IPO Analysis from Seeking Alpha


 

Unlike many growth stock IPOs, Blue Apron Holdings (Pending:APRN) has a clear pathway to profitability as revealed in its June 1st S-1 filing.

Blue Apron's S-1 filing is interesting because unlike many companies in its position, Blue Apron has a clear pathway to profitability through rapidly improving margins and top-line growth.

Amazon Apron business growth IPO margin market position sales stock

 

We recommend investors consider purchasing shares ahead of the 6.19 date to benefit from this expected stock increase.

The 25-day quiet period on Appian Corporation (NASDAQ:APPN) will end on June 19, allowing the firm's IPO underwriters to publish detailed positive reports and recommendations on Appian for the first time since the IPO.

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Given its heavy debt load, rising interest rates and intense competition in its most valuable market, my opinion is to AVOID the IPO.

Given Altice USA’s debt load, a rising interest rate environment, intense competition in its most valuable markets and the pricey valuation, my opinion for the IPO is to AVOID it.

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To go public anytime soon, DocuSign will have to make drastic changes to its structure, culture, and leadership.

The eSign concept is widely used across many industries that traditionally required physical signatures from different stakeholders; these include the real estate, insurance, finance, pharmaceutical, and legal industries as well as government.

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We don't know proposed IPO terms yet, but Tintri's decelerating revenue growth rates and high cash burn are cause for concern.

We don’t know the proposed terms of the IPO, but the company is unremarkable compared to most other enterprise IT firms that have gone public in recent years.

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We recommend investors consider purchasing shares before the 6.19 expiration date to benefit from an expected boost in stock price.

The quiet period for WideOpenWest's IPO is set to expire on June 19, 2017, enabling underwriters to release reports and make recommendations on June 20, 2017.

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There are three deals raising a total of $194 million on the calendar for the week ahead.

We expect the number of pricings will come down in June from May's 17 deals, as the active pipeline has been steadily shrinking in 2017, although we note that seven companies have filed for IPOs this month already.

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Two micro-cap companies priced US IPOs this past week, raising a combined $86 million. It grew sales by 50% in 1Q17, but is still early stage, with just $19 million in trailing 12-month sales and high capex requirements.

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Even as I acknowledge that recent ¨softness¨ might be a volatile one-off, I see no compelling risk-reward situation at these levels around $20.

While financial considerations are not a big risk given the big cash position and low cash burn (on the back of stock-based compensation), Cloudera trades at reasonably fat sales multiples even if it has a bright future.

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High visibility biotech IPO will bring additional attention to other companies in TURN portfolio that are close to IPO.

Mersana IPO will bring attention to TURN as well as increase NAV.

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Potfolio company Mersana files S-1 registration statement and is hoping to get IPO done before July 4th.

Company trading at about 40% discount to recently reported $2.43 NAV per share.

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I think that this speculative play might be a great investment, as long as you tolerate and understand the risks. This creates a decent improvement in public security at a relatively low cost, which makes that I think that better days are ahead for this company.

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We recommend investors consider selling or shorting shares ahead of the first July 31, 2017 expiration event to take advantage of likely declines. At the time, we recommend investors avoid the deal given the slowdown in growth, huge net losses, and high competition from Facebook (NASDAQ:FB).

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InMobi was rumored to the acquisition target of Google for $1 billion in 2015 and Microsoft for $2 billion in 2016.

InMobi reported recently that it turned operationally profitable in 2016 driven by the growth in its China operations, video ad platform, and remarketing platform.

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In this race to the bottom, we prefer midstream MLPs that offer leverage to the best volumetric growth stories.

But in this race to the bottom, we continue to prefer midstream MLPs that trade at reasonable valuations, offer solid distribution yields and provide leverage to compelling volumetric growth stories.

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Snap inc. (NYSE:SNAP), the company behind Snapchat, has been a brutal reminder about the silliness of some tech stocks. The trend has carried on to Snap inc.

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We don't know the valuation terms yet, but I believe it would fare better as a division of a larger e-commerce/grocery group that can provide it cost effective distribution and scale.

We don’t know the proposed share pricing or valuation, but I still think the company would do better as part of a larger retailing entity.

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With ShotSpotter (Pending:SSTI) filing the S-1 statement in anticipation of its IPO, I have decided to value the company in order to see whether the offered price range of $10-$12 is fair.

As a result, there is a need to detect and notify the law enforcement authorities of any gun violence as soon as it occurs, so as to mitigate the risk and enhance the security - and ShotSpotter is an avid example of just that.

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Meal delivery service businesses like Blue Apron have grown in popularity, but they have struggled to reach profitability and many have closed.

Blue Apron was founded in 2012, and its signal booster based meal delivery service has ballooned over the past few years.

Apron business delivery home increased investors kit meal meal delivery Revenue

 

My opinion on the IPO is NEUTRAL.

My opinion on the IPO is NEUTRAL.

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