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Canada Goose: 10 Things to Know About the Red-Hot Canadian IPO

Mar 16, 2017, 2:41 pm EDT

Canada Goose kicked off its initial public offering with a bang.

Here are 10 things you should know about the IPO:

    The seller of crafty and expensive jackets went public on Thursday. It was an incredible beginning for Canada Goose as shares roared 40% from its initial price. The stock traded in both the New York Stock Exchange and Canada. Its price offering opened at C$17, or $12.78 in the NYSE. It opened at $18 on the NYSE before cooling off. The company is valued at roughly $2 billion. The jackets offered by the company are quite pricey, coming in at $1,000 for adults and $450 for kids. The first nine months of the current fiscal year have been great for Canada Goose as sales have increased more than 40% compared to the first nine months of the previous year. It is also a profitable company as earnings were 26% better compared to the previous year’s financial results. Despite the fact that we are nearing the start of the spring, the company got off to a hot start in sales as it went public due to the fact that blistering, cold temperatures hit across the U.S., prompting many to buy one of its jackets to keep warm. Animal rights activist group PETA will invest in the company in order to have a voice regarding Canada Goose’s use of goose and coyote fur to make clothing.

Why Snap Inc (SNAP) Stock Could Soon Rally

Mar 16, 2017, 12:43 pm EDT
Why Snap Inc (SNAP) Stock Could Soon Rally

Even though it’s only been two weeks since the public offering of Snap Inc (NYSE:SNAP), there has already been plenty of gut-wrenching volatility. After a 44% pop on its first day of trading, Snap Inc shares quickly trailed off. Note that Snap stock is about 29% off its high. Source: Shutterstock

Yet this should not be surprising. Let’s face it, whenever you make a bet on a new-fangled technology, you should expect a roller coaster ride.

A spot-on case study of this is Facebook Inc (NASDAQ:FB). After its debut in May 2012, the stock price would go on to tumble by about 50% in three months. But, of course, selling into this would have turned out to be a big mistake. Read 

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 

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