Catch The IPO Warrior on Benzinga Premarket Prep LIVE on Monday Morning (May 3, 2021) at 9:00 AM EST

Before we get into Next Week’s IPOs, let’s take a look at Last Week’s Potential Winning IPO trades:

Privia Health (PRVA) – Win potential: 25%+
Privia Health debuted at $30.00, and after a choppy opening that would have stopped out anyone playing this conservatively with a stop-loss, traded upward for the rest of the day through a series of peaks and drops before spiking at the end of the day as high as $35.99. Day 2 started with a deep drop with an instant rebound, where it stabilized in $33 to $35 range, before gapping up to a peak of $37.85.
This play would have required a high-conviction hypothesis to let it ride to the peaks, or at least a forgiving stop-loss approach that allowed for an initial drop to $29.00 and not raising it beyond the debut price to let it trade out.

Werewolf Therapeutics (HOWL) – Win potential 30%+
Debuting with a super-cool ticker and a low float that attracted the day trading trend players, HOWL debuted at $18.21 and offered a rather easy play for a nice profit take, as it closed the first minute of trading at $19.00 and never dropped below the debut price while it found it’s footing in the $18.50 range before shooting up into a halt at $21.04 in the 6th minute of trading. It then gapped up out of the halt, opening at $23.59, and ultimately peaked at $23.99 before quickly dropping back down and consolidating in the $20-22 range for the rest of the day, before dropping off at the end of the day.
The sensible trade here was to watch it out of the open, perhaps with a stop loss set at the debut price, and then sell out of the halt with a limit order.

Vaccitech (VACC) – Win potential 20%
VACC was a pretty straightforward play, as long as you let it ride for the opening minutes without a stop loss, as it dipped from the debut price of $13.60 down as low as $12.77 before quickly reversing up to $14.17 and continuing up to a peak of $16.27 over the next 90 minutes. A momentary hard drop down to $14.00 would have stopped anyone with a tight stop loss out before the high, but a more tolerant approach that protected the downside with a stop loss at the debut or any price below VWAP would have allowed for max-gain potential.

Ok, So Now Let’s Take a Look at What’s on the IPO Calendar for this Week:

Alfi, Inc. (ALFI) – Tuesday May 4, 2021
ALF provides an in-situ SaaS advertising platform that uses AI and cameras to identify demographic information about viewers and uses that information to target relevant advertising on public kiosks, tablets, and interactive screens. Think, AI driven advertising in airports, ride-shares, doctor’s offices, etc.
They don’t have any revenue, but do have 12 pilot projects operating on over 1,000 devices, and claim to have generated click through rates over 15%, which is pretty impressive.
While all of this is somewhat compelling, what really makes this an interesting IPO trade, is the low-float of just 3M shares, though there are also 3M 1:1 warrants being issued under the ticker ALFIW.
It looks like ALF is already getting some buzz on social media, and despite being a ClickIPO offering, appears to be poised for a multi-halt opening. My strategy will be to open a large limit order above the Indication Price to secure my position instantly at the debut price. I will likely sell 20% coming out of the initial halt, 20-40% out of a second halt if it halts again, and then play the rest by ear. If there’s a 3rd halt, I will exit completely on the open after the 3rd halt.

The Honest Company (HNST) – Wednesday May 5, 2021
HNST is a blue-chip IPO in the sense that the company is owned and represented by a famous celebrity (Jennifer Alba), and generated over $300M in revenue in 2020: with robust sales volume on its baby wipes, lotions, and other consumer goods with organic that specifically benefited from the stay-at-home trend. HNST sells consumer goods that are positioned as eco-friendly, natural, and ethically sourced, through its website ( www.honest.com ) and through other 3rd party websites such as iHerb and Amazon.
This IPO will get plenty of media attention and social buzz, and is well poised to make a 2-day run. My strategy will be to buy a large position on the debut with a limit order above the IPO price, and hold it for an expected Day 2 run.

Five Star Bankcorp (FSBC) – Wednesday May 5, 2021
Small bank in Northern California. Low float of just 5.26M Shares, but nothing to indicate substantial demand of volatility.

Bowman Consulting Group (BWMN) – Thursday May 6, 2021
BWMN is an engineering and planning consultancy with over 2,000 clients, with a range of services including civil engineering, construction, and structural engineering. The low-float of just 3M shares might garner some attention from the day trading regiment, but it’s hard to otherwise see this as getting much attention from retail traders. With no other IPOs on Thursday, I might play this with a small position just to see if it does catch fire, but will be ready to get out with a stop-loss if it doesn’t immediately take off to the upside.

Transcode Therapeutics (RNAZ) – Friday May 7, 2021
Pre-clinical biotech company with an RNA oncology platform based on nano-particles that target metastatic cancer cells. Hmm… mmkay. We discussed this one last week, as it was rescheduled to this week, and asides from a low-float of just 2.7M shares, is hard to gauge. This one does appear to be on the radar of some traders on Twitter, so it could easily spike off the debut, but given that it’s a ClickIPO offering and a biotech, I’ll be playing it with a smaller trade and will take at least 50% out if we get an initial halt, and unlikely to hold beyond a second halt.

Anebulo Pharmaceuticals (ANEB) – Friday May 7, 2021
This is an interesting pre-clinical biotech for two reasons: one is that it is developing solutions for cannabinoid overdose and addition: so, it’s the anti-weed medication… and can you guess the other reason? Yup, it has a low float of just 3M shares. I’ll be watching Twitter to see if traders get wind of this one, and gauge my entry allocation accordingly. May have to decide between RNAZ and this one, in which case, I’ll go with the weed trend and pick ANEB.

iPower (IPW) – Friday May 7, 2021
iPower is a leading online retailer of hydroponic equipment in North America, and sells its products through its website at zenhydro.com and other 3rd party ecommerce platforms. There’s a lot to like about this one, as it is profitable, and picked up a lot of new customers during Covid. For those of you who don’t understand what ‘hydroponic equipment’ is or why it would be such an in-demand product, it’s the equipment like lights, fans, pumps, irrigation, etc. – that is used to grow marijuana indoors. And guess what, now that weed is legal in 17 states, people are growing it themselves… as are larger growing operations. I expect IPW to perform similarly to HYFM and will play this with a large buy on the debut with a limit order above the indication price, and hold for a Day 2 rally. With just 5M shares being floated in the IPO, I expect this one could fly.

Onion Global (OG) – Friday May 7, 2021
So, here we have a Chinese IPO that is a bit hard to asses, as I’ve never heard of them, their app, or their platform. Based on what I could translate off their website (thanks Google Translate), it appears to be some kind of multi-level-marketing driven ‘social ecommerce platform’. I asked one of my friends in China if he’d every heard of them, and he had NOT. Some of these Chinese IPOs – even those without super-low floats – have gone completely bonkers: RAAS, WNW, RLX… to name a few. Given the full slate of IPOs on Friday, I’m not sure if I’ll be in a position to play this one, and if I do, it will be for a small token play to see if it goes wild. 12.5M share float, so not super-huge, but it would really have to catch on in the Chinese market for this to run… a possible Day 2 surge is always possible with these things, but I’m not sure it’s worth the downside risk, given the other opportunities on the table for Friday’s slate.

Catch The IPO Warrior on Benzinga Premarket Prep LIVE on Monday Morning (May 3, 2021) at 9:00 AM EST

Reminder: The information contained in this newsletter, and any other information you get from IPOWarrior is NOT intended as financial or investment advice and is for informational purposes only. Trade your own trade. Walk your own path. Dance to the beat of your own drum. Wipe your own bum. And be sure to put away your toys when you’re done playing with them. In short, take responsibility for your own actions and don’t blame other people when things don’t work out as you had hoped. With all that being said, good luck in the week ahead, and May the 4th be with you…

… always.