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Airbnb was listed on the Nasdaq on Thursday, and while it was priced higher than initial plans, it ended the day up 112% with a market capitalization of $ 86.5 billion. Even crazier is that this day one pop was only the 10th best move from the day one IPO for 2020. I spoke to Anchor Capital’s Henry Biddlecombe ahead of listing to get his thoughts on the stock and its valuation. His comment was that the initial IPO price was 10-15% too expensive, but that the IPO price is never about valuations.
Sygnia’s annual results saw Diluted Heps rise 64.6% as its low-cost passive offering found solid support over the past year and even trading now generates around a quarter of its revenue. I spoke with Joint CEO David Hufton about the business, the competition, and how the future of asset management is ‘low cost’, something this group already offers, while other financial services companies still need to cut costs.
Altron’s share price collapsed on Monday when Bytes UK was spun off, which will be listed on the JSE and the London Stock Exchange next Thursday. Cannon Asset Managers’ Adrian Saville gave us an overview of Altron’s provenance, what’s left in the business and Bytes UK’s prospects. Certainly Bytes UK is likely to garner quite a bit of attention as one of the few tech games to feature on the JSE.
Buying a stock is difficult, as it involves doing your research, reaching a conclusion, and then having the courage of your convictions to act and buy. Once you have bought a stock, the next question is even more difficult: when to sell? I spoke with Keith Mclachlan from AlphaWealth about how we know when to sell and he gave me a lot of good advice, especially his point that a good lead starts with a good lead. Therefore, we must know why we bought a particular stock, as knowing what made it buy helps greatly in knowing when to sell.
Also this week:
Sanlam’s Nick Kunze talks markets, with the JSE at near-record highs and oil on the rise; and we dove deep into listed properties with Steven Brown, CEO of Fortress Reit, after a lousy 2020 for the industry.
