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IPO Trading Review for the Week of Nov 29, 2021 – Dec 3, 2021

December 3rd, 2021

So, this last week we didn’t have any IPOs on the calendar, but a spin-off debut did manage to sneak past, us (sorta)… and the respite offered me a chance to further demonstrate my lack of abilities as a day trader who makes boredom-induced trades in the absence of IPOs that generally wreak havoc on my portfolio…

Ok, so here’s what happened in terms of the IPOs:

OceanPal (OP) – So on Tuesday, November 30th, 2021 – out of the blue, a halt alert showed me that ‘OP’ had halted at roughly 9:32 AM EST, and as I typically do when I get such alerts, I check out the chart and look for news headlines to see what it’s about. To my surprise, I noticed that it was a spin-off from Diana Shipping, Inc. with little other information available. The stock had opened for trading at exactly 9:30 AM EST: so none of that typical pre-debut imbalance stuff, and it immediately sank down into a halt at $3.56 on less than 500 shares traded.

My interest was piqued, and while I thought about entering a trade, but knew that I had to go pick up my daughter from school in a little over an hour… the halt lasted for over an hour, so I abandoned any thought of getting involved with it… and it turned out to be quite a wild ride from there: opening from the initial halt back at $5.00… halting, and then ripping through 4 more halts up to a high of $12.07 before quickly dropping back down below $5, and then swung back up to $8.90 before trailing off to close at $5.22… but it wasn’t done quite yet… in after hours it once again swung up to a high of $11.91, and has since faded out to close the week at $4.10.

The SEC filings were not the usual S-1 or F-1 that I’m used to seeing, and I didn’t have time to suss it out during the halt, but it appears that the volatility was likely due to simply day traders picking up the first halt, and then tiny volume resulting in repeated halts in each direction. These can be a fun gamble, but without any chance to prepare for it, was a pretty tough one to have caught.

Still no Stealth IPOs… and with the de-listing of DIDI along with a general anti sentiment towards all Chinese stocks, we have to assume any Chinese listing, uplisting, or share offering to be suspicious. Having said that, PETZ is still up above $4, though not too much life there beyond an odd spike here and there. Volume is down, and it still hasn’t been sold off into oblivion, so perhaps there is still a run in the cards. I’m getting kind of weary of holding my position any longer, so likely to bail at the first sign of upward movement to $5…
We had PLIN on watch, which has seem to have hit the $2.00-2.20 mark and cooled stopped moving much. The warrants that put this one on watch should mature around January 22, 2022, so as that date approaches, we may see a move, or possibly a sell-off: hard to know for sure. I was in at $1.40 and lost patience and sold at $2.20.
Another one that caught our attention this week is TANH – a share offering underwritten by Aegis Capital at $0.65 when the share price was at roughly $0.90… the stock spiked at the end of the day to $1.50 but has since sunk to the $0.65 level, and traded between $0.55-0.65. Seems to be pinned there by unusually large buy and sell walls, so unsure of what the plan is there. Sitting on a smallish position just in case they run it.
No word on GSUN or MULG, but it seems like things have cooled off until next year. Then again, we can’t get too complacent: the whole point of the Stealth IPO is to catch us off-guard. We’ll be vigilant and let you know if we hear any suspicious whispers.

And there ARE some IPOs scheduled for next week (hurray!). Stay tuned for links to Monday’s Benzinga Live show at 12:00 PM EST (Noon), and I’ll cover these in next week’s newsletter as well.

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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