As called out in yesterday’s newsletter, EBET ran up through a series of halts off the debut, and offered substantial profit potential both in the initial run and even more at the end of day into after-hours trading.
EBET priced it’s IPO at $6/share, above the initial range of $4-5 per share, and debuted at $21.00. It then ran off 3 consecutive upside halts before triggering a downside halt and crashing back down to $21. But the day wasn’t over for EBET, and those who held or re-entered their positions at the correction were rewarded with an end of day run that reached $36.42 at market close, and an after-hours run that has touched $49.00 and looks poised to follow UTME’s example with a possible Day 2 run that could push even higher.
What was all the hype about? Well, EBET is an eSports and online gambling platform with relatively little established revenue and no profits. More importantly, was the fact that it has a tiny float of just 2.4M shares, and was sponsored by the same underwriter that ran the IPO of UTME – last week’s $11.40 to $107.00 powder keg that blew up through 9 consecutive upwards halts off the debut.
But in case you’re thinking that low-float is all it takes, well, unfortunately, we also saw KRT – floated with just 3.9M shares debut at $18.60 and reach a peak of just $20 before sharply crashing down as low as $17.10 before coming back up to touch $19.95 before fading out to a close of $18.05. Clearly it didn’t inspire the same kind of demand or hype as $EBET, but due to the fact that it didn’t trigger any halts, it was a relatively easy play to take a small profit off the debut with a trailing stop loss… and one of the fundamentals of this strategy is to be in position to catch the winners as often as possible without taking severe losses on the downside.
Is this Tomorrow’s Low-Float Sleeper?
Troika Media Group (TRKA) debuts tomorrow with a small float of just 3.3M shares. Billed as a Global Marketing Services Company with an impressive list of brand names as clients including Apple, Coca-cola, ESPN, Amazon, Netflix, Peloton, and many more.
However, checking their corporate address on Google Maps: Street View ( see here: https://bit.ly/2OWoYUC ) I don’t get the impression that this is the corporate headquarters of a swanky posh LA marketing powerhouse. Furthermore, it’s a ClickIPO offering, that apparently sold out on WeBull already, but that doesn’t ensure it will blow up like UTME or EBET
On the other hand, their S-1 Filing boasts annual gross profits of $13M through June 2020 down from $17.5M through June 2019, and Annual Revenues of $24.6M down from $40.8M the year before and… ok, I know, I know… the only reason anyone would buy this off the debut. Look, it’s a low-float IPO that has some buzz words like “digital media” in it. That’s the point.
… I haven’t quite yet decided what to do here, but will be watching the Indication price tomorrow morning, and if I do jump in with a limit order, I’ll be setting a stop loss to protect the downside right away.
Other IPOs from Today
TuSimple (TSP) – the autonomous semi-truck manufacturer offered a tiny uptick before dropping from $41.50 down to a bottom of $32.13. A day-trade off the bottom would have offered a nice win, but otherwise a bit of a dud IPO play off the debut.
Applovin (APP) – mobile app developer and app advertising platform provider debuted at $70.00 : significantly below it’s IPO price of $80.00, burning ETrade investors who were given the rare opportunity to buy into an IPO at the IPO price (similar to DOCN, which also performed poorly)… closed the day at $65.20 to round out a definitively disappointing debut.
Agilon Health (AGL) – Healthcare play that debuted at $28.25 and offered a small win opportunity with a trailing stop-loss strategy as it ratcheted up 4 green 1-minute candles off the debt before steadily declining for the next half hour to a bottom at $26.50. Bag holder/diamond handed traders were offered a rather immediate reprieve, as it steadily climbed back into green territory over the next 30 minutes and remained positive while bouncing around above VWAP to a high of $31.69 and a close of $31 even. Nothing too exciting, but a win is a win.
More IPOs for April 16, 2021 (tomorrow) include:
Recursion Pharmaceuticals (RXRX)
Biomea Fusion (BMEA)
Akoya Biosciences (AKYA)
So… these are all biotechs about which I, nor most of the general public, know very much about in detail. Sure, these sometimes go up, and sometimes go way down. I tend to stay out of these entirely…
… so asides from watching and potentially getting into a conservative play on TRKA, I’m gonna watch the rest from the sidelines.
Please be advised that the contents of this newsletter, the IPOWarriors.com website, and any other correspondence are NOT intended as financial advice and are for informational purposes only. I am not a financial advisor and don’t want to be one, nor am I a life coach, spiritual guide, baby sitter (other than for my own child), or animal trainer, and otherwise am just trying to make a buck or two off playing IPO debuts and, at least for now, am just sharing my knowledge and passion for making money with the IPOWarrior community. Trade at your own risk!