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IPO Preview for May 24-28

May 23rd, 2021

I’LL BE REVIEWING THIS WEEK’S IPO LINEUP AND TRADING STRATEGIES LIVE ON BENZINGA PRE-MARKET PREP
(I’ll post the link on Twitter once I get it from the guys at Benzinga…
follow my Twitter at https://www.twitter.com/WarriorIPO

Benzinga Pre-Market Prep on:

– Monday, May 24, 2021 at 9:00 AM EST –

Before we jump into the upcoming IPOs for this week, let’s take a look at the winning trades from last week’s IPO activity…

Juizi Holdings (JZXN) – Another Stealth IPO snuck past me this week, as JZXN debuted on Tuesday, May 18th without warning or advanced notice… but this was a good one to have missed. The stock debuted at $45.00, from an IPO price of just $5.00, and briefly climbed to $49.00 before beginning a full-scale tanking that ultimately reached a bottom at $7.00 over the next three days. How a small Chinese EV sales retailer debuts at a 90% premium can only be explained as a price manipulation scheme and demonstrates that not all stealth IPOs are destined to make insane profits. Still, I’ve identified a few more keywords that did appear in the discrete press releases that may have put this on my radar ahead of time, and hope not to miss the ones that do fly up as we have seen in the past.
Oh yeah, and again, this one was underwritten by our friends over at Boustead Securities, LLC.

Squarespace (SQSP) – debuted at $48.00, and as expected this direct listing sold off on Day 1, reaching a bottom of $42.82 towards the end of Day 1. A Day 2 rally brought bag holders a chance to sell out at a non-loss, and further rallies towards the end of Day 2 and into the morning of Day 3 rewarded high-conviction traders with an opportunity to take up to 10% gains at a top of $53.00

Procore (PCOR) – debuted at $84.00, and after a brief dip down just below $80, before the immediate sellers ran out and the low-float kicked in to spur a rally into a short term peak at $86.80, offering for a rather quick profitable exit with either a trailing stop loss or limit order. The low-float combined with large spreads made it a challenging read, so early exits for easy profits were understandably justified. However, those with strong conviction profited on Day 2 rallies as high as $91.99, though the repeated dips below the $84.00 entry point would have made these peaks risky exits.

Oatly (OTLY) – debuted at $22.11 and traded downward as low as $20.75 over the opening hour before curling back up into break-even territory momentarily, before again dropping off into a close of $20.15. After the overnight media cycle brought a fresh wave of buyers who showed up on Day 2, overnight bag holders were given the opportunity to sell at a small profit with a peak of $23.25 before again falling off into the $21.50 level – though an end-of-day rally to close out Day 2 gave all bag holders a chance to exit their positions before the weekend at a slight win at $22.40 – $22.50

Ok, Now let’s look at the IPOs ahead for the week of May 24-28, 2021


Flywire Corp (FLYW) – May 26, 2021
Flywire provides localized payment solutions in over 240 countries/territories in over 130 currencies, with specialized solutions in specific verticals including education, healthcare, travel, and more. The company operates at a significant loss, but has demonstrated strong revenue growth of approximately 38% in both 2020 and 2021… so in an era where growth stocks are over-valued, this is a great play. However, that era seems to have passed a couple months ago, so play this one with caution. A relatively low float of just 8.7M shares makes this an interesting play, but perhaps not the most attractive IPO trade of the day, so I might pass on this one.

Paymentus (PAY) – May 26, 2021
Paymentus is a cloud-based SaaS for bill payment, with over 16 Million consumers and businesses using it’s system in North America. Profitable with 32% Year-over-year growth for the 3 months ending 3/31/2021, PAY is also cash-flow positive but faces very little competition in it’s space: mostly legacy systems and internally developed solutions. Not only does it have a very cool ticker, but it’s also a relatively low-float with just 10M shares. I like this one for a 2 Day play, or possibly longer, and will favor this over the other offerings of the day.

ZIPRecruiter (ZIP) – May 26, 2021
Rounding out the lineup for May 26, is a direct listing by the leading job seeker app on both iOS and Android markets for the past 4 years. Despite being profitable with growing topline revenue, this is a direct listing with over 85M shares, so I’m gonna probably watch this one from the sidelines in order to focus on Paymentus (PAY).

FIGS (FIGS) – May 27, 2021
FIGS is a direct-to-consumer apparel and lifestyle brand that sells to healthcare workers. Yeah, like stylish and well designed scrubs, lab coats, face masks, active wear, and other garments for healthcare workers. Unsurprisingly, the company enjoyed massive growth over the past year due to COVID effects, with 138% net revenue growth from 2019 to 2020, and 118% customer growth over the same period. The company is profitable, and the only question will be whether investors believe the growth will continue beyond COVID. With a moderate float of 22.5M shares, this one is an attractive IPO trade, and I will likely play this for a smaller trade, though it depends on what happens with my PAY position, as I may decide to hold that position beyond a Day 2 trade.

Disclaimer: The information contained in this newsletter is not meant to be financial advice. It is meant ONLY for informational purposes and you’d be wise to only trade IPOs with money you very well could lose. I mean, realistically, I’ve never heard of a company going bankrupt on the day of it’s IPO, so it’s very unlikely that you could lose ALL your money on a short-term trade on an IPO, but this is a crazy time we live in, so always expect the worse and hope for the best. On that note: Trade your own trades, and good luck!


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