What other tech stock to consider?

[Dharma]

I would like to get in on the SNOW (Snowflake) IPO. Submitted request to my broker but chances of actually winning shares look pretty slim. Is anyone else here anticipating their IPO?

 

[tivoboy]

Already in, been a customer and deployed with others nearly 5 nears now. I’m also considering more net buying depending on what happens at the open. I’m HOPING for only like a 20-25% pop, settle, then will add to whatever I get.

This is NOT a recommendation to buy or sell any equity.

 

[Dharma]

Good for you! What price were customers able to get in, if you don’t mind my asking.

Already in, been a customer and deployed with others nearly 5 nears now. I’m also considering more net buying depending on what happens at the open. I’m HOPING for only like a 20-25% pop, settle, then will add to whatever I get.

This is NOT a recommendation to buy or sell any equity.

 

[tivoboy]

Good for you! What price were customers able to get in, if you don’t mind my asking.

Yeah, no. Sorry

 

[Dharma]

Yeah, no. Sorry

No worries. It would have just made me envious

 

[AudubonB]

SPACs. That is what seems to be driving a lot of market hype around EVs (other than Tesla, of course, which is not a SPAC).

Special Purpose Acquisition Corporations, also known as blank check companies, get born in an IPO raising typically hundreds of millions of dollars. They have 18 months from IPO to announce an acquisition, and 2 years from IPO to deploy the capital, or else they must return it to the IPO investors. The theory is that with public company P/Es reaching 22 or 24 on average, a SPAC can buy a private company at an 18 P/E and be ahead of the game.

However, due to the huge amount of money now being poured into SPACs (I watch recent IPO filings and it seems that 80% of new IPOs are now SPACs), there aren't enough quality private companies to go around, hence they start to buy speculative companies with negative earnings, or even no sales.

That's what NKLA was, a SPAC acquisition.

IMHO, the problems with SPACs is that the target company gets to go public with ZERO SEC oversight. No prospectus, no finicky SEC lawyers asking you to clarify or disclose things you'd rather not disclose. And the SPAC gets to artificially set the market cap of the acquired company. There is no market (bidding) mechanism to set IPO price. And maybe even worse, there is no built in institutional support for the stock price. In a normal IPO, you have institutions who buy the stock, and you have a plethora of brokerage companies (the underwriters) whose analysts follow the stock and issue reports. Those brokerage houses are incentivized to prop up the stock price so that they can earn the next lucrative IPO to come along. SPAC companies have none of this.

So, just buyer beware whenever you see a company going public via SPAC acquisition, or reverse merger into a public shell, or a direct listing. They've all bypassed the normal IPO process that has built in safety mechanisms for investors, and helps support the stock price.

Here's an interesting article talking about recent EV related SPACs: Little-known EV and lidar firms are raising billions in Tesla’s shadow

I should add this post to the ones I wrote coruscating SPACs today both in the Main thread as well as in the Nikola one. As you likely know, I have a rather frosty opinion of them.

 

[Green Pete]

Anyone aware of publicly traded water or agriculture companies with promise? Vertical farming or something of that nature. I know of companies that are in the pre-IPO stage but nothing that I can invest in at this time.

 

[NCC1701T]

Anyone aware of publicly traded water or agriculture companies with promise? Vertical farming or something of that nature. I know of companies that are in the pre-IPO stage but nothing that I can invest in at this time.

Wow, what a great question! As an avid gardener/wanna be farmer I hope someone can answer this!

 

[AudubonB]

A zillion years ago - late 80s or early 90s - I tried to find water companies to emplace in some Environmentally Responsible Funds we managed.

Any number of the private water utilities jumped on the bandwagon at that time - I could not, however, discern any justification for calling themselves environmentally responsible. Just a heads-up for anyone looking into same.

 

[Green Pete]

I'd love to invest in a company like this. I have no idea how one get into something like this tho. I'm new to qualifying as an accredited investor, and very very uneducated.

Iron Ox raises $20 million for its robotic farms – TechCrunch

 

[UnknownSoldier]

It looks like Nvidia x ARM really is happening after rumors the whole year. This is a big, big deal that shifts the balance of power in the semiconductors industry. With once-mighty Intel in a state of decline akin to the fall of the Roman Empire and AMD raiding Intel’s territory like the barbarian tribes did during their incursions to Rome, Nvidia is poised to rise up and claim a new throne in semiconductors. Nvidia’s GPU technology, Mellanox’s interconnect tech, and ARM’s CPU core tech in combination is something Intel should fear in the server and datacenter spaces, places Intel traditionally dominated with no competition whatosever for decades.

 

[Buckminster]

Has anyone researched Moderna? Market cap = $23Bn.

They are the only mRNA Covid vaccine out of 8 in phase 3 trials. Plus a fair bit in the pipeline.

 

[killianss]

I would stay away from MRNA.
Their insiders have been selling A LOT since the covid started.

Their vaccine is meh.. needs -94F to be stable.

I have NVAX.. but sold most if it for TSLA.
Good luck

 

[UnknownSoldier]

Well, it’s now official. The Era of x86 will finally end, the victory of ARM is at hand.

 

[aubreymcfato]

I bought an handful of CVAC, for the sole reason that Tesla builds hardware for them.

 

[Buckminster]

I have put a small amount into maybe 50% of those mentioned on this thread in the last few months with next to no research. Nearly all have done brilliantly. Thank you all. Please all stay here with your insights forevermore.

 

[Featsbeyond50]

I have put a small amount into maybe 50% of those mentioned on this thread in the last few months with next to no research. Nearly all have done brilliantly. Thank you all. Please all stay here with your insights forevermore.

Everyone's a genius in a bull market.

 

[UnknownSoldier]

Everyone's a genius in a bull market.

If this is really true, then why isn't everyone rich?

 

[tivoboy]

Already in, been a customer and deployed with others nearly 5 nears now. I’m also considering more net buying depending on what happens at the open. I’m HOPING for only like a 20-25% pop, settle, then will add to whatever I get.

This is NOT a recommendation to buy or sell any equity.

So, I dint’ get my full requested allotment, but having a bit in is fine. Frankly, I did NOT expect rhis IPO pricing, but it seems the big players need to be pad. If we get a large pop to 145$ tomorrow, I’m going to have to seriously consider taking that money off the table. Market price and value assessment, IMHO is really pretty out of whack at this time, right now. #SNOW

 

[vikings123]

So, I dint’ get my full requested allotment, but having a bit in is fine. Frankly, I did NOT expect rhis IPO pricing, but it seems the big players need to be pad. If we get a large pop to 145$ tomorrow, I’m going to have to seriously consider taking that money off the table. Market price and value assessment, IMHO is really pretty out of whack at this time, right now. #SNOW

There is so much interest for this IPO. I would not be surprised to see this hit your target price tomorrow. Crazy valuation for sure but at least they seem to have a product that companies seem to want.

I actually know a client who uses Snowflake, hoping to talk to someone at this client this week to get a user’s perspective. Will report back with what I find out. Cheers.