So before we jump into this week’s IPO list, let’s take a quick look at a few of the big winners from last week:
InfoBird Co (IFBD): 60%+: InfoBird was on everyone’s watch list due to it’s relatively low float of under 6M shares, and the fact that it’s a Chinese IPO… and it didn’t disappoint. Those hoping for a sustained run like EBET or UTME, may have been disappointed, but those who trimmed their positions out of each of the initial 3 upwards halts and kept a stop loss in for their remaining shares, took solid profits for a substantial win.
Troika Media (TRKA) – non-win: I wanted to touch on TRKA, because it was another low-float play that was being eyed on social media, and immediately halted up on the debut. But unlike IFBD and the other huge low-float gainers, this one failed to continue it’s rise and quickly crashed down into loss territory. A prudent exit strategy to take 50% profits out of the first halt, and a stop-loss above my entry point turned what could have been a loss into a small win.
UIPath (PATH) 20%: UIPath notched a solid Day 1 run, boosted into Day 2 by large purchases announced by Cathie Wood overnight. This is a good example of a high growth tech company that ran for 2 days and rewarded the confident trader who held through the dip at the end of Day 1.
Let’s look at the IPOs for the Week Ahead…
Aveanna Healthcare (AVAH) – 04/28/2021
AVAH provides in-home care services for high-cost patients. With a relatively standard float of 38M shares, I don’t see much reason to expect this one to provide much upside, then again, it probably won’t debut at a huge premium, so buying below the Indication Price or off an initial dip and riding a slight correction could be a low-risk way to nail a few points for a small win.
FTC Solar (FTCI) – 04/28/2021
FTC Solar provides solar trackers and software for solar arrays, and similar recent IPOs offered nice win opportunities (ARRY and SHLS). A bit over-valued perhaps, but relatively low float of just 18M shares, so worth a play. May not run straight out of the gate, so consider trying to undercut the debut price with either a limit order BELOW the pre-trading indication price, or a ‘wait-and-see’ approach; looking to buy off a dip to or below RSI 30.
Transcode Therapeutics (RNAZ) – 04/28/2021
Usually I shy away from bio-techs, but this one brings a super-low float to the IPO debut, with just 2.77M shares being offered. For those who are interested in the company itself, it is developing RNA based treatments that utilize nano-particles to target metastatic cancer cells. Will take the same approach I took with EBET, IFBD, and TRKA to hopefully catch an initial jump, and will be prepared to get out quickly with a stop loss if this doesn’t fly right away.
Fortegra Group (FRF) – 04/29/2021
Specialty Insurer for Business and Consumer Warranties. Pretty small float of just 8.3M shares, but not much to get excited about that would give me confidence in demand pushing this up.
Endeavor Group (EDR) – 04/29/2021
Sports and Entertainment management group that’s been hit pretty hard by Covid restrictions. But their ownership of the UFC alone could be enough to drive interest. I believe this is worth taking a play on – as EDR fits in the categories of “Premium Content”, “Streaming Media”, and… well… ok, just the fact that they own the UFC is enough to make me interested in playing this. 21M shares is a reasonable float, and a Day 2 run seems possible, as headlines announcing their IPO could drive a fresh wave of buyers. I may try to undercut the debut price, pick up additional shares on a dip, and aim or a Day 2 run.
Privia Health (PRVA) – 04/30/2021
This is another healthcare technology play – similar to AGL, which could have yielded a decent win for the patient trader. PRVA provides technology to help physicians optimize their practices and provide more efficient treatment to patients… hmm… ok. Again, will watch it, but more likely to sit this one out on the debut, and watch and see if there’s an obvious entry point off a dip.