StockReversals.com📈 · @StockReversals
18th Dec 2014 from TwitLonger
Our rant on EYES IPO Nov 22nd
We were totally bearish on the EYES IPO back in November when retail was chasing it up. Here are our notes on Nov 22nd weekend report, the stock has dropped $10 from $22 to $12.90 post IPO... We keep it real... some just dont like to hear the truth
"Welcome to the public stock markets where people chase the latest hot IPO, such as this weeks EYES which has a 900 million market cap and 2 million of annual sales. A company that has been around for 16 years and never made a dime of profit and has 117 million of accumulated losses. A company who had convertible bond debtholders they needed to pay off. Best way to do that is sell a sexy story and hire a sub-par underwriter at a low commission rate to sell your IPO to retail investors. Hey, it worked so we are not knocking them but we also wouldnt call this a fundamentally strong story either. That said, fundamentals don’t matter though when there is a classic Wall Street thin float IPO with a sexy story… no profits, but the story is water cooleresque man! It’s all fun and games until the next quarterly report comes out and that formerly hot trading stock shows its true colors with actual numbers that may be a bit sobering and not so sexy no? With that said, we understand those day trader plays look tempting and often you can make a few bucks on them if you are quick, but you can also lose 15-20% of your trading dollars in 1-2 days when the sexy story wears thin."
http://stockreversals.com/2014/11/22/weekend-report-consolidations-are-annoying-eh/