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3 IPOs to Buy That Aren’t Ridiculously Overpriced

Mar 16, 2017, 10:33 am EDT

For the most part, I consider the acronym “IPO” to actually stand for “It’s Probably Overpriced.” There’s just so much hype around an initial public offering that the market frequently prices shares unrealistically, or they reach that level very quickly. Source: Flickr

There are many reasons for why this happens, even with companies that don’t have actual earnings or for those that aren’t even that sexy. The idea an IPO puts in most investors’ minds is that it represents some amazing thing and that one can get in on the ground floor.

Because the number of shares offered in the float isn’t terribly large, if there’s even a whisper of hype, it can create momentum buying. Sellers dump shares as they rise to new buyers, who dump shares to the next group of buyers, and so on. Only when the business has been reporting for several quarters do investors start looking at valuation. Read 

The 7 Best IPOs to Buy for the Rest of 2017

Mar 14, 2017, 2:57 pm EDT
The 7 Best IPOs to Buy for the Rest of 2017

The Snap Inc (NYSE:SNAP) initial public offering has been volatile, and it’s far from one of the best IPOs the market has seen, but shares of Snapchat’s parent company are still up nearly 30% from the offering price. Source: Shutterstock

But winning IPOs aren’t made in the first few days. Take Facebook Inc (NASDAQ:FB), which barely budged on its first day of trading in 2012 — a rarity for a hot IPO — and lost 34% in its first year on the public market. But patient investors (especially those who took my advice to wait until the IPO hubbub had cleared) are now sitting on more than a tripler, as Mark Zuckerberg showed what he could do with his ideas and some fresh capital.

Snap has done all investors — you, me and anyone else willing to go after IPOs — a favor, though. Read 

Snap Inc Snags Apple News’ Media Head (SNAP)

Mar 14, 2017, 10:37 am EDT

Snap Inc (NYSE:SNAP) is heavily dependent on ad revenue. A big chunk of that comes from the Discover section of Snapchat. So it’s not a surprise that the company is pushing to boost the numbers from Discover by hiring an industry heavyweight to drum up new media partnerships. Source: Snap

What might be surprising is that Snap managed to lure a senior manager from Apple Inc. (NASDAQ:AAPL) to do the job.

Apple News lost its senior publisher relations manager to Snap in February, where she is now the global publishing manager. Read 

Snap Inc (SNAP) Stock Is the Perfect Buy at This Price

Mar 10, 2017, 8:17 am EDT

Wall Street has been waiting years for Snap Inc (NYSE:SNAP) to hit the market and give investors a taste of its innovative messaging platform, Snapchat. Now that SNAP stock is finally on board, there’s still money to be made here — if we can score the right entry. And at this stage in the company’s lifecycle, that’s more a matter of patience than speed.

Let’s take a look at the fundamentals first. Buying SNAP Stock Is All About Price

The Snapchat IPO priced at multiples that most well-established stocks on the market will never even contemplate. To engineer the $17 starting point in SNAP stock, the underwriters had to assume that investors would find enough motivation to buy in at 50 times trailing revenue — forget about profit here before 2020 at the earliest! — which made the stock more expensive than 99% of its large-cap counterparts from the very first trade. Read 

Stop Counting Snap Inc (SNAP) Stock Out Already

Mar 8, 2017, 11:07 am EDT
Stop Counting Snap Inc (SNAP) Stock Out Already

When it comes to IPOs, the gains can be ephemeral like, well, a Snapchat photo. Yes, after last week’s massive gains, Snap Inc (NYSE:SNAP) stock is coming under quite a bit of pressure. Granted, for those who were lucky to get SNAP at the offering price, there is not much to worry about. The gains are still quite lucrative. But, of course, only large institutions and mega wealthy investors got this sweetheart deal. Source: Shutterstock

Predicting such things as the beginning of a downward spiral in Snapchat stock, however, is more akin to gambling than in-depth analysis. Yet, there are still some things to keep in mind when it comes to playing SNAP.

First of all, there has been an avalanche of negative analyst reports. In fact, it’s kind of remarkable that Snapchat stock hasn’t fallen even more. So far, there are no “buy” recommendations. The consensus price target on SNAP shares is only $15.50, which compares to the current market value of $21 (the lowest price target is Pivotal Research Group’s lowly $10). This implies that there could be 26% or more in downside risk. Read 

Snap Inc. (SNAP): Snapchat IPO ALMOST Beats the Odds

Mar 3, 2017, 7:46 am EDT

They say you can place a bet in Las Vegas on almost any proposition. And while most of the action is on sports contests, the Snapchat IPO from Snap Inc. (NYSE:SNAP), I thought, would surely be attractive to visitors in the town’s sports books. Source: Shutterstock

And so it was that I went online in search of Las Vegas odds on the Snapchat IPO. Looking for any kind of prop that investors could hang their hats on when it came to handicapping SNAP stock coming out of the gate, I wasn’t able to find much.

However, a website called Las Vegas Sports Betting in November had five props available to bet on. These are taken directly from its site: Read 

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