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IPOWarriors IPO Preview for August 2 – August 6, 2021

August 4th, 2021

We’re looking at the IPO Calendar this week and discussing potential trading strategies for taking some quick profits.

Sending these out a little later in the week, as the calendar has been shifty, and no IPOs were listed for Monday or Tuesday… trying to bring you the most accurate information while giving you time to put together a trading strategy.

Elicio Therapeutics (ELTX) – August ?, 2021 | 3.08M Shares
This clinical stage biotech creates immunotherapies for cancer treatments, has a super-low float, and that’s about as much as I understand about this play. Won’t likely be worth playing, as low-float hasn’t attracted much interest on its own for the last couple weeks. The IPO date on this one has moved around a bit, so it may not even go live this week, but I’ll be keeping an eye on it if it does (but not likely to play it).

Clarios International (BTRY) – August ?, 2021 | 88M Shares
This one got rescheduled from last week, and has not been confirmed to trade this week, but it is a strong company, so I’ll be watching to see if they go forward with their IPO this week.

The Better Being Co. (BBCO) – August 4, 2021 | 12.5M Shares
This neutraceuticals vendor sells vitamins, supplements, and minerals through multiple-channels and competes in a growing but rather crowded market. They have some strong brand recognition, and boast growing revenue and operating profit: boosted by pandemic conditions, but I’ll be watching the debut price to see if I feel like jumping in on this one. We’ve simply seen too many recent IPOs drop off the debut before stabilizing and rebounding. So if we see a debut price at or below the IPO price combined with an initial drop, a rebound trade might be in the cards, as the lowish float could inspire a run back up to the IPO price.

Context Therapeutics (CNTX) – August 4, 2021 | 1.5M Shares
This clinical-stage biotech focuses on treating cancers that primarily affect women. I’d stay out of this one and ignore it altogether were it not for the incredibly low float of just 1.5M shares. However, I don’t see any Twitter chatter or hype building this up, so at this point it’s a pass… might watch for an opening dip: these ultra-low float plays seem to somehow catch on throughout the trading day, especially if we see any kind of active movement that would get picked up on day trader’s scanners.

CADRE Holdings (CDRE) – August 5, 2021 | 7.1M Shares
This 55-year-old company produces emergency equipment for first responders. It is a profitable company, but COVID didn’t help their bottom line. I don’t think there’s much retail brand recognition for this one, and there are a bunch of other IPOs on Thursday, so I’m gonna focus on other plays.

European Wax Center (EWCZ) – August 5, 2021 | 10.6M Shares
This one could be more interesting than I recognize, as I am not their target customer (mostly women getting their legs and, er, other body parts waxed at salons and spas. This company was hard hit by COVID, and is therefore, perhaps a solid ‘re-opening play’. However, at the time of writing this newsletter, re-opening plays are struggling, so I’m not sure this one will catch a lot of immediate demand. Think I’ll avoid this one since I don’t have a strong feeling about it, and with COVID variants in the headlines, not sure a product that relies on salons for business will be a clear winner.

WCG Clinical (WCGC) – August 5, 2021 | 45M Shares
This company handles clinical trials for biotechs, which is a service that is in high demand and something that many pharmaceutical companies would prefer to outsource than handle themselves. They are experiencing growth and near-break even operating costs. I believe this could be one of those companies that gets a lot of institutional money, and will look to possibly play this if we see a drop off the debut, especially if the debut premium is limited.

Weber Grills (WEBR) – August 5, 2021 | 46.9M Shares
This one is interesting for a number of reasons, primarily the strong retail brand name recognition, impressive financials, and plays into the COVID lockdown theme. Even though the float is rather large, this one should get substantial retain interest across the board, so I like this one for a debut play.

Healthcare Royalty (HCRX) – August 6, 2021 | 46.9M Shares
This company acquires royalty rights in the healthcare industry, with receipts up 60% in 2020 – indicating that they are choosing investments wisely. This is the kind of company that institutional investors are likely to be drawn towards: the kind of trade that I’ve recently overlooked on account of being “boring”, but have performed rather steadily on their debuts. I like this one especially if we get any kind of dip or debut below the IPO price.

ROX Financial (ROXA) – August 5, 2021 | 8.25M Shares
Aiming at expanding access to commercial real estate investment opportunities, there isn’t a lot of information provided on the RoxFinancial.com website or elsewhere. Apparently they also operate a single last-mile logistics facility for Amazon, but appear to be a very early stage company with about $1M in Net Income in each of the past 2 quarters. The primary purpose of the IPO fundraising appears to be the purchase of the facility they operate, and associated transaction costs, and they indicate a 3% annual yield, which is rather low for a single-tenant REIT. I don’t see anything particularly exciting about this, but am always intrigued whenever something so vaguely described and thinly established files to go public with a relatively low float.

Adagio Therapeutics (ADGI) – August 6, 2021 | 17.7M Shares
A clinical-stage biopharmaceutical company focused on antibody-based solutions for infectious diseases: with a focus on COVID (SARS-CoV-2, SARS-CoV-1, and potential emergent coronaviruses). I usually don’t play biotechs, but given what we saw with ICVX last week, this one could be worth a play.

Aspire Global (ASPG) – August 6, 2021 | 15M Shares
An OEM for vaping products based out of China with primary markets in the USA and Canada. Given the moratorium on China-based IPOs, I’m somewhat surprised that this one is going live at all, and given the regulatory risks associated with both Chinese stocks and vaping technologies, I don’t really want to get involved with this one, and feel many other retail traders will feel similarly.

Note: I’m not a licensed financial advisor, this is not financial advice: it’s just information. I am likely to take a position in some of the equities mentioned in this article. Good luck!

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