVID angle, looked like a prime IPO debut play. I had said at the start of the week that if a gun was pointed at my head and I had to pick one IPO to play this week, it would be this one. Well, perhaps that would have been for the best, as I got spooked by the debut price when it indicated at $50, then $60 before going live at $40, and could not justify the downside risk at such price levels. The first halt up to $44 didn’t surprise me so much, as the 4 subsequent halts that ripped up to a high over $101.87. It then it went on a spotty, yet volatile reversion to $70, then back up to $97, and has been choppy since then, with a Day 2 run back up $97, but mostly stabilized in the $70-80 range. Not bad for a company with zero revenues. I can’s say I’ve seen anything like this outside of suspicious Chinese money laundering plays, but then again, perhaps any company that IPOs on the day before Thansgiving should have been more obviously up to some shenanigans. Oh well, these types of plays are purposefully hard to pick up on, and the only lesson I can come up with from watching it is that when we see a ridiculously high debut price, paired with a tiny opening sales volume in the IPO Crossing, with buy-side imbalances in the double and triple digits, then volume is low, demand is high, and that leads to upward momentum.
I’m not kicking myself for missing this one, but will certainly remember it for a long time.


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 Trading Review for the Week of November 15, 2021 – November 19, 2021

IPO Trading Review for the Week of Nov 15, 2021 – Nov 19, 2021

November 21st, 2021

Campaign updates: we’ve reached $2,350 and gear has started to arrive:
more is in delivery…

It’s not too late to add contributions, additional funds would go towards buying a license for video editing software (Camtasia):

https://fundly.com/ipowarriors-streaming-equipment

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Catch this Week’s Upcoming IPOs in Review on
Monday’s Show on Benzinga: 12:00 PM EST (Noon):
(I’ll send the link out tomorrow morning once I get it from the Benzinga team)

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Last week was a great week in IPO trading, with some incredible profit opportunities, and more importantly, so key learning examples… so let’s jump into some analysis of how these played out.

Sono Group (SEV) turned out to be as hot as forcasted, with a debut price that made it a can’t-miss play. A prime example of an IPO that demonstrated social media hype, red-hot buzzwords, and a low float of just 10M shares: the real gift here was a debut price at just $20.06 up from an IPO priced at $15. One key indicator was the early indication test at $30, which showed strong demand, that was then steadily reduced to a more digestible opening price that left plenty of room for upside movement once it opened for trading. SEV quickly ran up into a halt at $22.84, opened at $23.40 and went into a second halt… for safe profits, I recommend exiting at least part of your position out of each halt. Halts indicate extreme volatility, and can halt back down just as quickly as they’ve halted up. I prefer to be selling on the way up than on the way down: partially so I can go enjoy the rest of my day, but also because we never know if the opening run will be the short-term high or just a benchmark to be broken on later highs. If you want to test the momentum on a debut, the profits can be handsome, but you also risk giving back all your wins (or even turning a win into a loss). So I’m generally looking to sell 30-50% of my position out of the first halt, and more out of any ensuing halts.
In the case of SEV, this strategy would have missed out on what became a euphoric run up to $40 right after the closing bell, and high of $53.97 in early pre-market.
So if you held into Day 2, you had the opportunity to take 100%+ gains, but if you held beyond that, you quickly saw your win percentage diminish with time: as SEV closed the week at $24.80.
Whenever you’re trading an IPO that goes parabolic, bear in mind how detached the price is from fundamentals: they tend to re-align rather quickly, and you want to be locking in extreme profits quickly.

Iris Energy (IREN) was relatively disappointing, but somewhat predictably given the drop in BTCUSD price in the days leading up to the IPO. The obvious hint that this one was going to drop off the debut was the heavy sell-side imbalance shown in the pre-debut ‘share balancing’, which showed that even at the IPO Price of $28, there were far more sellers than buyers. The mistake I made was thinking that this would correct off an initial drop, with a target of $30: which seemed reasonable given the opening debuts of other recent crypto miners. The stock dropped steadily throughout the day to a low of $21.46, before recovering to close around $24. I’ve decided to bag-hold this one, as like many IPOs that price at or below their IPO prices, they have a very good chance of recovering. If BTC comes back up over $65k and beyond, I expect all the crypto miners to move up accordingly, and this one, as a recent IPO with just 8M shares floated, stands to recover the few points I need to to move from it’s current price at $24.80 into a break-even or winning trade.

User Testing (USER) didn’t look strong from the start, debuting at $15.40 – below the IPO price at $16 with no real buzz or interest in social media, and other IPOs in play. It broke down to a Day 1 low at $13.32, can back up towards $14.80, but couldn’t get any momentum from there, and closed the week at $13.40. This may be a growing business, but without any retail demand, this was an IPO to avoid from the start.

Braze (BRZE) though somewhat comparable to USER, BRZE was clearly a more attractive company, with more recognizable names in its customer list, and clearly stronger demand. BRZE debuted well above it’s IPO price, which had priced above range, and while too expensive for my tastes given the other more attractive plays on deck for this day, it did offer a marginal win opportunity for those who bought the debut at $87.20 and sold either on the early run to $92.75 or the afternoon run up to $94.88. If you had really strong conviction in this trade, held it into Day 2, and were able to sell in the early pre-market, you could have exited at $106.00, but in reality the volume at that price was just 889 shares, so it’s not all that realistic to believe you were going to nail that price. Day 2 holders would have been punished for their greed, as it dropped hard off the open to a low of $82.34, recevered back up to $94, and then fell again even lower down to $80.45 before making a comeback on Day 3 to as high as $95… but clearly the bests win opportunity was on Day 1, and even at that, the margins for profit were hardly worth the relative risk or time management required to profit from this trade, especially given what SEV did.

Sweetgreen (SG) this is a great example of a prime IPO play opportunity that got overheated before it ever debuted. Given the success of BROS and PTLO, there was a lot of excitement over this IPO, and since the rest of the market was relatively pulling back on Thursday , a lot of day traders gravitated towards this name. It showed in the IPO pricing at $28: well above the $23-25 range, and IPO trader’s were collectively shaking their heads as the pre-debut indication price steadily rose from the mid-$30s to $40s, reaching a high point at $56 before opening the first trade at $51.70.
While there was some room to bank a quick profit on the opening run to $56, it was all downhill from there. I decided to give myself a day-off on this one, as personal life demanded my attention, but was watching from the sidelines as the price indications rose to over-heated temperatures. At $40 or less, I may have been tempted to jump in, but the heat in this kitchen was too hot, and though I did anticipate an brief upward run, I wasn’t at my desk and unable to dedicate the kind of attention that this trade would mandate.
A key takeaway from this debut is that when an IPO is over-hyped, and the debut price is near or at 100% of the IPO price, the initial retail demand surge is unlikely to be sustained. We saw this patter in the RIVN debut as well, and while it did rebound on a Day 2 media cycle, it opened, ran up for about 20 minutes, and then fell well below the IPO debut price. Keep this in mind when playing any blockbuster IPO.

KinderCare Learning (KLC) got pulled for filing issues, which is a bit rare: since usually they get pulled’ ‘due to market conditions’. Not gonna play this one anyway, but certainly a red flag for me when it eventually does IPO.

Austin Gold (AUST) pulled for market conditions and rescheduled for this upcoming week.

Snow Lake Resources (LITM) here we had another great example of a low-float IPO in a hot industry with a ton of social media buzz. As expected, the debut premium was high, as it opened at $11.50 from an IPO price of just $7.50, but this still left adequate room for retail demand to surge in and push LITM into a halt at $12.65 that opened at $13.80 for an easy partial exit to lock in some early profits. In the pre-debut indication process, prices in the $14-15 range were tested with heavy buy-side imbalances: so my target was $15, and was happily exited from my position on a run that would eventually halt again at $16.47 and open at $16.75 before topping out at $18.40.
At this point, it would be tempting to start making comparisons to the chart pattern we saw in SEV earlier in the week, and many traders were eager to reload their positions on LITM when it dropped below VWAP under $14. However, unlike SEV, LITM didn’t get a second wind, and a failed bounce back to VWAP topped out at $15, and then fell down as low as $11.35 before a slight end of day rally to close at $13.00 (and after hours trading brought it back down to $11.80).
A few lessons to learn here. One is that Friday IPOs tend not to have the same end of day runs as mid-week IPOs. Another is that not all IPOs that start strong will carry through to higher highs later in the day. And finally, this is why I prefer to take quick wins on the opening run: especially on a Friday. I get to close up early, and go into the weekend in cash.
There are times when an expected Day 2 run on an overnight media cycle make sense, but we tend to see those happen more often with brand name companies where there is a ton of media attention. Rivian was a prime example: everyone was talking about it, and the stock rallied for several days. I doubt that Snow Lake Resources will be talked about much over the weekend, and my Monday traders will either have moved onto other names that posted headlines over the weekend, or preparing to carve up their Turkeys.

Reminder: it’s a short week this week, and while there are some IPOs to trade, I expect volume to be relatively slow. There is a reasonable chance that we see a Stealth IPO sneak onto the calendar… so stay tuned. Otherwise, I wish you all a great week trading, and Happy Thanksgiving!

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 Trading Review for the Week of November 8, 2021 – November 12, 2021

IPO Trading Review for the Week of November 8, 2021 – November 12, 2021

November 14th, 2021

Wanted to first thank everyone who contributed to the campaign to raise money for some streaming gear: we reached the $2,000 goal in just 1 week!

It’s not too late to add contributions, as I have identified some additional needs that would help me in video production (like, some video editing software):

https://fundly.com/ipowarriors-streaming-equipment

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So this past week, we saw a deluge of low-float IPOs, most of which failed to garner any day trading attention, one stealth-IPO that we sniffed out – but didn’t quite nail with enough conviction in order to take a trade on it given WeBull blanking the debut indicator right before it went live, and some blockbuster IPOs that initially performed according to expectation but went on to prove the strength of the overnight media cycle for multiple day runs.

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Before we get started, please join me on Benzinga Pro at 12:00 PM Noon EST on Monday, November 15, 2021 to review next week’s IPO calendar:

https://www.youtube.com/watch?v=7X1VRZg2y2c

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Ok… let’s dig in:

Third Coast Bancshares (TCBX) was a little more volatile than we expect out of local bank IPOs, with a debut at $26 that zig-zagged down to $25.50, up to $27, and then back do the $26.40 level… from there it resumed trading like a small bank IPO and steadliy declined into a close at $25.01. Pretty much not worth playing, like most small bank IPOs.

Hertz (HRTZ) was a bit of a non-event, as this was a re-uplisting of the famous car rental brand that rose from the dead and has already posted huge gains on it’s recovery from the brink of bankruptcy. In fact, it dropped pretty hard from the previous day’s trading, as we suspected, given that it was a liquidity event for shareholders rather than a fundraising event for the company. The stock dropped to a low of $25.40 on the day, and has since recovered back up to as high as $27.38

CI&T (CINT)
Pulled a head-fake off the debut at $17.56 that put a scare into any debut buyers as it dropped to a low of $15.62 before rallying back to a baseline of $17.00. Those who doubled down would have been wise to bank any wins at that point, but bottom scalpers who had the conviction of further gains would have been amply rewarded with a torrid run up to a high of $22.50. That would be the zenith of this play however, and a tough one to have called. Shows the reasoning behind not using stop losses on Day 1 debuts, but a bit less comfortable than some of the other wins we saw this week

Bluejay Diagnostics (BJDX) behaved how we sort of expected random low-float IPOs to perform, with an initial drop that offered an undercut entry from the $5.47 debut price, to a shortly lived run up to a high of $6.25 that proved to the be the best exit, and a trail off to close around $5.00. It seems that being a low-float on its own is not enough to sustain a rally anymore, and the trend has gotten played out to a degree. This doesn’t include ‘Stealth IPOs’ that clearly have some other manipulative forces operating behind the scenes, but for most of the other rando-low-floaters (gonna call these “RLFs” … we saw a pattern of low demand and low volume combining to deliver downward escalators with no possibility of salvaging a win out of a debut entry.

Society Pass (SOPA) we had our eyes on this one this week as a possible stealth IPO, and though our instincts were correct, WeBull stopped showing us the indication price prior to the debut, so most everyone underbid the open. Too bad, as this one went on to rip through multiple halts off the $15.50 debut, to an initial opening run that topped out at $43+ before returning to baseline at around $30, until an end of day run brought the high of the day to $54. But that wasn’t the end of SOPA’s run: on Day 2 it pulled a typical stealth IPO move and topped out at $77.34.
This followed a nearly identical pattern as some of the other stealth IPOs we’ve seen, but unless you catch the opening debut, they are pretty dangerous plays: as many IPOs that halt out of the gate will get you into trouble if you chase (MYNZ and VAXX are prime examples). It’s nice to know these Stealth IPOs haven’t vanished though, so we’ll keep an eye out for the next one.

Expensify (EXFY) looked prime for a strong run, and delivered a short rip out of the debut at $39.75 to a peak at $42.00, but eased off and looked like it had already priced in all of the gains on its steep IPO debut premium, as it backed off to a low of $37.49 before rallying back above $40 to close the day. Turns out, a night of sleep gave this one the strength it needed to get to the highs we had hoped for, as it steadily climbed throughout Day 2 to a high of $47.62. I didn’t have the patience or risk tolerance to hold beyond taking some profits on the opening run, but a more calibrated and relaxed approach would have yielded optimal gains.

Backblaze (BLZE) debuted at $19 and after an initial pop to $22, dropped down to a low of $18.25 and then slowly climbed back above $19 before running back up and beyond $22 at the end of the day. An easy play if you took profits on the initial jump or held until the end of day run… and ig you held overnight into Day 2, you were rewarded with an opportunity to exit as high as $23. Not a huge runner in either direction, but worth a safe play for easy profits.

Rivian (RIVN) this was the main event of the week, and Day 1 played out pretty much as anticipated: an opening run from the debut price of $106.75 to a high of $119.45, then the huge float outpaced the initial surge in demand, and it fell off to a low of $95.65. This would have been an ideal time to load up on shares, although you may have second guessed yourself as it failed a short recovery and dipped slightly lower to $95.20… after that, it was all uphill from there. The Day 2 media cycle was predictably strong, and retail traders piled into this one to drive a Day 2 rally up as high as $125.00. Further media coverage propelled this into a Day 3 run that peaked at $135 shortly after the opening bell. The buzz is deafening on this one, and valuation is totally disconnected from financials, but the market already loves it, and if you read that on the Day 1 dip, you stood to take a handsome profit from this trade.

Vaxxinity (VAXX) showed us that even biotechs can produce a social media fueled spike, as it debuted at $16.90 and ripped into a halt at $18.59. From there it opened up at $20.70 and reached as high as $22.77 before falling off. I will always take a partial exit out of the first halt, unless I think we’re in a Stealth IPO play, and then am prepared to sell the rest immediately if we don’t get a second halt right away. It proved wise in this case, as VAXX fell off for the rest of the day to a baseline of $15.50… and this is where I made a critical error and ended up throwing away much of my wins.
I tried to get fancy with a re-entry off the baseline play, as this looked like an obvious retracement back up to VWAP, which was up above $18. When I missed the sub-$16 entry, I chased it up at $17… not realizing that there was a hidden sell-wall at $17 that would not be broken. I held into Day 2, and was forced to take losses when it failed to deliver any kind of Day 2 push. In retrospect, the lesson here is of course, Don’t Chase (Rule #2), but also, don’t expect a Day 2 push to bail you out on a biotech play, or any non-brand-name IPO play for that matter.

Journey Medical (DERM) showed that a sub-IPO price debut price on a solid company generally provides a safe setup for an easy win, and started trading at $8.70 after pricing their IPO at $10.00. It wasn’t a rocketship ride up, more of a slow and steady climb, but if you had the conviction to see this one for what it was, you let it open and gave it room to ride up to either a wall at $9.45 or a longer leash all the way up to $9.95, though it did ultimately peak at $10.20

Myneric (MYNA) got off to a rough start, with a debut price of $19.90 that quickly dropped down as low as $18.55 before recovering to form a base at $19.50… from there bag holders would have been holding their breaths waiting for the next move: we often see further drop-offs from such consolidations. But patient traders rejoiced when it suddenly ripped up to a high of $22.00 before settling into the $20.50-$21.50 rang, before trailing off at the end of the day to close at $19.25.
On thing to notice on just about all early IPO moves to the upside, is that we typically see the initial spike up hit the high of the run, and then a flag pattern form. From there, the breakout is usually an extreme move to the upside or downside: so if you’re aiming for a quick and steady win for at least a portion of your position, the best way to optimize your chances of catching a top is to pick a whole number: usually $2-3 above the debut price, and undercut that by $0.05-$0.15. We saw this in a number of opening runs this week, and even the rebound from MYNA held this pattern, with a spike up to $22.00, which was the whole number between $2-3 above the debut price of $19.90. I like to undercut the whole number but at least $0.05 to ensure that I get out before other sellers who have eyeballed that whole number, as you’ll often see rallies fall just short, and the extra few cents really isn’t worth missing the exit.

and a bunch of RLFs (random low floaters) that I can pretty much summarize with one description: LVLU, WEAV, BEAT, PIK, TIVC, WBEV, BTBD:
Debuted, fell, fell some more, made a weak attempt at a recovery, you wish you hadn’t played it: the sooner you got out the better.
So yeah, just being low-float doesn’t cut it anymore. Perhaps a couple of these don’t quite belong on this list, but generally these were all disappointing IPOs from a debut buyer’s perspective, so better off just leaving these alone for now unless there is a solid company behind the IPO: ideally something with some buzzworthiness to it.

The lesson of the week for me was to focus on fewer IPOs that have brand name recognition and give a portion of your position a shot for a Day 2 run. The other lesson was to trust my instincts on Stealth IPOs and don’t rely on WeBull to show you the imbalance pricing: overshoot the bid to ensure debut entry with a limit order at your acceptable risk tolerance. That way if you do miss it, you can accept that it wasn’t right for your appetite.

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Remember to please join me on Benzinga Pro at 12:00 PM Noon EST on Monday, November 15, 2021 to review next week’s IPO calendar:

https://www.youtube.com/watch?v=7X1VRZg2y2c

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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 Trading Review for the Week of November 1, 2021 – November 5, 2021

IPO Trading Review for the Week of November 1, 2021 – November 5, 2021

November 7th, 2021

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Before we get started, please join me on Benzinga Pro at 12:00 PM Noon EST on Monday, November 8, 2021 to review next week’s IPO calendar:

https://www.youtube.com/watch?v=FV92xtS5t1M

And while you’re here – I’d like to start live-streaming IPO debuts and trading on YouTube, but need to upgrade my equipment. We’ve already reached $880 out of the $2,000 goal. This will also be used in my Benzinga appearances, so if you feel like supporting this cause, I’d greatly appreciated it. The link to donate is here:

https://fundly.com/ipowarriors-streaming-equipment

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Ok, so in the interest of full-disclosure, last week I took a brutal loss… Sometimes you nail the call, line up the perfect strategy, and then fumble the execution of the trade… that was the main story of my IPO trade last week, and I’ll get to it in a bit. But the main point I wanted to make is that traders need rules, these rules should be simple and are meant to keep you from repeating bad habits. I have two, and I broke one and paid dearly for my mistake. It happens, we learn from our mistakes, and move on, but I wanted to rehash them for you in hopes of helping you avoid such a critical mistake:

Rule #1: Take Profits without Regret: The key point of this rule is to focus on taking profits at any point in the trade when profits are on the table, and if you stick to your strategy, do not regret missing out on further gains if you sold too early, or held on past the peak but still took profits without turning a win into a loss. The danger in regretting that you “could have made more” on a winning trade, is that you are adopting the mindset that your strategy was flawed, despite being successful. Whether you’re riding a trailing stop loss, setting a limit order at a target price, or executing a market order when you see volume drop, it is very difficult to time the very top of a volatile stock, and the downward pullback from the absolute peak is almost always a violent downward drop. It’s a bit like running up a hill with a blindfold on, and trying to decide when to stop and take the blindfold off… except at the very peak is a cliff. Better to stop partway up the mountain than fall off the other side.

Rule #2: Don’t Chase: This one makes my short list of Rules (I only really have 2), because it has burned me every time I’ve broken it, and yet I still make the mistake from time to time, as I did this week. The results were as disastrous as expected. This primarily applies to chasing halts, but really goes for any stock that has moved aggressively upwards. In IPO trading, this specifically applies to the debut. If I am highly confident that a stock will go up, I want to buy the debut price… and if I think it will go up but might have a soft opening, I may buy into the open with a bid below the debut price (undercut) or a ladder of bids at and below the debut to catch a short drop before an anticipated run up. but NEVER should I buy AFTER the stock has gone up, and here’s why:
Consider that in more IPO plays, I’m aiming for a 10-15% win on a play that often maxes out at 20-30% in optimal conditions: that means if you bought the debut and timed the peak perfectly, you’d get 20-30% gains. In reality, timing the top perfectly is pretty tough, so I generally expect to miss the top by anywhere from 5-10% and possibly more if it really takes off. So if I miss the debut, and buy in at a point that is already gone up 5-10%, then I’m leaving myself very little room for my target profit zone, and end up mentally adjusting upwards, which puts me in the mindset that I’ll have to shoot for an even higher price target to get my desired gains. In the case of a stock that halts up out of the gate, you’re already giving up 10% right on the halt itself, plus another 5% or so at the opening price out of the halt… already losing out on 15% and entering at a point where you should be considering exiting at least part of your position is not a winning strategy over the long term, and more often than not, you’re setting yourself up to buy the peak in a position that is well over the debut price, and very likely to reverse dramatically. Anyway, I’m still licking my wounds from last week’s debacle: it was bad enough that I simply missed the entry on a high conviction win opportunity, but to then turn it into a massive loss by breaking one of my only rules, is just stupid.

Ok, so let’s take a look at last week’s winning IPO trades:

LianBio (LIAN) made a rare Monday debut, and promptly fell off from an opening price of $15.5 down to initial resistance around $14.50, but it wasn’t done dropping yet, and pretty much descended a staircase of successive drops into a Day 1 close at $13.70. Day 2 was no relief, as it traded sideways for most of the day, and Day 3 it continued its downward climb to a bottom just under $13.00. If you identified that as the bottom, you were right… and it did manage to climb its way back to close the week at $14.41. Perhaps news of the Pfizer COVID pill provided some catalyst, and if their partnership with Pfizer opens the door for them to bring this treatment to the Chinese market, it could be a strong long term hold.

Allbirds (BIRD) showed that being a well loved brand in an affluent market segment can translate into a frenzy of IPO retail buyers, as it debuted at $21.20 and steadily climbed to a peak of $32.44 with no retracement below $23 during that run… meaning you could have quite comfortably bought the debut, set a stop loss at $23 once it passed $24, and let it ride. If you raised the stop loss to $25 on its initial breakout to $26, you would have taken profits there, but if you gave it some room to run, you would have had a pretty easy trip to a possible exit target at $30, or trailing stop out slightly higher. I sat this one out for personal reasons, but it’s a good example of the power of having a loyal, wealthy fan base (Allbirds are apparently super popular amongst the tech elite).

Claros Mortgage Trust (CMTG) debuted at $16.14 … significantly below the IPO price of $18.65, and quickly rose to fill some of the gap off the debut, with a Day 1 peak of $17.13. Not all that exciting of a play, and not in my gameplan for the week, but another good example of how a sub-IPO price debut can setup a winning trade with relatively minimal downside risk.

Delimobil (DMOB)
Got pulled.

NerdWallet (NRDS) I had initially intended to skip this one, but when I saw all the posts with the $NRDS symbol and Revenge of the Nerds memes, I realized that the meme trend was going to be in full-effect on this one. As the ipre-debut indication price climbed upwards the $23 level, it was clear that demand had showed up for this IPO, and I decided to give it a shot with a half position, and glad I did. NRDS debuted at $23.50 and quickly spiked up into a halt at $26.68. It resumed out of the halt at $28.67 and made further moves into another halt that formed the peak at $34.44. At that point, you should be taking profits out of the second halt, and if you did, you absolutely nailed this trade for a robust $10/share win. Nice job. If you held through that, you were ok still, but might want to consider taking some profits at each halt in the future. After the first halt, I eyed $30 as my target exit, and set a limit order at $29.85 and was happy to bank profits at that point, although holding for further gains could have yielded substantially greater returns (Rule #1: Take Profits without Regret).

Evotec (EVO) didn’t play much like an IPO, as it was previously trading… not quite clear what the deal was on this one, so I passed on it. Looks like it debuted at $20.90, and slowly, and steadily climbed to a high of the day at $22.63. Would have been pretty tedious to watch, but if you saw the opportunity, good job. But if you missed other opportunities to play this one, you might feel like the opportunity cost was pretty high: in this case, just apply Rule #1 and be happy with a win.

Arhaus (ARHS) priced their IPO below range at $13, and still failed to provide a debut premium, as it opened trading at $12.50. This provided an opportunity to buy at a perceived discount, and traders who took this play were given a quick spike up to $14.00 before a consolidation at $13… but from there, the bottom fell out, and a low was established at $12.05 before a slight rebound to $13 failed to breakout, and it traded the remainder of the day in the $12-13 range. So altogether, a relatively safe trade with little downside risk yet little upside gains.

Cadre (CDRE) debuted at $15.07 and didn’t move nearly as much as one might have thought given the focus on low-float IPOs and applicable focus on police and first responder equipment given COVID and general social unrest. In two days of trading, the ATH stands at $15.70, with an ATL at $14.87. A safe trade if you took it, but low volume and basically no volatility made it a wise pass.

MDxHealth (MDXH) debuted at $12.15 and made a sharp spike up to $13.17 which instantly reversed into a long consolidation at $12.00 for pretty much the entire remainder of the day. Basically no movement throughout the week, as it closed Friday at $12.00 even.

Desert Peak Minerals (DPM) Got pulled/rescheduled.

Cian (CIAN) debuted at $17.47 and followed an immediate drop to $17.00 with a reversal spike up to $18.07 which was quickly given back to consolidate at the debut price, before falling down to a low baseline around $17.00 for mos tof the afternoon. It managed to rally back up to a high of $17.87 leading up to Power Hour, and held on to that level into a close of $17.67. Nothing too exciting here. A decent example of retail trader’s focus on domestic companies that carry strong brand name recognition in the retain market.

Nuvectis Pharma (NVCT) Also pulled/rescheduled.

The Real Good Food Company (RGF) didn’t do much either, with a debut at $11.66, a quick spike to $12.75, and then a staircase decline down to $11.00, retracement to VWAP at $11.60 and trail off at the end of the day to close at $11.00 even. Again, basically no social buzz on this one, and not much volume after the opening 5 minutes, so not much volatility or opportunity for a win.

FlexEnergy Green Solutions (FLXE) Pulled/rescheduled.

Mainz Biomed (MYNZ) Ok, so this was the main focus of the week for me, and for reasons I can’t fully explain other than having some personal distractions that likely contributed to being unfocused at the time of the debut, I missed the open. It debuted at a hefty premium of $14.35, and immediately spiked up into a halt at $15.79. The game plan had to been to buy in on the debut and sell out of the first halt. Having missed the entry, I broke my cardinal rule, and chased. You can guess how that worked out (hint: not good at all). For those who sold out of the halt, the exit was at $16.58, for a $2.23/share win. Good for you. You banked a solid win on a quick trade and took an early Friday off into what I hope was a wonderful weekend. For the rest of us: those who chased the initial halt, or failed to exit out of the first halt, the remainder of the day was a painful exercise in why you don’t chase halts. The move down out of the first halt initially gave a brief moment of hope, as it quickly made it to $18, but the reversal was sharp and swift into a downward halt, that then opened up down at $11.47. the resulting consolidation offered an opportunity to load up shares as low as $10.17 for a potential rebound, but the rebound back to VWAP was cut short by a halt at $12.59, and the open at $12.50 ran up to touch $13.45 as the high point for the rest of the day. I had set a trailing stop loss at $12.00, and had trailed it up going into the halt, but rather than taking the graceful exit at $13 for what would have been a minimal loss, I got visions of a comeback victory that never materialized, and like many, was forced to exit most of my position at much more painful levels later in the day as it bottomed at $8.25 before a quick recovery halt into the close. I managed to exit some of my position at the somewhat merciful $10.00 level in the opening minute of after hours trading, and still hold a small position on the hope and prayer that something magical comes along this week and helps recover some of this loss, but given the difference between what I would have pulled had I not missed the entry, and the loss I incurred instead, I will have to post this one in the mental hall of shame as my worst IPO trade ever… but will gather the lessons from this trade for further strength in battle, and am ready to move onto next week’s trades.

Oh Wait… there’s one more point I almost forgot to make:
PETZ!!!
For those of you who missed it, I posted
a deep dive into this one on September 30, 2021
At the time I wrote the original piece, PETZ was trading around $1.40
Last week on 11/03 it ran to a high of $8.13 in late after hours, and has made runs to $5.48 and $4.25 since then, and closed the week at $3.88
I’m not sure if we’re gonna see a massive spike on this one as I had originally hoped (I know, my expectations may have been a bit grandiose), but I’m not convinced that we’ve seen the main event on this one quite yet, so stay tuned. And if you did bank profits on this one already, congratulations: you likely pulled at least 100% and likely much more.

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Remember to please join me on Benzinga Pro at 12:00 PM Noon EST on Monday, November 8, 2021 to review next week’s IPO calendar:

https://www.youtube.com/watch?v=FV92xtS5t1M

And if you’d like to support my efforts to bring the IPOWarriors daily IPO trades to live streaming, please consider a donation to fund some equipment upgrades here:

https://fundly.com/ipowarriors-streaming-equipment

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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 Trading Review for the Week of October 25, 2021 – October 29, 2021

IPO Trading Review for the Week of October 25, 2021 – October 29, 2021

November 1st, 2021

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Catch me on Benzinga Pro at 12:00 PM EST to review last week’s winning IPO trades and a preview of the upcoming IPOs for next week:

https://www.youtube.com/watch?v=IOL7mhfb5Eo

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Last week we saw a hot market across the NASDAQ and NYSE that surprisingly showed a cold shoulder to fresh IPOs, with LIAN, ENSB, and CDLA all pulling their IPOs from the calendar, and others pricing modestly and offering attractive debut prices for IPO traders. In this kind of market, the downside risk is further limited, and buying the dip off the debut provides even more attractive upside potentials. You might miss out on a runner or two, but you’ll protect against the downside as well, which makes for calm, easy trades.

Let’s jump in:

Arteris (AIP) performed as expected, but took a little while to get going, with a debut at $16.51, it dropped out of the gate, and like most IPO day traders, I was able to undercut the debut for an entry that provided a comfortable ride through the first few hours in which AIP struggled to establish its base. Once it consolidated in the $16.00-16.25 range, it began the inevitable upsurge that we tend to see in low-float plays that eventually catch on, and it ran up to $19.75 at the turn of Power Hour before receding back down to close Day 1 at $18.20. Day 2 offered a return to the $19.40 range, but the real move was on Day 3, when it ran up as high as $23.97. This one reminds me a bit of SKYT: which was another chip-related play that took a few days to go up, and a few weeks to really break out. If this follows the same trend, we may get another opportunity to buy AIP under $20 in the next week or so, followed by a run up as high as $30.

Rent the Runway (RENT) was the non-event that we expected, though even this bombshell gave debut and debut-dip buyers a relatively safe setup, as it opened trading at $23.00 and briefly dropped down to $22.00 for a few minutes before steadily climbing for about 10 minutes to a top of $24.75. So if you set a trailing stop loss above your entry , once it broke $23.50, $24.00, $24.50… you took a small win. If you held on hoping for a late day run, you got burned, as it dropped as low as $19.00 towards the end of the day, and things only got worse later in the week: RENT closed on Friday at $17.01… not a position in which anyone wants to be stuck.

Informatica (INFA) debuted below the IPO price of $29.00: opening trading at $27.58, which made for a relatively safe and easy entry with reasonable expectations that it would at least climb back to the IPO target. Not only did it break $29, but it managed to climb up as high as $30.28. Nothing too exciting, but a good example of how the debut setup can provide a debut scalp with limited downside, and an easy exit target at the IPO price or slightly above.

Solo Brands (DTC) debuted at a hefty premium from its IPO price, and in this market, that was not a welcome introduction: as it opened trading at $22.35 off an IPO price of $17.00. Turns out retail traders who liked this one all bought right at the beginning, because from there the stock pretty much went into free fall with mo real opportunity to double up and catch a rebound. It touched as low as $17.00 on Day 1, and though it slightly recovered to as high as $19.33 on Day 2, if you bought this one on Day 1 at the debut, you’re sitting in a rut that might not be reversed for a while. I’m gonna be pretty coolish on any direct-to-consumer plays for the time being, as we just haven’t seen very warm welcomes to plays such as WRBY and HNST (though WRBY has recovered from its initial IPO drop off).

Fluence Energy (FLNC) If you entered this IPO debut with an undercut of the indication price, you set yourself up for a relatively easy win, as it debuted $33.50 and dropped down to a low of $32.00 in the opening 30 minutes. It then recovered rather nicely, giving even debut buyers a break as it steadily climbed up to a high of $35.94 before the close of Day 1. Day 2 saw slightly higher peaks at $36.63, with volatility in the $34.50 to $36.50 range. If you bought the dip below $33, selling at or above $35 would be an ideal exit. Unless I’m extremely bullish on a trade, a $2 win target is pretty standard.

Global Foundries (GFS) when the most publicized IPO of the week debuts at or below the IPO price, with a heavy sell-side imbalance before going into the debut, it’s a pretty safe bet to undercut the debut and expect a rebound back up. We see this especially true for high float IPOs. GFS performed as expected, with a debut at $47 that immediately dropped down to a low of $44.51. A laddered entry below the debut price would have been an ideal method for establishing a price basis that provided a quick positive return once the stock found it’s bottom. From $44.51, GFS quickly rebounded up to $48.00 – providing the first profit taking point, even for initial debut buyers. It then dropped again down below the $45 level, which provided another entry point for day traders who read the bottom and understood that this would be a resilient play. It managed to climb back up above $46 going into Power Hour, but again fell off sharply to a low of $44.48. At this point I couldn’t hold out any longer, and bought back in, as either an end of day run or Day 2 run seemed inevitable. My only mistake was cashing out early on the EOD run, as it closed Day 1 at $46.46 but then got a nod from Jim Cramer on Friday morning, which sent the stock climbing up a Day 2 close of $48.74, and an after hours run that culminated in a top at $53.20. I suspect this one has further to run in the upcoming week.

Udemy (UDMY) offered a gift in the form of a debut a full $2 below the IPO price, and further low-ball entry opportunities down as far as $26.01 before it righted ship and baselined just above $27 for most of the day. No big run yet, but it did peak at $27.75 in after market trading, and we have yet to see what kind of Day 2 activity it will see. Ed-tech firms like DUOL and COUR took a few days to run, and while the IPO market was cool this week, the overall market is hot, so we may see this one climb a bit further once retail traders recognize the opportunity.

HireRight Holdings (HRT) was nothing to get excited about, and not really worth the effort of trading it given the other plays in IPO Land this week. If you did end up playing it, hopefully you undercut the debut price and avoided getting in at the $18.01 debut, as it immediately crashed down to $17.51 at what initially appeared to be a bottom. Unfortunately, from there it found a further base at $17.25. If you doubled up and brought your cost basis down to $17.30-17.40, you put yourself in a position to take a small win or at least a non-loss when it climbed back to as high as $17.75, but if you didn’t take that opportunity to pull the rip cord, you fell further down to a bottom of $17.11
Altogether, not a disastrous position to be down less than a $1 form the debut, but a lot of time and energy would have been required to turn this play into a winner, and not much apparent upside either, which is why this was a non-starter for me to begin with.

Airsculpt Technologies (AIRS) here’s where undercutting the debut ended up biting you in the ass: on the surface, AIRS looked pretty weak when it cut it’s flow by 10% and dramatically reduced its IPO price. But this was all the more enticing to IPO day traders, and from it’s debut price at $12.84 it ripped through two upward halts to a peak of $18.04 which would prove the be the high of the day. The smart move on this setup is to sell a piece of your position out of each halt, in which case you banked exits at $14.00 and $15.63 on those portions of your trade. If you managed to time the peak at $18.00 that’s a pretty bold move, though holding a portion for a longer climb would have also offered a peak at $17.50 at around 2:00 PM EST, and you ultimately had all day to sell above $15.00, so if you bought the debut, you made money on this trade.

Marpai (MRAI) continued the trend of low-float IPOs that have been relatively safe trades. Day traders have keyed in on these, and tend to move in later in Day 1 or in the following days, so buying a position on the debut or opening dip has proven a winning strategy for patient traders willing to wait for the runup. It also helps if you’re trading on a platform that has early pre-market hours. MRAI debuted at $4.38, and for the first 30 minutes of trading, moved downwards to a bottom of $3.80. I was in no rush to buy the debut, and figured I’d take a play if it dipped below $4.00. Got a small fill, and decided to ride it up to $5.00 for an easy 20% win. However, if you held it overnight and sold in the early pre-market hours on Day 2, you could have taken as much as $7.11 on the trade, though it also traded as high as $6.31 on Day 3 in regular market trading. The lesson here, is that ultra-low float is hot right now (we’ll keep this in mind as we move into next week’s trades).

Biofrontera (BFRI) another low floater, an uplisting, but still, worth riding the trend when it’s hot. Debuted at $4.09, quick dip to $3.90, then a two minute climb to $4.70. The Level 2 data clearly showed a huge sell was at $4.70, so my exit was at $4.65. Not a huge win, but not much time spent cashing out, so happy to get in/out for a profit. It was a pretty painless trade regardless of your entry, as it stabilized in the $4.30 to $4.50 range, despite a drop off at the 2:00 EST mark down to $4.00 again, it rebounded sharply going into the close at $4.41. Maybe this gets picked up by day traders next week, but it’s an uplisting, so not gonna get too excited about it. Just worth playing these low floaters for now and some will run, others like this one appear to have low downside risk anyway.

Sonendo (SONX) not low enough of a float to become a day trading target, this biotech debuted at $9.02, climbed up to $10.00 and kind of swung between those marks for the rest of the day. I don’t care too much for this kind of setup, so not gonna discuss it too much beyond that.

Entrada Therapeutics (TRDA) is the kind of biotech debut that gives me nightmares, and provided a clear example as to why I avoid these… debuted at $26.50, briefly climbed to a peak of $28.89 in the second minute, but jumped off a cliff from there, finding it’s first bottom at $23.11 and then after baselining at $23, fell further to $22.20 at the turn of Power Hour before climbing back as high as $26.00 before closing on an plunge from $26.00 to $23.95 in the final minute.

Aura Biosciences (AURA) is the kind of biotech debut that keeps the dangerous FOMO alive and occasionally temps me into misguided biotech IPOs, with a debut at $14.10, and after essentially base-lining at $14.00 for the opening hour and a half, embarked on a steady climb into the $15.50 range until it pushed into an EOD frenzied run up to a high of $18.37. I can’t imagine having the patience to hold this one all the way through to the peak anyway, and trading this wasn’t even a consideration for me, but it does show that there are opportunities in biotech… just enough to sometimes get me to break my own rules (just long enough to be reminded why these are generally to be avoided).

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Reminder: I’ll be on Benzinga Pro at 12:00 PM EST to review last week’s winning IPO trades and a preview of the upcoming IPOs for next week:

https://www.youtube.com/watch?v=IOL7mhfb5Eo

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Oh, and if I helped you take profits on IPO trades this past week, or if you just feel like supporting me for the time and effort I put into this research, please consider making a donation to my whiskey fund:

https://www.buymeacoffee.com/hammondish

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. Trading equities is risky. Do your own research,and trade your own trade.

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IPO Trading Review for the Week of October 18-22, 2021

IPO Trading Review for the Week of October 18-22, 2021

October 25th, 2021

Of course, I take a half a week off, and it turns out to coincide with some of the hottest day trading sessions of the past few months, including some substantial win opportunities on IPOs that offered rather easy profit picking. The good news, is that should the trend continue, we’ve got some interesting IPOs on the calendar for this week (but will get to that in the next newsletter).

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Before we jump into last week’s IPO debuts, remember to catch me on Benzinga Pro on Monday at 12:00 Noon EST to recap last week’s winning IPO trades and review this weeks IPO debuts:

https://www.youtube.com/watch?v=B11OMLXFhk0

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Ok, let’s take a look at last week’s winners and losers:

Stronghold Digital Mining (SDIG) With Bitcoin soaring to all time highs, the market was primed for this debut, which went live at $27.00 – a debut premium over 40% higher than the IPO price of $19.00: but it still carried its momentum out the gates, initially flagging at $30.00 before pushing higher still to a peak of $31.90. But from there it ran out of steam, and trailed off for the remainder of the week, dipping below the debut price early in Day 2 trading, fading out to a close at $25.36 by the end of the week. This was a debut in which taking profits early made a lot of sense, given that it was approaching a 70% premium on the IPO price when it approached $32 on the opening run, and BTCUSD dropped back down below the $60 line. When valuation reaches an unhinged peak on a momentum play, you have to expect things to cool off quickly if the underlying trend reverses: in this case, Bitcoin’s parabolic moves upwards leading up to the IPO made this an obvious play on Wednesday, and the corresponding drop in BTC indicated time to move on from this trade. Pretty similar to COIN’s debut actually, though a less prominent name for sure.
This was the only IPO I played last week, and took profits at the $30 mark with a limit order set just under that to ensure I got out with a win. I likely would have given it a little more room to run past $30 and switched to a trailing stop-loss exit had I been sitting at my desk and able to manage the trade more closely, but given that I was on vacation, was happy to get out quickly, bank profits, and go spend time with my family.

Vita Coco Water (COCO) retail demand didn’t show up for this healthy drink maker, as it debuted at $15.37, though it did make a brief run up to $16.52 before dipping, bouncing, and finally dropping.. so if you bought on the debut, and set a trailing stop loss at say, $15.50 or $16.00 on its way up, you got stopped out with a small win and avoided the steady decay throughout the remaining duration of Day 1 to a bottom print at the close of $13.52… Day 2 provided a glimmer of hope as it climbed back up to $14.62, but it couldn’t break out: too many hot plays in the market for this to get any attention, and it fizzled out to close the week at $13.95. Not all that much interest in this play quite yet, although it traded 9.66M shares on Day 1 (out of a float of just 11.5M shares); by Day 2, the volume had dropped to just 1.8M shares… and I expect this to be pretty thinly traded from here. If you’re bag holding, there stands a reasonable chance for it to recover back to $15, but you may need to be patient and take an out before that, as pretty much every sharehold is bag holding at this point.

P10 Inc (PX) aside from an anomalous spike down after the first 10 minutes of trading to $11.31, and another outlier spike in the final minute of Day 1 trading up to $12.70, this one hasn’t move much from it’s debut price of $12.16: with a lower limit being held at $12.00 and upper limit at $12.50. I’ve come to recognize that financial management IPOs (along with community banks), are not all that volatile on their debuts. This was an uplisting to begin with, and given the pattern of a lack of volatility in these types of IPOs, I’ll be hands-off these types of IPOs going forward. Not particularly dangerous, but the upside is so minimal that they hardly warrant the time and capital allocation to justify playing one of these, especially with much more exciting potential on the table…

Portillo’s (PTLO) Following the solid debut performance of FWRG, and meteoric jump off the BROS IPO (we can throw DNUT in there as well), I’m putting regional food chain IPOs back on the menu. These have been red-hot, and I am finally convinced that they are solid debut plays, though it took me longer than it should have to accept this as a high-conviction trade with strong potential to play out as a Day 2 Runner. PTLO debuted at $26.00 and pretty much climbed straight up from there – hitting a high of $31.87 on Day 1. But debut buyers who held through to Day 2 were treated to a steady climb they would truly relish: as it peaked at $44.92 for a hot dog of a trade with a potential 70%+ win. It would be pretty hard to have led this one all the way through to the peak, but if you made it to Day 2 with a portion still in your basket, you very likely came away with a 10-point win or more: so congratulations.

I do now recognize the appeal of these regional chain IPOs, and I want to dig into this topic a little further. I believe these work for a few reasons:
First, they seem to have somewhat fanatical local fan bases who love their products and are eager to get in on the debut.
Second, they are in a position to grab market share in the post-pandemic economy where many restaurants have gone out of business entirely.
Third, for the most part, they have been profitable on a local level.
Fourth, so the growth story is easy to read: if they were profitable on a local level, why not raise a bunch of money to fund expansion… duh.
Fifth, they make a great overnight media story in their local markets, which seems to fuel a Day 2 run.
And finally, now that a few of them have run, the market is keen on catching the ‘next one’.

Enfusion (ENFN) was one of those IPO debuts that I wanted to like, given it’s steady growth and strong financial baseline, but just didn’t really capture much retail interest and didn’t offer much upside, though it didn’t present much downside movement either. Kind of a boring trade if you got into it and didn’t lock in a stop loss above the debut entry point, as it opened up at $20.09 and bounced around for a few minutes before making a short run up to $20.92 before falling back down to a low of $19.63, from which it recovered back above $20… but mostly just hung in the range of $20.00 to $20.40 for the rest of the day, with no real break out until 30 minutes before the closing bell, if you can even call it that, as it spike up to a high of the day at $20.98. So if you sat around all day playing this one and decided to take profits at $20.95, then congratulations: but I’d be pretty disappointed if I had chosen to play this one instead of say, PTLO… which is most likely what I would have done had I not been off work on Thursday, so maybe better that I wasn’t online for this one.

Runway Growth Financial (RWAY) given that I couldn’t find much information about this IPO, and no one was talking about it online, it’s no surprise that it dropped from it’s $12.85 debut, but really, it stayed true to the format we’ve come to expect from financial companies: and the opening dip wasn’t that dramatic as it found a bottom at $12.45 and then quickly reversed back to a high of $13.29. It was pretty much level playing from there, as it reverted back to a base of $12.80 and closed Day 1 almost exactly where it started at $12.90. Gonna just pass on banks and financial companies going forward, doubt I’ll do much more than a cursory write up on these as well.

Aris Water Solutions (ARIS) lived down to the anemic expectations I had for it’s debut, as it opened at $15.85 and promptly crashed down to $13.70before steadily recovering back towards $15.00 before falling off at the end of the day to close at $14.30. When a company IPOs with both negative growth numbers and negative financial baseline numbers, you can’t expect strong retail demand, so the only play here was to try a time the bottom and hope you didn’t catch a falling knife. I don’t recommend this approach on a company that doesn’t appear to have any positive catalysts on the near-term horizon either.

Ventyx Biosciences (VTYX) what I hate about this one, is that it is exactly this kind of pharmaceutical IPO debut that makes me think to myself, “I know pharma debuts tend to bomb, and I understand almost nothing about this company’s products or market, but f—kit, why not play this and see if I get lucky”
9 times out of 10 they are complete failures, but that 10th time comes along, and you get what we saw here: a debut at $18.65 that ran to a high of
$22.30 on Day 1, and after what must have felt like a sharp pain the gut for anyone who held into Day 2 as it crashed down to $16.33, anyone who stuck to their guns and waited for a couple hours would have been elated to catch the reversal back up to an all time high of $25.83 – realistically, this would have been a very tough peak to catch on Day 2: once you’re down as far as you would have been on that Day 2 drop, you’re probably looking to get off the roller coaster once you’re given the opportunity to de-board with your initial investment in your pocket. So on the off-chance that I did get suckered into trading this one, I’d like to think I would have taken profits on Day 1, and intend to learn nothing from this trade other than to treat it like a bad drug that will hurt you more often than it will heal you.

Minerva Surgical (UTRS) despite the impressive growth numbers and memorable ticker symbol, the low float of just 6.25M shares was not enough to bring much interest into this IPO debut, which opened at $9.66 before tumbling down the side of a mountain for most of the remainder of the day until it hit $7.60 with about 15 minutes of trading left before sharply rebounding back up to $9.00 at the close. If you tried to buy the dip off the opening, and averaged down as it continued to fall, you were given an out at the close… but that’s a long time to spend on a break-even trade, and probably why I would have let this one pass.

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And that wraps up last week’s IPO trades. Be sure to catch me on Benzinga Pro at Noon EST on Monday.

https://www.youtube.com/watch?v=B11OMLXFhk0

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Note: the information in this article is not financial advice, and I am not a financial advisor – this is just information, so use it accordingly and do you own research before making your own decisions on how to trade. Trading stocks is risky, and you could lose money. Past performance is not indicative of future performance. I have or may take positions in the equities mentioned in this article… just, ya know, don’t blame others for your mistakes, and appreciate those who take their time to share ideas with others. Good luck out there.

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