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Backblaze (BLZE) – 11/11/2021 | 6.25M Shares
Covered this one already, but my opinion on this one has changed a little, and now I’m planning to give this one a shot: mainly due to the rather dedicated fan base this company seems to have amongst its clients and those who use it’s services. This is a cloud based data storage company that sounds a lot like Dropbox for small businesses, but it’s been brought to my attention by members of the IPOW community that they have some unique features that make their services stand out in the space. They have a somewhat loyal customer base with a net retention rate of 114%, but growth is not particularly impressive for a cloud/software company at +24% revenue growth and +14.6% gross profit growth over the 6 months ending June 30, 2021. They do have positive cash flow, but negative operating profit and net income. Low float could kick in if day traders like this one, and the buzz on social media has been louder than I had expected. If they get an appearance on CNBC tomorrow before the debut or even after it’s started trading, that could be a difference maker.
Vaxxinity (VAXX) – 11/11/2021 | 6.7M Shares
This is a clinical stage biotech that develops vaccines for chronic diseases using a proprietary technology licensed from other companies. Their lead Phase 2 candidates focus on Alzheimer’s and Covid19, which are two of the buzziest applications in the market right now, and may be sufficient reason to break my general rule about not playing biotech IPOs.
HeartBeam (BEAT) – 11/11/2021 | 2.75M Shares
This company produces a medical device that detects heart attacks. Their device is not yet approved by the FDA, though they do have 3 patents pending, and have a peer reviewed medical publication expected to come out this month. Notably, they state in their S-1, that they currently do not have enough funding to complete 510(k) FDA clearance – and do not have any path towards revenues until their device clears FDA approval. My take on this is that it may sound a bit like IINN, and the low float alone may make this an interesting Day 1 debut, but whereas IINN claims to have ample funding to get through the FDA approval process, BEAT flat out states that without additional funding, they will fail. So… maybe it’s a fun little day trade setup, but not something that I expect to run beyond maybe a move up $1 or so from a starting point of $4.00 or $5.00… maybe an early pre-market move, but I would be pretty surprised if this flew beyond that (then again, keep an eye on social media: with the rest of the market in a bit of a hangover/pullback, maybe all the focus will be on low-float IPOs tomorrow.
KidPik (PIK) – 11/11/2021 | 1.67M Shares
Ok, well, if you just ignored the underlying companies and went with the lowest of the low float debuts, this one would take the cake, with a minuscule float of just 1.67M shares. We covered this last week, and it got rescheduled for this week, so I’m just gonna re-post what I said about their company…
Their growth numbers aren’t bad, with revenue up 70% over the 26 weeks ending July 2, 2021 and gross profits up 76% over the same period (but it is a bit odd that they’ve calculated growth on a period of 26 weeks and not the standard 6 mos). Baseline financials are negative across cash flow, net income, and operating profits, and the numbers are more indicative of a small business than a public company: as a footnote, the CEO’s son is the VP, COO, CTO, and Secretary. So, I don’t know, maybe a low float play: the underwriter is EF Hutton, and they’ve had a few low floaters that ran up enough to make this potentially interesting, but don’t get yourself stuck in this one. Volume is likely to disappear if it shows up at all, so tread lightly on any play in this relatively unknown ticker. The underwriter is EF Hutton, they’ve done a few recent low float IPOs, some of which went up enough to make it worth playing them. I dunno, hard to get excited about this one, but then again… JUST 1.67 Million Shares ?! (Holdup, just read an update that AHI is coming in with even an even lower float… )
Tivic Health Systems (TIVC) – 11/11/2021 | 2.7M Shares
This company produces medical devices designed to alleviate sinus pain through a vibrating device that delivers an electrical current to relieve sinus pain. They already have FDA 510(k) clearance as of 2019 and are developing other devices, but they don’t make much money. Revenue is up 122% in the 6 months ending June 30, 2021, but that’s in comparison to peak Covid, and the total revenue is just $547,000 — nothing too exciting. They have negative gross profit, which is never a good sign, and negative gross margin. All this together with negative baseline financials, make this a pretty shaky company in terms of financial analysis… but…
It’s a ThinkEquity underwritten IPO, and the float is just 2.7M shares, so who knows.
Advanced Human Imaging (AHI) – 11/12/2021 | 1M Shares
This is an Australian company that develops software that measures the dimensions of a user’s body using a smartphone. Which kind of sounds interesting in light of the applications for clothing sizing, tele-health, as well as the potential for rendering proportionate avatars in a ‘metaverse’ environment. They actually produce revenue, but the growth numbers are a bit outdated (revenue +150% in 6 months ending December 31,2020). They’ve cut their IPO in half from initially intending to raise $24M through ADS, and are now issuing just 1M ‘units’ that consist of a share plus warrants (2 I believe).
Oh yeah, and it’s a Maxim Group play, so given what Maxim just did with SOPA, I imagine that there will be quite a lot of interest in this debut (though I doubt it follows the same script.)
But this is also the lowest float IPO of the week (and I don’t really ever recall having an IPO with just 1M shares before, so I’m pretty interested to see what this one does in this IPO environment, and very likely to give it a shot myself.
Journey Medical Corp (DERM) – 11/12/2021 | 3.2M Shares
This is a commercial stage biotech focusing on dermatological conditions that is being spun off from Fortress Biotech. They have 5 branded products and 3 generics, and are raising funds to pay for marketing and expansion. They DO produce revenue, so that’s a nice change for a biotech IPO.
Interestingly, they got hacked in a cybersecurity attack in September 2021 and their accounts payable department was tricked into sending nearly $10M to fraudulent accounts, which is a pretty big hit for a small growth company, but was absorbed by the parent company in the form of a note that will be converted to common stock upon the consummation of the IPO at the IPO price.
So it sort of seems like the IPO will be funding a cybersecurity attack… weird.
It also seems to indicate that at the expected float will expand by roughly 800k-1M shares upon commencement of the IPO (depending on final pricing of the IPO). Still a very small float, and the company is relatively safe compared to other biotech debuts, but it’s also a Roth Capital underwritten play, so I dunno if it will get a very warm reception.
In summary, there are a ton of
Others that I already mentioned in the weekly newsletter are:
– Mynaric (MYNA) – 11/11/2021 | 4M Shares
– Weave Communications (WEAV) – 11/11/2021 | 5M Shares
– Lulu’s Fashion Lounge Holdings (LVLU) – 11/11/2021 | 5.75M Shares
– Blue Water Vaccines (BWV) – Unscheduled | 2.2M Shares
All low-float, which have been relatively good plays for small patient wins (SOPA went ballistic, but even BJDX and STRN gave win opportunities this week).