12/10/20

DoorDash Dashing To A Crash?

This is the week that was as it relates to Initial Public Offerings. Well, last week also.

Amongst the IPO royalty is a company called “DoorDash” (DASH) that hit the IPO switch on Wednesday and was up almost 90% on its first day of public trading.

DD had already re-priced its IPO price based on demand twice during the lead up to their birth as a public company, so the deal was pretty rich.

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08/7/20

The Pricing of IPOs

Comes now the triumphant case of Austin, Texas based BigCommerce who IPOed at $24/share on Tuesday. It was cause for local pride and a bit of celebration.

But, was it really?

Absorb these facts:

 1. Company comes public at $24/share and nets $216,000,000.

Well played. Bravo! Years of hard work come together. The American Dream is alive in Austin By God Texas.

 2. Stock price closed that day at $72.27/share, a nifty 201% above the IPO price in less than one full day of trading. [Helen, I think we go with the big Lexus.]

 3. On Wednesday, stock opens at $68, rewarding the folks who got a slice of the IPO and the investment bankers who bought the 15% over-allotment, the Green Shoe, for which they paid $24/share.

 4. Stock closed at $91.80/share on that same Thursday. At this price, the company’s market cap is in the $7B range. A lot of value was created for the founders and the venture capitalists who threw in over $200MM to build this baby.

I love the smell of capitalism in the morning.

For those doing the math, confirm that the $24/share to $91.80/share run is a 283% gain. Not a bad performance for two days.

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02/10/20

Casper — CSPR — The Unfriendly Mattress Company

So, Casper — CSPR NYSE — got public at a value that is a meaningful  discount to the last venture money valuation. Still, they got public.

The IPO went through some birth canal stress, exiting as a skinnier version of its most recent $1.2B private value. It is currently showing a public market cap of $346MM. That is one Hell of a haircut.

“Could you nip it a little close on the sides, please? But, don’t amputate the ears?”

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01/13/20

The Casper IPO IQ Test

After a blood bath with the failed WeWork, the IPO market is coming back for another IQ test — how stupid are you?

This is not a drill.

Comes hither our sleepy friends Casper, the mattress folks.

Casper isn’t spooked by IPO woes

Could investors ghost the Casper IPO?

Spooky.

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10/15/19

Smile Direct Club — No Smiling Allowed

Comes now the curious story of Smile Direct Club — the worst Initial Public Offering of 2019.

IPO prices at $23 and rests comfortably this morning at a bit above $9. Ouch. We are talking a huge loss of value, down 60%.

Here are the Smile Direct Club founders, Jordan Katzman and Alex Fenkel. Does it strike you as odd that neither of these co-founders are smiling? Seems a little creepy as if they are doing it on purpose.

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09/13/19

We IPO — An Obscenity Or Just Offensive?

If you have been off the ‘net, you may not have heard, but We (We Work) is trying to float a public issuance of its stock. Your Big Red Car wrote about it here.

We IPO — You Work, I Work, WeWork

Back in the middle of August when that was written, several pithy criticisms of the deal were made. Since then, We (We Work) has gotten some sense beaten into its dopey head and backtracked on the most egregious offenses against common sense and humanity.

Is it enough? is it enough? Is it enough? No. No, a thousand times NO!

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08/16/19

We IPO — You Work, I Work, WeWork

There are some things in life that you have to see to believe. One is Niagara Falls. Another is the We IPO S-1, the US Securities and Exchange Commission filing that reveals the inner workings of a company before it goes public. An S-1 is like seeing a company’s scat while on the hunt.

Image result for logo we work

This is that little falls between the USA and Canada.

Niagara Falls, New York

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