The market is in an IPO frenzy right now where bankers big and small are trying to sell investors a company that latches onto a current trend.
It is true that the IPOs so far this year have mostly been a success, but the longer the IPO frenzy goes, the more tenuous the value proposition will become of the latest offerings. In any case, it is almost impossible to get a hold of a seriously hot IPO.
One of these is Freelancer, the owner and operator of a website designed to allow bidding for professional services. Its shares exploded on listing, but only 30 million shares were offered to the public of the 436 million that are on issue. This is less than 7 per cent!
Our average return of our top tips is 156 per cent does not consist of any IPO wins. This is because value investing is about looking for trends well before they become apparent.
Tomorrow we have an interview with one of Australia’s most experienced investors Cynthia Jenkins of Invesco. It is worth listening to what she has to say in relation to value in today’s market.
We also have a small cap that is poised to transition its operations in the next few months, which should see some big value released for shareholders.