Category: Investing

Best Ways to Monitor IPOs

Best Ways to Monitor IPOs Romeo DiBattista Jr.png

An initial public offering (IPO) is the process a private corporation offers shares to the public for the first time. New companies that are concerned with growing will often use IPOs to gain useable capital. Organizations that have been around for longer may opt to allow an owner to sell their shares to the public as well.

A major reason for investing in an IPO is due to the possibility of buying an underpriced stock before it rises in price. Therefore, it is important for investors to have a method of tracking new IPOs to take advantage of any opportunities.

Below is a list of several websites that can be used to track IPO data.

Exchange Websites

Exchange websites can be reliable fonts for new IPO information. Websites such as Nasdaq and New York City Stock Exchange have a section dedicated to upcoming IPOs. These sites are known to be very reliable as they take their data from official sources.

IPO Monitor

This site is dedicated to IPO tracking. It does this by providing specific information and news regarding IPOS such as IPO withdrawals, IPO following, and high performing companies. While it’s a subscription-based service, this is a good tool that anyone can use.

IPO Scoop

Another paid subscription service, this site provides many of the same services as IPO Monitor. As an alternative to its competition, IPO Scoop is a viable option to track public offerings. This site also provides information on IPO withdrawals, IPO following, and so on.

Google News

Beyond stock changes, Google also provides a vital service to the market. Generally speaking, the press is what moves money around, and Google News provides an easy way to keep up on upcoming IPOs. Google makes it simple to do this by signing into an account and creating news alerts for a specific term. This sends news as soon as it comes out to the inbox to be viewed at the account holder’s leisure.

Yahoo Finance

Yahoo maintains a finance section in addition to its search engine. Better yet, this free service provides a dedicated IPO section. This area contains pertinent information such as IPO dates, prices, and symbols with links to IPO profiles. Furthermore, Yahoo Finance has a system that keeps track of past IPO performance.

From RomeoDiBattistaJr.me

IPOs to Look Out for in 2019

IPOs to Look Out for in 2019 Romeo DiBattista Jr.png

In this article, we explore the IPOs anticipated to go public and make a big impact in 2019. In 2018 there was a burst of initial public offerings; however, 2019 looks even more alluring. There’s a handful of multibillion-dollar companies expected to go public. The following are the hottest upcoming IPOs to keep an eye on in 2019.

To no surprise, Uber is high on the list as one of the upcoming IPOs in 2019. Uber has confidentially filed to go public with the Securities and Exchange Commission early December. Uber’s goal is to beat their rival Lyft to Wall Street. Uber is expected to go public by the first half of 2019. Potential IPO valuation is expected at $120 billion.

Next on the list is Uber’s rival Lyft. Lyft isn’t just competing Uber with ride sharing, but they’re also competing them with the first to adopt self-driving cars and thus reducing labor costs in the hopes to break even. Lyft is also planning to go public in the first half of 2019. In fact, Lyft coincidentally confidentially filed to go public on the same day back in December. Lyft definitely has some major backers, which include General Motors Co., Alphabet, Icahn Enterprises and Fidelity. Lyft’s potential IPO valuation is estimated at $15 billion.

The third on the list is Airbnb. Unlike the two previous companies, Airbnb is reportedly pondering a “direct listing.” This move will cut out Wall Street underwriters and sell shares straight to the public. The negative side of this move is that the company doesn’t earn any of the proceeds. This approach allows insiders to cash out. The potential 2019 IPO valuation is estimated to be at $31 billion.

Finally, coming in at fourth is the company Slack. Slack is a hot startup company that is rushing to go public by the end of the year. Slack is a workplace messaging app. As they’re prepping to go public, they hired Goldman Sachs to assist with lead underwriting duties. Their daily users are impressive, boasting 8 million total users and 3 million paying subscribers in mid-2018. Since Slack is a messaging app, they do face strong competition from Microsoft, Alphabet, Cisco Systems and Facebook. Slack’s 2019 IPO estimated at $10 billion.

From RomeoDiBattistaJr.me

Ways to Invest in Foreign Countries

Ways to Invest in Foreign Countries Romeo DiBattista Jr.png

Investing in foreign countries can be a very attractive option. Emerging markets can offer great returns. As more countries around the world industrialize, there are very exciting opportunities becoming available there. Of course, there can also be great risk with these investments.

However, foreign investment is a great way to diversify a portfolio. Foreign markets are often up when Canadian markets are down, and vice versa. This means that investing overseas can help Canadian investors ride out domestic recessions. This is one of the most important reasons to consider investing abroad.

There are great options for investing abroad, too. There are over a dozen other stock markets worth looking at around the world. Today, many of the biggest natural gas, oil, and steel companies in the world are located outside of North America. Investing overseas can mean getting in on a rising Standard Oil type company.

Of course, when investing abroad, it’s important to think about issues abroad. Some developing countries have real problems with political and economic stability. This is typically called country risk. Staying abreast of international politics can be a great idea to keep invested funds safe. It’s always important to know what is going on with investments overseas.

One easy way to invest in foreign countries is to use ADRs. These are traded on the NYSE and NASDAQ. This makes it more accessible for Canadians who are used to trading on US markets. Differences in currency exchange are another factor to keep in mind when deciding whether to invest overseas or not.

If currencies fluctuate too much, they can wipe out earnings from foreign markets. When buying stocks in foreign markets, it’s necessary to use foreign currency. If those currencies go down compared to the dollar, that means any gains in the stock are negligible. Since ADRs remove this problem, they are a wonderful solution for Canadian investors.

Other solutions that minimize risk include investing in multinationals. This provides some exposure to foreign markets, without fully taking the plunge. Alternatively, some foreign stocks do meet listing requirements and are listed on NASDAQ and NYSE. However Canadian investors decide to make moves overseas, they need to balance risk and reward carefully. Getting acquainted with US markets may be a good first step into investing in other countries, as you’ll run into some of the same issues with currency, but it is much more accessible for the average Canadian.

From RomeoDiBattistaJr.me

How an IPO is Set Up

How an IPO is Set Up Romeo DiBattista Jr.png

When a company goes from private to public, that process is known as an initial public offering, or IPO. IPOs are a great way for companies to grow. Private companies have few investors. They may have been funded by the founders, some family members and friends. Some promising private companies may also attract angel investors.

An IPO is a great way for a company to level up. Selling new shares means there will be more money available to pay down debt and fund new research. Initial public offerings can also attract lots of media attention. They can also be a great marketing tool.

IPOs are also one way that founders and early investors in a company can monetize their own shares. By selling off some of their stock, they can transform the estimated value of their company into cold, hard cash for the first time. For example, when Facebook went public, Mark Zuckerberg sold some of his own shares and made over $1 billion.

The process for an IPO is fairly complicated and can take six months to a year. First, companies need to get at least an investment bank on board. Sometimes, multiple investment banks are involved. They may work together as a team, or each bank might work alone under their own power.

The next step is to meet with the SEC. Everyone must attend these meetings: lawyers, underwriters, company management and auditors. These meetings are crucial. They will determine the size of the initial public offering and how it is timed.

After this meeting, lots of due diligence is required. This includes market due diligence, legal due diligence and IP due diligence. When the due diligence is complete, the S-1 Registration Statement can be completed.

An S-1 Registration Statement is very detailed, including historical financial information, risk assessment and more. Once it’s ready, a pre-IPO meeting is held so bankers and analysts can learn about the IPO. This also educates them on how to sell it to people. A preliminary prospectus might also be prepared.

Market research is conducted to figure out how investors feel about the company, and what price they would be willing to pay. Managers will meet with investment bankers to settle on a final price. Then, shares are allocated to investors by investment banks, and the stock starts to trade publicly.

From RomeoDiBattistaJr.me

Entering the Competitive Field of Private Equity Investing

Entering the Competitive Field of Private Equity Investing Romeo DiBattista Jr.png

This article will explorer the challenges of entering the field of Private Equity Investing. This field has become a sought-after industry. As a result, it can be difficult to become an associate. To begin with, private equity firms look to hire entry-level staff who have a minimum of two years of experience as an investment banking analyst. In comparison to investment banks, associates that work at private equity firms are notorious for working long hours. This is common when they’re closing a deal.

Another qualification to become an associate is their education and training. In addition to the required experience is having a bachelor’s degree. The degree can be in finance, accounting, statistics, mathematics, or economics. It isn’t common for private equity firms to hire straight out of college or a business school. The exception is if the student had a private equity internship. Some private equity firms reach out to former management consultants to fill a position. Another commonality to fill a position within the firm is networking. Some companies have their preferred choice of headhunters to assist with fulfilling a vacancy.

A key factor to becoming considered for this small field is the expectation of handling the required duties. Together with experience, leadership is another major positive in any candidate. An associate will be expected to handle analytical model, portfolio company monitoring, reviewing CIMs (confidential information memorandum), and fundraising. From the aforementioned, the primary function that’s expected from the associate is to provide analysis to the principals and partners to make an informed decision about the deal. A common task would be setting up preliminary due diligence reports and modeling the expected growth forecasts.

Many people explorer the opportunity of entering this field, because of the salary and compensation. This is another reason for the competitiveness and difficulty of becoming an associate. It is not uncommon for first-year associates to make up to $250,000, and with a bonus of 25-50% off their base salary. The typical protocol for working your way up the firm is starting off as a Senior Associate, then Vice President/Principal, and finally as the Director/Partner.

In summary, a private equity associate is expected to participate in deals from inception to closing. The work is satisfying and financially rewarding.

From RomeoDiBattistaJr.me

Changes for Employees After an IPO

Changes for Employees After an IPO Romeo DiBattista Jr.png

When a company has an IPO (initial public offering), it means that the company is offering shares to the public for the first time. Companies can choose to go public for several reasons, such as they need capital, the company wants to invest in further growth. In some cases, they go public to allow owners to exit the company. While some of these might sound bad, it can actually be a very good thing for employees.

A perk for employees is that they might be given shares as compensation, or the chance to buy shares in the company.

After the IPO is in effect, the price of the share will likely rise, and the employee will have benefitted by purchasing the share at a much lower price. This rise gives employees an advantage if they choose to sell or keep their shares. If the company’s shares continue to do well in the market, then there is the possibility that the employees will be offered bonus shares at an advantage not given to the public. Tech companies are a prime example of an IPO working out extraordinarily well for employees, such as those who worked for Google and Facebook.

Employees should take advantage of shares offered, as it is a great way to make extra money, and there are virtually no downsides. These type of shares have even created millionaires.

While day to day operations will likely remain the same for general employees, those who work in finance and human resources will probably have a change in workload for a period. There will be new business complexities that will have to be implemented and honed to keep the company running smoothly. The company will also be responsible for SEC filing and complying with SOX.

There are some things that will change in the chain of command as well. A board of directors will be implemented into the company to ensure that decisions made will benefit the shareholders. This has the potential to change the leadership style and perhaps the workplace environment.

The company will also likely hire new employees to keep up with the demands that come with being a public company. So current employees can expect team growth.

In conclusion, going IPO will not change much for employees and can even be beneficial.

From RomeoDiBattistaJr.me

The Real Estate Development Process

The Real Estate Development Process Romeo DiBattista Jr.png

Real estate development is a potentially lucrative field for anyone looking to invest. It takes a great leader to become a developer, as collaborating, planning, and executing a build ultimately falls back on the developer. Before you commit to diving headfirst into the world of real estate development, read this article to find out what it really takes to start.

Part 1: Pre-Construction

Although most people think of construction when they think of development, there are actually several steps that come before it. You will need to acquire financing, find legal professionals, and search for a property. Builders and architects will need to draw up plans based off of the zoning laws of the township, and the land will need to be surveyed to ensure the integrity of the land. Beyond this, there will be tons of paperwork, many fees, and constant collaboration. You will need to know where you are with each member of your team at all times, as they may not talk to one another.

Unfortunately, many people underestimate the amount of time, effort, and money all of this takes. Some developers get partway through this process and realize they do not have the funds or mental capacity to deal with a project of this size. My advice: imagine how hard you think this will be and expect it to be 10 times harder, at least. Then, you can realistically decide if this is right for you.

Part 2: Construction

If you managed to get through all of the pre-building paperwork, it is now time to move on to construction. Any experienced developer will tell you to expect construction to take several months (or even years!) longer than you planned. Construction workers can run into all kinds of problems, such as delayed materials or hitting a ground pipe. Even more frustrating than the time delay can be the money problem. Any time your construction team runs into an issue, it can cost thousands of dollars. Make sure you have enough financing to cover anything that could arise and be prepared to be patient.

Part 3: Post-Construction

Once your new house or office building is completed, it is time to sell the property or rent it out. This process should be self-explanatory, but again, make sure to account for plenty of time between the end of construction and a finalized contract. This time will also cost you money, as the development loans will need to be repaid one way or another.

Although real estate development can be stressful, time-consuming, and even risky, it is ultimately a very rewarding process. Not only will you have made a (hopefully) lucrative investment, but you will have a major project to show for it. Still, before you decide to head into a new development project, make sure to carefully consider whether or not you are equipped to handle all three parts of a development project.

From RomeoDiBattistaJr.me

Differences Between Various Investments

Investing is a tough subject to navigate because there are no certainties with investments. You could easily put every penny you have into an investment and lose it all instantly, so you should be careful about what to invest in. Although I can’t give investment advice, I would like to lay out the facts about the differences between various investments, including their risks.

Real Estate

Real estate is one of the safest things to invest in, as long as you can afford it long-term. You may buy several properties with the hopes of renting them out, only to find that nobody in your area is looking to rent. Or, you may find damage to your property that could cost thousands of dollars to repair. Buying real estate is a hard asset, though, so you are extremely unlikely to lose everything unless your property gets foreclosed.

Stocks

Stocks are risky because you can never predict what a company will do in the future. For example, a new product could tank, or there could be a scandal against the CEO. Sometimes, stocks drop just because an “expert” decides it’s time to sell. Still, many people make a living from trading stocks, so keep in mind that great risk can lead to great rewards.

Mutual Funds

Mutual funds are like stocks, except you only put pennies into each. A mutual fund can tank, but it is highly unlikely that you will lose all of your money right away. Likewise, you are unlikely to gain money rapidly.

Businesses

Investing in a startup is fun and exciting, but like the stock market, it is incredibly risky. Most companies do not make it long-term, so you should be absolutely sure of success before diving in. Or, you should at least be comfortable with high risk.

Cryptocurrency

Cryptocurrencies are the new stock market in many ways. They are extremely volatile, as evidenced by Bitcoin’s rise and fall. While you may be safer with lower-priced altcoins, there is no guarantee, so be careful with your investments and watch prices constantly to ensure you don’t lose everything you have.

Overall, investments are risky and can lead to devastating consequences if you are not careful. Do your research on any investment vehicle you are considering, including historical data and future projections. And keep in mind that even Warren Buffett loses investments, so if it can happen to him, it can certainly happen to you.

How Do I Start Investing?

How Do I Start Investing-

The first step to investing is to save. Saving is essential, primarily when investing in high-risk properties. There is always the possibility of losing your money, or a tragic event occurring, which requires a substantial amount of money. If you can manage to build up an emergency fund, you won’t have to worry as much about the possibility of your investments tanking.

Next, you want to determine your investment goals. There are a few factors to consider:

  • How long do you want to invest? Some investments may require your money to be tied up for long periods of time, while others are more open-ended, although many times the longer you invest, the higher the return.
  • How much risk are you willing to take? Investing in the stock market is the riskiest option, but can lead to significant returns. CDs have little-to-no risk, but their gains are minimal. If you’re not sure where to start, consult a professional or place more emphasis on the other points.
  • How much attention do you want to give? Real estate and the stock market are two needy investments. If you have no time to spare, consider investing in a product with a steady rate. That way, you won’t be surprised by your returns.
  • How much money do you have available? I’m not merely talking income, as with real estate you can get a mortgage. It is essential to understand the total amount of money you have to put toward investments, and do not bite off more than you can chew. That being said, if your budget is tight, consider investing using an app, such as Acorns or Robinhood. These apps are marketed toward those looking to get started in the stock market but don’t want to place hundreds of dollars in.

After you’ve determined your goals, look into the different options available to you. Make sure to consider possibilities outside of your comfort zone. You may find a choice you haven’t heard of, and it could lead to great success. For now, let’s look at a few investment options:

  • CDs – These are time-deposits backs by banks. You make an Annual Percentage Yield (APY) off of them, but your money is stuck in the account until the period is up, which can be a few months or a few years. Closing the account ahead of time can result in costly fees, so if you’re strapped for cash, CDs may not be the right option.
  • Roth IRAs – “Save for retirement while you’re young!” says every parent. It is important to think about your future, and even though retirement may be many years away, investing in it now will help you worry less later. Plus, one of the benefits of a Roth IRA is you pay the tax on your money upfront, so you can withdraw your money later without paying any taxes on it. However, just like CDs, IRAs tie your money up for years.
  • Stocks – Stocks are one of the riskiest investments you can make. However, people have made more than enough to survive on stocks alone. If you’re interested in watching the stock market, look into buying a few inexpensive stocks to start.
  • Mutual Funds – Like stocks, mutual funds invest in the stock market. The difference is, mutual funds spread out your investment, so even if one stock tanks, you can still make money.
  • Real Estate – If you are hands-on, or are interested in managing tenants, real estate may be an option for you. It can be incredibly lucrative, and there are tons of ways you can be a real estate investor, from flipping houses to being a commercial landlord.
  • Cryptocurrency – A new and innovative form of payment is cryptocurrency. If you’re skeptical about the banking system or want to buy into cutting-edge fintech, check out the various kinds of cryptocurrency, including Bitcoin.

No matter how you decide to invest, there are two things you should always do: research options and talk to a financial advisor. In no time you’ll be making your first investment!

Originally posted on RomeoDiBattistaJr.me