Thread by @marcgayle

The investment company being spun out from Jamaica Teas - QWI - has finally published their prospectus.

You can read it in full at the link below.

This brief thread isn’t about this particular offer. Many will discuss the offer in detail.

//Thread

jamstockex.com/wp-content/upl…

This thread is about making an investment decision based on your general portfolio strategy.

The first step is you should know clearly what your portfolio strategy is. That will inform how you make investment decisions.

We will discuss this in detail in my Advanced Masterclass on Saturday, Sept 14. You can see more details including the links to register below.

https://twitter.com/marcgayle/status/1170747383224950786?s=21

There are different ways to invest. You can invest for the short-term (a “quick flip” aka speculate), the medium-term or the long-term.

Once you know how your portfolio looks and what you are comfortable with, you can take advantage of opportunities in a responsible manner.

PLEASE NOTE: THIS IS NOT INVESTMENT ADVICE. I am just using this IPO and prospectus as a teaching tool to illustrate a broader point about managing your finances and investment portfolio generally.

Do your own research and talk to a licensed financial advisor.

Back to this IPO, a lot of people have been “investing for the pop” in IPOs. Ie just buying under the assumption that the price is going to rise.

You need to be informed enough to decide whether that’s a risk you want to take.

But there are also other opportunities too.

In this case, let’s take the IPO allocation.

The first thing that jumps out to me is point #3. JAMT & KIW shareholders will get a $0.10 discount ($1.25 vs $1.35 for the general public).

So the natural expectation is that people will try and get their hands on both stocks.

KIW is no longer listed, but JAMT is. So, based on this prospectus and point #3, the cut off date is Sept 16.

You can generally expect that buy requests (aka demand) for JAMT is going to increase significantly before Sept 16, then drop right after.

So, say you didn’t want to invest in the IPO but you knew the state of your portfolio and you had some cash ready to speculate with, you could make sure to get your buy order in to capitalize on what you expect to be a bidding up of the price of JAMT.

In other words, this could potentially be a speculative opportunity based on the IPO that doesn’t involve you buying into the IPO.

Naturally, you want to make sure you plan your exit because as fast as people get in to JAMT they are likely to want to get out on the 16th.

Note that I am not saying that this will definitely happen, and I am not giving investment advice.

I am just using this specific listing and what’s happening in the market now, to point out what some may see as a speculative opportunity.

Note that the reason it is speculative is because it could backfire. You could get in to JAMT and get stuck holding it after.

Or for whatever reason the price could drop and you are stuck in a losing position you didn’t want to be in.

There are significant risks either way.

I am not suggesting that you do this.

But what I am saying is, once you understand how your portfolio is structured...

you have a plan in place, and you understand all of the dots you can spot opportunities and make calculated decisions about how to react.

PLEASE NOTE: DO NOT TAKE THIS AS INVESTMENT ADVICE. This is for illustration purposes only.

Do your own research.

If you want to learn more about this stuff, we will be discussing it in my class on Saturday, Sept 14.

See details up above or in the thread below.

https://twitter.com/marcgayle/status/1170747383224950786?s=21