IPO hard decisions

This post is inspired by Beyond Meat. Since the early May IPO, BYND shares have surged 6 fold; is it common for a company to shoot up after IPO? take a look at AJ Bell as another example.

Imagine selling your stake in BYND on May 2, you would be gutted.

Does anyone have any experience of being part of an IPO, any advice?

At some point Freetrade will (hopefully) IPO …

1 Like

it is not that common but it happens. IMO the company looks good but this price it is just too hyped up. The price might hold or can crash down to $50 so it is more speculation than investing.

1 Like

Same as with any shares you buy in a company though I guess.

I imagine few thought BYND would go as high as it did but I thought it would definitely increase

I think I would hold off on BYND (not that I have a choice, as it isnt on freetrade) till it has settled down a little more

1 Like

My view is to never buy into an IPO and let the market decide first.

Yes you might miss out on a sixfold increase in the short term, but how many bets will you lose before that one? Will you put in a meaningful amount of cash to make that kind of increase worthwhile?

For my tastes it’s far too high risk. You are getting into day/swing trader mentality rather than growing your assets over time.

It can be very tempting when you see success like this but it’s a dangerous game in my mind.

3 Likes

That was my downfall with Sound Energy … got greedy, got stupid.

1 Like

I had thoughts of shorting BYND when it tripled since the IPO, but now, as doubled since then, it makes me believe the saying “markets can stay irrational longer than you can stay solvent” so I abandoned that idea :sweat_smile:

Also, 29th of October will be a big date when lock up period ends (title: Veggie burger maker Beyond Meat tumbles 25% after JPMorgan cut) with many staff and investors potentially cashing out.

3 Likes

Out of interest, do you short via CFDs? You cant trade options in the UK can you?

If only I’d sold when it was £1… :slightly_frowning_face:

1 Like

I bought beyond meat patties at Tesco for £5.50 each pack. Put in air fryer, about a 1/4 cup of oil came out. How is that stuff sold as healthy? :smile:

1 Like

The time will come for you when your early investment in a company breaks through.

Beyond Meat is someone else’s dream investment unfolding.

Unless you are going all in and big on a once in a lifetime move, then it is not advisable to waste time & money on long term gambling mentality.

Like the comment above says, the lock up period could prove to be a great time to buy, the company does seem really good.

It isnt marketed as healthy - they say it is meat free

Which people assume means healthy

Subtle difference but definitely helps beyond meat

2 Likes

Does anyone know if there be a lock in period for Freetrade shareholders?

9% of Beyond Meat is shorted as of close yesterday - including $100 of my money :joy:

Current estimates show a profit in FY 2021, with a whopping 0.17 EPS - based on todays price you’re buying Beyond Meat on a 2021 PE of 829 :slightly_smiling_face:

5 Likes

I imagine those details would only become about when Freetrade decided to IPO

Yes, because they’re usually priced at a discount to do so.

However, Deologic show that 1st day stock market debut pops aren’t a reliable indicator of future performance:

Article:

4 Likes

It’s healthy if you’re a cow :smile:

3 Likes

Indeed, I have not, unfortunately, seen a company providing put options, that is sad. I meant CFD, which is not quite shorting, but close to.

I doubt their core market is healthy people, rather those who are against animal cruelty. I have heard (from few Americans) that BYND patties taste like rubber, but I have not tried them myself :sweat_smile:

It is likely, although I doubt anyone would be able to suggest at this stage

So how exactly do you short BYM?

I was introduced to stocks through IPOs, few friends pooled our first salary together and sell after initial pop, good times it was before 2008.

I do buy IPO now but only those which has lot of hype, got into BYND but Trump tweet spooked me and exited too early.

I would just look for short term and look at it again after few weeks.In and out of CHWY today, just lucky one I think.

Doesn’t narrow it down, that could be anything he’s ever tweeted