I hope you all had a great 4th of July weekend to celebrate last week’s insane week of IPO trading. Some huge wins called out on CPOP and VRAR, and we also were spot on in our avoidance of playing DIDI…
And a special thanks to all of you who contributed to my whiskey fund at the end of last week: it’s feels really good to be apprecaited for the work I put into this newsletter: if you feel like making a contribution, you can do so at the link here:
The Benzinga Pre-Market Prep show has been moved to 1PM EST on TUESDAY, JULY 6th, 2021 – so catch me there – I’ll post the link to my Twitter account tomorrow as soon as I get it.
Ok, let’s look at the IPOs for this week (pretty short list):
Atour Lifestyle Holdings (ATAT) – July 6, 2021 | 19.7M Shares
This one got postponed from last week, and given the hit-job the Chinese government has done on DIDI, YYM, and BZ over the weekend, ATAT pulled its IPO today.
Moving Image Technologies (MITQ) – July 8, 2021 | 2.3M Shares
MITQ is a reseller of digital cinema projectors, seats, and drink caddies, so initially, this doesn’t sound all that interesting unless you somehow tie it to the madness that’s going on with AMC right now. But what makes this one interesting is the underwriter: Boustead Securities. Several IPOs they’ve led have been monster Stealth IPO plays, and with just 2.3M shares, this one is already catching social media buzz. I’ll be ready to play this one for a quick exit out of the first halt, but won’t really be making a final decision on how I’ll play it until game-time. Watch the indication price: the offering price is just $3, which is unusually low (typically these price at around $4-5), so as long as we don’t see something crazy like $20, this is likely going to offer at least one upward halt, maybe two, for quick profit taking.
LinkDoc Technology (LDOC) – July 9, 2021 10.8M Shares
Some kind of Chinese AI-driven healthcare company, that usually might seem pretty interesting, but given the PRC’s crackdown mentioned earlier, I’d need to see a strong debut from ATAT on Tuesday before having any confidence in LDOC. Unless the PRC makes a quick decision to unblock DIDI before Friday, investors might be wise to avoid Chinese stocks in general while these investigations shake out. It would not surprise me if this one also gets pulled from the shelves before the offering goes live. Normally I’d like this one, but this past week has not been ‘normal’ for Chinese IPOs by any means, and the downside is unreasonably negative until this trend is broken.
Transcode Therapeutics (RNAZ) – July 9, 2021 | 6.25M Shares
We covered this one back in May, and it has been rescheduled several times. A pre-clinical oncology biotech that has upsized its IPO from 2.77M shares to 6.25M shares and is being offered on WeBull for IPO allocations, this is no longer ultra-low float, though still pretty low. Given that it’s a pre-clinical cancer biotech about which I understand very little, I’m not gonna try my luck on this one.
NOTE: I’m not a financial advisor, so this isn’t financial advice, it’s just information – don’t blame others for your mistakes, trade your own trade, and good luck out there.