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Low Float Sneaker IPO on watch for tomorrow… maybe…

August 26th, 2021

Ok, so first, let me apologize for not sending out an alert on RNXT yesterday – the IPO was today, and it wasn’t worth playing in my opinion. While it was a low-float play with just 1.8M shares, it’s a biotech and the only opportunity turned out to be waiting for the open and subsequent drop, and be patient for an opportunity to buy at an extreme dip, then wait and hope for a rebound trade. Wouldn’t want to be stuck in it, and didn’t play it myself. Maximum play would have been to get in at $6.66 and out at $7.97, and timing those would have been pretty challenging and the conviction would have been pretty low. Better leave it be.

Tomorrow there’s another low-float IPO that just came up out of nowhere… it’s for a company in the genomic sequencing field, which is a pretty hot industry full of large competitors. They make DNA and RNA sequencing machines that have been used at Harvard and other research institutions largely used for cancer research.

I’m talking about SeqLL … and the ticker is slated as SQL.

The company originally attempted to IPO in April 2021, with the goal of boosting marketing – but I couldn’t find much else on why they withdrew. In fact, there’s not much information about the company available on the Internet, and even less about their IPO.

In their initial S-1 filing, they claimed revenues of $779k in 2018 down to $257k in the first half of 2019.

Also notable is that this IPO is showing as still available for order on ClickIPO, and is not appearing on any of the primary IPO calendars (it was brought to my attention from one of the members of the IPOWarrior Reddit thread.

I’m a little skeptical that this IPO will actually debut tomorrow, and without any public promotion of their debut, wouldn’t really expect it to fly off the debut. While gene-editing in general has been pretty hot, companies like DNAY have not done well from their IPOs, though I guess that’s more like sythetic biotech.

The only thing particularly interesting about this play is that the float is listed at just 2.3M shares, and the underwriter is Maxim Group, LLC – whose IPOs have not necessarily done incredibly well off the debut, but some (including RGC last week), have made some suspiciously aggressive moves in the weeks or even months following their debuts.

I doubt I’ll be playing this one off the debut – but will keep an eye on it and wait to see if any trading groups start bringing volume into this one on any sort of bottom.

Note: I am not a financial advisor and this is not trading or financial advice. I may take a position in the securities mentioned in this article within the next 72 hours. This is all just for informational purposes – trading in the stock market is risky. Good luck.

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