Tag Archives: IPO

by | June 17, 2015 · 5:58 pm

Fitbit IPO thursday

Fitbit are ready to go public and the pioneer in wearable fitness-tracking devices will raise more than $600 million as soon as later on today, and this will be the fifth-largest U.S IPO in 2015. The company will go public tomorrow, on thursday.

Innovalon Holdings raised $685. GoDaddy raised $520, while Etsy raised $307. As you can see, Fitbit would be one of the largest tech debuts so far in 2015.

 

 

Fitbit6

 

Some investors are sceptical about the company and its shares. Are they able to compete against Apple Watch, they said? According to Nasdaq their share price is set to $17 – $19 each share, and shares offered/outstanding is 34,500,000.

The company has a strong revenue growth and annual profit, and there is a strong buzz among investors before they go public, and this is building up a strong demand for Fitbit`s shares. The firm will be valued at $3,7 billion with its estimated price range of $17 – $19 a share.

Fitbit doubled the number of devices sold to 10,9 million from 4,5 million between 2013 and 2014. Revenue tripled in the same period. Net income for 2014 came in at $132, on $745 million in revenue. It is expected to see revenue at $1,4 billion in 2015 and $1,7 billion in 2016.

Fitbit is more like GoPro Inc. GoPro went public last year and the stock more than tripled in October last year. Fitbit has a lower valuation and trade at 21,6 times the past years reported earnings through March 31, compared with 82 times for GoPro, FactSet data show.

Some Fitbit customers has experienced an allergic reaction on their wrists, but others are obviously happy with the new product like the U.S President Barack Obama which is a user of this «hot new trend» right now.

The wearable devices can track daily steps calories burned and floors climbed, as well as sleep duration and quality. Fitbit have many different wearable devices and some of them can track your heart rate and collect information about distance, speed and exercise routes.

I have had my wearable device in 20 years, but now it has become mainstream. A hot trend. I will be very surprised if this products over goes the mobile trend. A mobile phone is a «must have», but a wearable device like Fitbit is a «funny-thing-to-have».

Fitbit will start trading Thursday morning on NYSE under the symbol «FIT».

 

Click the link below and check out the Fan Fund

https://www.eventbrite.com/e/fan-fund-tickets-15580655159

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. UA-63539824-1.

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by | November 7, 2014 · 4:35 pm

Ferrari IPO

Ferrari S.p.a is an Italian luxury sports car founded by Enzo Ferrari in 1929. Ferrari road cars are generally seen as a symbol of speed, luxury and wealth. Fiat acquired 50% of the company in 1969, and expanded its stake to 85% in 2008. Earlier this year Fiat announced its intention to sell its share in Ferrari. Piero Ferrari have a 10% stake in the company, while Fiat Chrysler Automotives have 90%.

Ferrari-Aurea-Spider-DGF-FA-1280x960

(Picture: Ferrari Aurea spider)

Ferrari is a strong brand, and the famous symbol of the Ferrari racing team is the Cavallino Rampante (prancing horse) black prancing stallion on a yellow shield, usually with the letters S F (Scuderia Ferrari), with three stripes of green, white and red (the Italian national colors at the top).

Ferrari sold 7,318 units in 2012. The sale dropped down to 6,922 last year, and the revenue was €2,3 billion in 2013. Up 5% from 2012. The company is struggling and in an U.S IPO they hope to raise at least $1 billion.

They struggle to compete with other automakers in Europe and the U.S, and the competition is tough. Tesla have great success with their new electric car with good comfort, technology and over 700 horsepower. Ferrari is also seen as a luxury car with a great vehicle (V8 and V12), but they are struggling. Why?

When you ask people about Ferrari, they think racing cars and especially Formula One, and that is probably an image problem. Formel One and Racing cars is not something for you and me. It`s something for Schumacher. Some people love Formel One and racing cars, but the market is unfortunately not big enough?

Ferrari F430 Spider runs on ethanol, and that hybrid will be in production next year. LaFerrari was put into production this summer. It`s called HY-KERS Concept, and the hybrid system adds more than 100 horsepower on top of the 599 Fiorano`s 612 HP.

The company has produced a number of concept cars such as Ferrari P4/5 and Ferrari SP12 EC, which have been commissioned by wealthy owners. Other quite radical cars is Ferrari Mythos and Ferrari Modulo, but the most recent concept car was produced in 2010, which is Ferrari Millechili.

The special projects program is a collaboration by Ferrari with Italian automobile coachbuilders such as Fioravanti, Pininfarina, and Zagato to build custom cars using selected Ferrari modes as a structural base. The first car under this program is the SP1, commissioned by a Japanese business executive. The second is the P540 Supersfast Aperta, commissioned by an American enthusiast.

Ferrari`s former CEO and Chairman Luca de Montezemolo, resigned from the company after 23 years, and is to be succeeded by Sergio Marchionne, CEO and Chairman of Fiat Chrysler Automobiles, Ferrari`s parent company. Marchionne merged Fiat and Chrysler into the world`s seventh-largest carmaker to better compete with leaders such as General Motors, Volkswagen AG and Toyota Motor Corp.

On 29 October 2014, the FCA group, resulting from the merger between manufacturers Fiat and Chrysler, announced the split of its luxury brand, Ferrari. The aim is to turn Ferrari into an independent brand which 10% of stake will be sold in an IPO next year.

Fiat Chrysler`s brands include Jeep, Fiat, Maserati, Alfa Romeo, Chrysler and Dodge, which all strong brands. They sold about four million cars and trucks in 150 countries last year. Fiat Chrysler declared bankruptcy right after the financial crises in 2009.

Marchionne want to raise cash to cover its expenses and said that the company will spend money on R&D and capital expenditures. The stock rose after the IPO news and Marchionne has stated that he want to increase production to 10,000 cars a year. That`s music in investors ears.

Fiat is putting its jewel on the market.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | October 2, 2014 · 2:08 pm

Zalando IPO

Zalando listed about 10% of its shares in the public offering on the Frankfurt Stock Exchange yesterday. The company`s €21,50 issue price was set at the upper end of its bookbuilding range, but their debut was described as disappointing by analysts yesterday. It seems like they all are preparing for the coming battle in this e-commerce business. Zalando is a big e-commerce retailer in Europe.

Zalando

Zalando is founded in 2008 by David Schneider and CEO Robert Gentz. Zalando is a multinational e-commerce company that specialises in selling shoes, clothing and other fashion and lifestyle products online. In addition they are a tech powerhouse, leading Berlin`s startup scene to the Frankfurt floor.

It is a German company and has since their start expanded to offer its retail services in a total of fourteen European countries. The company`s headquarter are in Berlin. They are inspired by US online retailer Zappos.com.

They started initially specialised in the sale of footwear but has since grown to encompass other areas of fashion, lifestyle and sports. Schulze said that Zalando is a European online retailer and not a pure German one.

Zalando`s offering is one of Germany`s most significant e-commerce IPO to date. Revenue from online shopping in the country is expected to grow 22% this year and 16% next year ($73,5 billion). More than half of Zalando`s revenue comes from Germany, Switzerland and Austria. They had 2 billion euros in sales for the 12 months ended in June.

Zalando shares rose 14% in their IPO debut in Germany. Nothing compared to Alibaba`s smashing success. As you know, Alibaba now are flush with cash and I think they will spend most of it in the overseas markets.

This could leasd to M&A activity. Wayfair.com is still unprofitable, but they will try to raise $350 million and that is about 2x estimated 2014 revenue. That`s a $2,35 billion valuation. Zalando is a Zappos.com clone in Europe, but both Wayfair.com and Zalando are growing fast, and much faster than Overstock in the U.S. Zalando`s sale rose 30% in the first six months this year. 3X revenue for Zalando will be about $7 billion valuation. Far away from Alibaba.

A lot of things will happen in this market in the future. M&A is the key to grow fast and be big and I will be impressed if Alibaba can deliver the goods as fast as they do in China. The same day, within a few hours. Impressive! This is the reason why eBay was kicked out of the market in China, according to Jack Ma. It will interesting to follow this business in the future. This is only the beginning of a success story.

Web investor Rocket Internet is also poised to list today.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | September 19, 2014 · 2:02 pm

All eyes on Alibaba Group today

If you buy Alibaba shares today, you will buy a piece of North American Island country, and not a piece of the Chinese online retail giant. You will simply buy and own a stake in a variable interest entity registered in the Cayman Island, because Chinese law forbids foreign ownership of strategic assets in China. So, if you buy Alibaba shares today, you would have no influence on management.

alibaba logo

Shares worth about $8 billion is not locked, which means you can sell them right away today. The rest of the IPO`s have a lockup period, which means you have to wait several months before you can sell them.

In addition; if you buy shares in Alibaba today, won`t be able to hedge. Options will listed on September 29. Alibaba Group will be assigned a «China domicile», and therefore shares can`t be included in the S&P 500 Index, which requires a U.S domicile.

As you probably know, Facebook, Twitter and Google are all banned in China, and it was not easy for eBay either. Jack Ma said eBay couldn`t deliver as fast as they could. But what about Alibaba in the west?

Is it gonna be easy for them to build a great express logistic system to deliver fast in the west, where domestic companies are favored over international companies like Alibaba? That`s gonna be interesting in the future, because Alibaba is trying to be a global leader.

In my opinion; Amazon is very expensive, and Alibaba is very cheap. All eyes on Alibaba (BABA) shares today!

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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by | September 16, 2014 · 1:56 pm

Will Alibaba raise its IPO price?

The demand for Alibaba IPO shares is going wild! So wild that they have decided to raise its IPO price range from $66 to $68. Alibaba is a step closer to its IPO as much as $21,8 billion. Yahoo! Inc and other backers plan to offer as much as 320,1 million shares.

alibaba logo

Alibaba`s Jack Ma have been on a roadshow, and told the investors that they will not seek too high a valuation, and they are offering the shares at a price-to-earnings multiple that`s below what other public traded Chinese Internet peers fetch.

Alibaba`s market value could be as high as $167,6 billion. China`s biggest search engine trades about 34 times estimates of this year`s earning. Tencent Holdings Ltd trades at 37 times, while Amazon trades to 133 times forecast 2014 earnings.

The average for similar Chinese Internet e-commerce companies trade at 43 times their earnings.

Alibaba will try to be a global company and plans to expand its business in U.S and Europe in addition to Asia. Ma said they will try to avoid a repeat of Alibaba.com`s failure which plummeted below its IPO price right after listing and ended up delisting the company in 2012.

Jack Ma listed the company at the peak of the Hang Seng in 2007 and delisted it at the bottom during the financial crises in 2008. The S&P traded at about 30 times earnings in 2000, but now it is trading at 18. The Alibaba IPO in 2007 was 257 times oversubscribed and we won`t see that kind again.

Jack Ma and Alibaba has been on the road for two weeks trying to meet investors and speak with them. They said they plan to set a final price for the shares on Sept 18. Trading start the day after, on friday 19.

Nasdaq rose to its highest since March 2000 this month. Is this the right timing for Alibaba?

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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