by Michael Keane
A few things happened in the last couple of weeks in the IPO arena that strengthens the desire to having decentralized value more prominent. The not so wonderful feelings of fear and greed were (and are) currently present in the WeWork, Peloton, and Saudi Aramco IPO process and it hurt all three companies.
The closely guarded and deeply centralized IPO process did not work well. Conversations in the media like Sonali Basak from Bloomberg are picking up on this topic. First, the IPO of We Work was pulled with the drama of its financials and the CEO. The IPO of Peloton fell flat on its face. Some feel it got taken on the idea that the valuation is for a tech company. The government of Saudi Arabia is doing more than a few things not in its normal behavior in order to get the IPO of Saudi Aramco done. They seem to be rushing through to the IPO, ignoring the security issues as well as the stagnation and possible downward momentum in the price of oil.
One improvement may be the idea of the Dutch auction model that Google
used. It just seems that there is a better deal out there for investors
when it comes to IPO's. Firms not associated with the company going
public like Morningstar and other analyst firms can and likely should be
the driver behind how an IPO should be analyzed and sized up for
investors.
Possible investors in all three companies would be served better in its goals of investment with a more visible and transparent IPO process. Sometimes, it can be a bad combination when you have private company investors looking to profit from their investment by having an IPO and investment bankers hungry for that fee. Taken separately, both are fine. But together, the above mentioned issues show up on a regular basis. If a less biased look at the company can happen, new investors, the company, and the market will be better served.
Good luck in all your trading and investing matters!
**All
posts on this blog are information and opinions only. They are not to
be considered recommendations to buy or sell any security. Please do
your due diligence first before trading and investing. Please direct all
questions and comments to the blog, kdkfund@gmail.com, or on
twitter @kdkfund.
Showing posts with label Google. Show all posts
Showing posts with label Google. Show all posts
Sunday, September 29, 2019
Sunday, December 27, 2015
Ford Google Partnership
There has been some news that Ford (a current KDK Fund holding), and Google are partnering on future car endeavors. The fund is excited about this as it shows that Ford is being proactive when it comes to large issues in the car industry.
Attached are a few stories (one from Barron's Ben Levisohn here), (USA Today's Alisa Priddle Detroit Free Press here), and (WIRED's Alex Davies here).
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.
Attached are a few stories (one from Barron's Ben Levisohn here), (USA Today's Alisa Priddle Detroit Free Press here), and (WIRED's Alex Davies here).
**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.
Saturday, December 7, 2013
KDK Weekly Report (IAU Put Trade and More) 12/7
KDK Fund once a week will write about the week's performance, the thoughts on the future trades, and other financial information thought to be relevant to the account.
- IAU December $12.00 Put Trade - During the week, IAU dropped from a close of $12.13 last Friday to a close of $11.93 this Friday. The put price stayed the same at $0.20. There was positive news on the economic, employment, and manufacturing numbers that were instrumental in this week's drop. The likelihood of the drop continuing is high as the Federal Reserve meets on the 17th and 18th of December to discuss the possibility of tapering the $85 billion monthly QE. Gold is nearing the yearly low. There has not been a large volume day to indicate that a bottom has been reached. Technicals and fundamentals are suggesting a continuation of the down trend. There is still quite a bit of interest in the trade as the time value is higher than expected. Positives for gold include buying pressure from China. KDK Fund will continue with the trade as it is. The goal is still $1.00 for the put. The trade will end by December 20. The initial post of this trade can be found here.
- The fund is gearing up to make its first trade of 2014. It will be made in either the first or second week of January. The plan is to buy Verizon, Ford, Google, United Healthcare, and Costco (not order specific) during the year.
** This blog is just information and opinion regarding a particular fund. It is not to be taken as a recommendation to buy or sell any security. Do your own due diligence before trading or investing.**
- IAU December $12.00 Put Trade - During the week, IAU dropped from a close of $12.13 last Friday to a close of $11.93 this Friday. The put price stayed the same at $0.20. There was positive news on the economic, employment, and manufacturing numbers that were instrumental in this week's drop. The likelihood of the drop continuing is high as the Federal Reserve meets on the 17th and 18th of December to discuss the possibility of tapering the $85 billion monthly QE. Gold is nearing the yearly low. There has not been a large volume day to indicate that a bottom has been reached. Technicals and fundamentals are suggesting a continuation of the down trend. There is still quite a bit of interest in the trade as the time value is higher than expected. Positives for gold include buying pressure from China. KDK Fund will continue with the trade as it is. The goal is still $1.00 for the put. The trade will end by December 20. The initial post of this trade can be found here.
- The fund is gearing up to make its first trade of 2014. It will be made in either the first or second week of January. The plan is to buy Verizon, Ford, Google, United Healthcare, and Costco (not order specific) during the year.
** This blog is just information and opinion regarding a particular fund. It is not to be taken as a recommendation to buy or sell any security. Do your own due diligence before trading or investing.**
Tuesday, October 29, 2013
Long Term Investments For 2014
Hello all
The fund has spent the last couple of months looking at what to invest in for 2014 and has come away with 5 companies. As of right now, the list includes Ford, Verizon, Costco, Google, and United Healthcare. The feeling is that this group of stocks provide a mix of strong dividend and stock price appreciation.
The fund is looking to invest in Ford primarily for its growth prospects. North American sales are good and Europe seems to be bottoming out. Ford also continues to be led by a very good management team and gives a 2%+ dividend (annual) in the third month of the quarter.
The fund is looking to invest in Verizon because of its leadership in the communications sector. It gives a 4%+ dividend (annual) in the second month of the quarter.
The fund is looking to invest in Costco because of its outstanding leadership and steady stock price growth. Costco gives a 1%+ dividend (annual) on the second month of the quarter.
The fund is looking to invest in Google because of its growth prospects in most of its product areas. Their innovative processes combined with their business plan execution shows a large promise of profit.
The fund is looking to invest in United Healthcare because of its growth prospects. The Affordable Care Act should help with new enrollment. The company gives a 1.5%+ dividend (annual) on the third month of the quarter.
All five of these companies have at least what can be considered strong balance sheets.
The trailing PE ratios are 11 for Ford, 20 for Verizon, 29 for Google, 13 for United Healthcare, and 26 for Costco.
Purchases will begin in January of next year. Purchases and sales of stock will go through Sharebuilder.
The fund has spent the last couple of months looking at what to invest in for 2014 and has come away with 5 companies. As of right now, the list includes Ford, Verizon, Costco, Google, and United Healthcare. The feeling is that this group of stocks provide a mix of strong dividend and stock price appreciation.
The fund is looking to invest in Ford primarily for its growth prospects. North American sales are good and Europe seems to be bottoming out. Ford also continues to be led by a very good management team and gives a 2%+ dividend (annual) in the third month of the quarter.
The fund is looking to invest in Verizon because of its leadership in the communications sector. It gives a 4%+ dividend (annual) in the second month of the quarter.
The fund is looking to invest in Costco because of its outstanding leadership and steady stock price growth. Costco gives a 1%+ dividend (annual) on the second month of the quarter.
The fund is looking to invest in Google because of its growth prospects in most of its product areas. Their innovative processes combined with their business plan execution shows a large promise of profit.
The fund is looking to invest in United Healthcare because of its growth prospects. The Affordable Care Act should help with new enrollment. The company gives a 1.5%+ dividend (annual) on the third month of the quarter.
All five of these companies have at least what can be considered strong balance sheets.
The trailing PE ratios are 11 for Ford, 20 for Verizon, 29 for Google, 13 for United Healthcare, and 26 for Costco.
Purchases will begin in January of next year. Purchases and sales of stock will go through Sharebuilder.
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