So, I already sent out the review of last week’s IPO trades last night, and intend to start sending the weekly reviews out on Sunday evening with the preview of the week’s upcoming IPOs being sent out on Mondays.
We’ve got a full slate of IPOs this week, so let’s jump right in!
Acurx Pharmaceuticals (ACXP) – June 15, 2021
ACXP kicks off the first of a full slate of low-float biotech IPOs this week, and could set the tone for day trader sentiment on IPOs that get targeted simply for having an ultra-low float. The other feature of this IPO that is interesting is that the underwriter is Network 1 Financial: who brought us TIRX, AUVI, and a few other low-float IPOs that gave substantial immediate gains.
The company itself focuses on a new class of antibiotics for ‘Priority Pathogens’ as classified by the WHO, and has been granted FDA Fast Track designation for its Ibezapolstat drug candidate, which is currently in Phase II.
Though it is listed as having just 3 employees, it does boast a board and advisers consisting of PhD’s from Harvard, UCLA, and other prestigious universities, so it doesn’t look like a sham company.
Given the super low float of just 2.5M shares, I’ll likely take a play on this one, while being prepared to jump ship early if we don’t get an initial jump, and take profits out right away if we do get an upward halt on the debut.
AMTD Digital (HKD) – June 15, 2021
AMTD Digital is a spin-off from the AMTD, and is a fintech operating in Asia, with one of just 8 Hong Kong licenses for digital banking services, and applications in the pipeline for similarly scare licenses in Singapore and Malaysia. Though profits and revenue have been slowing down, this looks like a solid play, with just 16M shares to keep this from being an over-saturated debut.
WalkMe (WKME) – June 16, 2021
WalkMe helps companies get their employees familiar with using new software platforms they’ve incorporated into their business operations, and is used by enterprises including LinkedIn, Okta, Twilio, Adobe, Microsoft, and many other recognizable brands. While they are not cashflow positive, they do have growing gross profits and revenue, and the low float of 9.25M shares makes this one an attractive IPO play for me.
Molecular Partners (MOLN) – June 16, 2021
This is a biotech with a proprietary ‘DARPin’ platform that utilizes ankyrin repeat proteins to focus on infectious disease, oncology, and ophthalmology… yeah, kind of a head-scratcher. BUT they are developing two treatments for Coronavirus with Novartis… so with just 3M shares being offered, this could be an interesting play, particularly if we see a pop in ACXP on Tuesday, and day traders start looking for the next low-float IPO play.
Convey Holdings (CNVY) – June 16, 2021
Convey provides a health plan management software that is generating growth and operating profits, so this sounds like one to keep an eye on. With a modest float of just 13.3M shares, it’s compelling enough to play this IPO. I don’t expect it to run for huge profits, but don’t expect it to price at a huge premium, so the downside should be minimal.
Lyell Immunopharma (LYEL) – June 17, 2021
Moving into the back half of the week, we have a full deck of biotech IPOs that, to be honest, I don’t have much insight to offer. I generally avoid these, as the downside risk seems equal to the potential for an upside run, and biotechs have not offered the same resiliency to rebound from Day 1 dips as tech/growth stocks typically do. So for me, this one is a pass.
Unicycive Therapeutics (UNCY) – June 17, 2021
This biotech focuses on kidney disease and repair, and despite an ultra-low float of just 2.63M shares, is likely a pass for me, given the generally poor performance of Roth Capital underwritten IPOs. Unless we see huge jumps in the other low-float biotech IPOs earlier in the week, this one is probably one I will avoid. However, if we see big runs by MOLN and ACXP, and day traders start hyping UNCY, it may be something to jump in on. Undecided at this point, but likely will be on the sidelines and taking notes.
Angel Oak Mortgage (AOMR) – June 17, 2021
A mortgage company that focuses on non-qualified residential mortgages is perhaps an IPO that would have done really well a year ago, but I’m not sure the tail-end of the COVID-induced housing boom is going to offer much upside for this debut. Just 8M shares, and yes, LDI ran hard on it’s debut back in February 2021, but since then has fallen, so AOMR is most likely a pass for me.
iSpecimen (ISPC) – June 17, 2021
Billed as an “Amazon for biospecimens“, this IPO has flown under the radar and is not even listed on the NASDAQ IPO calendar for this week, where it will be listed.But that doesn’t mean it’s not an interesting play: with just 2M shares being floated, if this catches any kind of retail interest, it could jump. I’ll be keeping an eye on it, and likely playing it with at least a small position just to see if the low-float is enough to boost it off the debut.
Atai Life Sciences (ATAI) – June 18, 2021
With backing from Peter Thiel, this is the rare biotech that has me excited due to its focus on developing mental health cures using psychedelics. Other companies in this space, including MNMD have see large gains in the past few months, and retail interest is high in these names. With 14M shares, I see demand for this company outstripping supply on the debut, and feel it is a strong candidate for a multiple day run.
AnHuiShou (RERE) – June 18, 2021
Backed by JD.com, this company operates an electronics recycling service that repairs, refurbishes, and resells mobile phones and laptops within China’s massive electronics marketplace, and distributes within China and to developing countries. While not yet profitable, revenue is accelerating and losses are shrinking. Combine this growth with a below-average float of 16.2M shares and the fact that it’s a Chinese IPO, and you’ve got a debut that I do not want to miss.
Codex DNA (DNAY) – June 18, 2021
Here we have another synthetic biology firm – similar to ZY, whose IPO initially dipped but staged a Day 2 comeback and then continued to climb for several days from there on the back of Cathie Wood buying. There is a lot of interest in synthetic biology, so this one could be interesting, along with a low float of just 6.7M shares that will give it a low-supply advantage if retail demand does show up. I’ll be keeping an eye on the social buzz around this one, and will likely play it for a medium position, depending on what stocks I’m still holding by the end of the week.
Verve Therapeutics (VERV) – June 18, 2021
As Google’s first biotech backing, Verve is developing a gene-editing approach to targeting cholesterol. This might be the week where I break my rule against playing non-low-float biotechs (again), and VERV might be the one that breaks my resolve. So if history repeats itself, this will bomb. But it does sound interesting given Google’s support. The float hasn’t been announced, and a lot can happen by the end of the week, so I’ll be updating my opinion on this play throughout the week and likely won’t make a final decision until I see the indication price on the day of the IPO.
Cyteir Therapeutics (CYT) – June 18, 2021
This is a biotech focused on precision oncology molecules that utilize an approach called “synthetic lethality”.. which sounds cool, but I know nothing about this stuff, and have no reason to deviate from my rule about not playing biotech IPOs. Float hasn’t been announced yet, but should be around 7M shares. Anyway, this is non-interesting to me.
Ambryx Biopharma (AMAM) – June 18, 2021
Ambrx has a convoluted history ranging from a failed IPO in 2014, a substantial share sale to a Chinese syndicate, and a recent fundraising round of $200M. I’m gonna skip the details and jump to the conclusion, which is that I’m almost definitely NOT going to play this IPO. I just don’t really play biotech unless there’s something particularly compelling for me to change my mind.
So yeah, we’ve got a full slate of IPOs coming up, and more could be added before we get through the full week. We haven’t seen a Stealth IPO for a few weeks, and this crowded lineup could be the ideal smokescreen for a sneaky debut from one of the usual suspects. I’ll be keeping an eye on my Google alerts, and will send out an update if I catch wind of anything that looks suspicious.
Note: This is not financial advice, I’m not a financial adviser, and you should only use this information for what it is – information. I wish you all a great week of trading, and congratulate all the companies who have made it to their ultimate dreams of debuting their companies’ IPOs. Trade your own trade, and good luck!