The Cause of Big Minus Startup But Its Stock Price Remains
High
Before deciding to invest in technology stocks, Smart People
may often be confused by the condition of startups that are already in a big
minus, but their stock prices are still high. Just look at how many technology
startups have laid off or laid off, but their share prices are not at all low.
One of the reasons behind this condition is because the
company's performance projections in the future are predicted to continue to
increase. Speculation about startup conditions that will be brilliant in the
future, will make the share price high even though the current condition is
minus. Investors will also continue to buy the startup's shares.
Tips on Analyzing Technology Stock IPOs
Before deciding to invest in a technology issuer, make sure
Smart People has done an analysis of these technology stocks. This analysis was
carried out to avoid discrepancies between Smart People's expectations and
technology stocks that will be purchased later. Check out the following tips on
analyzing the IPO of technology stocks.
1. Information Source Analysis
The first step to analyzing technology stock IPOs is to look
for sources of analytical information. Smart People can use company
prospectuses, industry analysis reports, and competitor reports, to analyze
these technology stocks. After understanding each of these sources of analysis,
then make a decision whether to invest or not.
2. Use of IPO Funds
The next tip for analyzing technology stock IPOs is to find
out the use of IPO (Initial Public Offering) funds. Smart People, of course,
already know that after the IPO takes place, the company will receive new
funding from investors. So, what Smart People should know is how the new intake
of funds will be utilized.
The use of the IPO funds themselves varied, some used the
IPO funds to pay off the company's debts, and some used it to finance the
company's new projects, so that the prospects would be even better going
forward. Smart People must ensure that the IPO funds will have a positive
impact on the company.
The purpose of using the IPO funds itself can be known by
Smart People from the prospectus of the technology company. So, don't be lazy
to read and understand the company's prospectus, in order to find out the use
of IPO funds which of course will have a significant impact on the company.
3. Type of Shares Sold
The next tip for analyzing technology stock IPOs is to find
out the type of stock being sold. There are 2 types of shares that are commonly
issued at the time of an IPO, namely new shares and old shares owned by the
owner which are sold. The difference in the types of shares being sold, which
Smart People may buy, will affect the development of the company.
If the issued shares are new shares, this means that funds
will enter the technology company. The funds will later be used for company
expansion needs or other projects. However, if the shares are old shares being
sold, the funds will go to the owners of those shares. Usually this is done by
the old shareholder to exit.
20. Lock Up Period
Recently, GOTO has just ended its lock up period after 8
months. So, the lock-up period itself can be used by Smart People as a basis
for analyzing technology stock IPOs. This lock up period refers to the period
in which old investors and company insiders are not allowed to sell company
shares.
Smart People can find out whether or not a technology
company has a lock-up period, and how long the lock-up period lasts from the
company's prospectus. Why is this lock up period worth knowing? The reason is
because it will trigger a negative sentiment on the technology stock price
after the lock up ends.
5. Global Market Trends
Smart People can also analyze technology stock IPOs by
gathering information on global market trends. Find out how similar stocks have
performed overseas recently, besides that, look at the array of macroeconomic
factors that affect the performance of these technology stocks. In this way,
Smart People will get new insights regarding these technology stocks.
Ready to Invest in Technology Stocks by Using RHB Tradesmart
ID
If you have finished analyzing technology stock IPOs and
decide to buy them later, use an online stock trading application that can
support Smart People's stock investment activities. Smart People can use RHB
Tradesmart ID which has many excellent features, to help maximize returns from
investing in these technology stocks.
One of the superior features of RHB Tradesmart ID that will
make Smart People feel at home using it is the Smart Analyzer. The Smart
Analyzer with ARO (Assisted Robo Optimization) will help Smart People analyze
technology stocks that Smart People are eyeing, so that later Smart People can
more easily take action on these stocks.
That was a brief review of tips on analyzing technology
stock IPOs. There are many things that Smart People should know about the
company's stock, so the prospectus, industry reports, and competitor reports
are very appropriate to study.
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