An IPO is different than

a Direct Listing which is different than

a SPAC.

They all have strengths and weaknesses.

1. One is NOT always better than the other for retail investors and the company.

2. Bankers ALWAYS make money regardless of for of public listing
In an IPO - bankers make the most money but the "allocated large investors - such as Mutual funds, Hedge funds" get early dibs; BUT they have to hold for 6-12 months. There is also a lockup expiration period preventing insiders from selling at IPO
In a direct listing - bankers makes less money because the company does not need the money. The company is merely providing early investors (and employees) an exit - Who want the best price for their stock.

So retail investors pay up anyway.
In a SPAC, the promoter decides the valuation with the company's founders. The SPAC promoter and PIPE are already in the "money" when the stock goes over base price of $10 (NAV)
So when people tell you "Wow, it is great that it was SPACed or I like direct listing over IPO" - they just dont understand how the market works for public offerings.

Bankers, big money funds ALWAYS make money. Retail always pays a premium.
Corrections:
1st tweet should read:

2. Bankers ALWAYS make money regardless of which method is used for a public listing

instead of

"2. Bankers ALWAYS make money regardless of for of public listing"

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More from @mukund

24 Feb
Quantum Computing, short thread - for @BluSuitDillon

Quantum computing harnesses quantum mechanical phenomena to greatly enhance the way in which information is stored and processed, lending itself to performing more efficient algorithms than possible in
classical computing
In a classical computer, the basic unit of information is a bit, which can have only one of two values—0 or 1.
In a quantum computer, the basic unit of information is
known as a quantum bit or “qubit.” Through quantum mechanical phenomena, qubits can perform many computations simultaneously, which allows the quantum computer to solve a difficult subset of problems much faster
Read 11 tweets
24 Feb
I got many messages today. The market was tough. I understand people are worried, confused and not sure if they should "sell everything" and go to cash.

Is this a BIG crash? Is this a correction? Is this a return to value?

During times like these, I dont panic. I look for data
There are 5 pieces of data that we should look for:
1. Economic
2. Fiscal
3. Market
4. Price action
5. Indicators
I will try and parse through that and give you some information -

<I am not Cathie Wood, so take it for what it is worth>
1. Economic. No major data changes, here, but unemployment is still worrying as is balance of trade and current account - see below.

I would call this YELLOW - no change from Friday last week before this selloff started.

tradingeconomics.com/united-states/…
Read 9 tweets
23 Feb
My process: After screening / scanning I go to my next step - Validate.
This is NOT financial forensic analysis.

This step for me is to find red / yellow / green flag. Please use and share if you find it useful
In this step the objective is to understand the business and get a feel for what will make it grow. I also do a technical evaluation (if appropriate) and market landscape map.

For this thread I am going to only focus on metrics
My first manager at Cisco was Sue Bostrom, (bless her soul). She taught me about input metrics, output metrics and I learned about CX (Customer Experience) metrics at $AMZN

Most financial metrics are output metrics - they tell you what happened POST them happening
Read 9 tweets
22 Feb
Screens and scans that I use.
Please use and share if you find useful.

I am sharing 5 of 25+ screens/scans. The ones that have back tested & work consistently.

1. Sales and earnings growth
2. Earnings surprise
3. Mid cap, new IPO
4. Volume breakout
5. Small cap hot sector
1. Sales and earnings growth. I use finviz.com
Go to screener,
Select Fundamental Tab
Choose Over 30% for Sales and EPS growth Quarter over Quarter
2. Earnings surprise
I use NASDAQ earnings surprise page for this. Super useful during earnings season

Strong earnings surprise means a week+ of gains usually in the stock

nasdaq.com/market-activit…
Read 7 tweets
21 Feb
Alternative Scanning - My process. Use and share if useful.

I already covered Screening vs Scanning.
"Alternative Scanning" is when you use external data. There are 5 scans I browse weekly

1. Twitter
2. Reddit
3. Fidelity
4. StockTwits
5. Whale Wisdom
1. Twitter: I have created 5 private twitter lists. Please dont ask me to share them. The reason is people get upset when they are or are not on any list. Not worth it. Create your own list.
Make a list of long term investors, traders, chart experts, etc. I scan this daily.
2. Reddit. This is confusing since it is harder. My hack is that I have recently started using Swaggy Stocks. I dont recommend it yet, but it is worth a try.
swaggystocks.com/dashboard/wall…
Read 7 tweets
20 Feb
Screeners and Scanners: My process explained. There is a difference between Screening (Finviz) and Scanning (Koyfin) for stocks. I will share what I do and if you find it useful, please use it, and share.
Screener: I "screen" for stocks on finviz using some parameters I set. In this example, I am looking for HIGH growth, stocks that have recently (<1 year) IPOed.

You can further refine this list by adding volume for example.
I have used 30% QoQ EPS and Sales growth.
Scanner. Screen gave me 23 stocks. I cut and paste the tickers into a watchlist in Koyfin

Go to app.koyfin.com/mov and select the watchlist. View shows you relative volume leaders( to the right) and 1 day return (top)

You can select other time frames as well (1 wk, 1mo)
Read 6 tweets

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