3 Red Hot IPO’s You Need to Know About

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3 Red Hot IPO’s You Need to Know About

A flurry of really cool stock IPO’s began trading on the NASDAQ exchange in the last week and I want my clients to know about all of them.

Here’s a quick run down on all three – if anyone is interested in discussing please send me an email or give me a call.
 

A Silicon Valley Tech Monster Valued at $18 Billion Goes Public

Slack Technologies (NASDAQ: WORK) is a business software company headquartered in San Fransisco. The company’s main product is a software platform that functions like a messaging system that helps companies and employees communicate and share data better.Slack began trading on the NASDAQ exchange on Thursday, June 20. This is no small-time operation – Slack has a market cap of $18 billion. With sales of $400 million in 2018, Slack has a price-to-sales ratio of 40. This is a very pricey stock – investors are very optimistic and pricing in a lot of growth.

Shares were expected to start trading at $26, but first trades went off at $38, indicating strong demand from investors. Shares are down about 10% from the all-time high, but are still up almost 40% from the expected IPO price. Long-term Slack is an excellent technology company that investors should keep an eye.

An Israeli Technology Company is Driving the ‘Gig Economy’

Fiverr International (NASDAQ: FVRR) operates an online platforms that connects freelancers with companies and small business looking for part-time labor. Fiverr’s platform includes 8 verticals and more than 200 categories, including digital marketing, graphic design, writing, technology and business.Fiverr reported sales of about $100 million in the last 12 months. With a market cap of $1 billion, Fiverr’s price-to-sales ratio is 10. That is a premium to the S&P 500’s 2.2 but much cheaper than Slack.

Shares of Fiverr began trading on the NASDAQ on June 13. Shares are off to a slow start falling 30%. But long-term I am expecting to see lots of sales growth and I like the valuation.

This Discount Grocer is Selling ‘Extreme Value’

Grocery Outlet Holding Corp (NASDAQ: GO) is headquartered in Emery, California and operates a chain of grocery stores in the US. At the end of 2018 it operates a total of 316 stores.This company is interesting because of its business model. In an industry where food prices keep rising Grocery Outlet offers has branded itself as an ‘extreme value” grocer.

Grocery Outlet has a market cap of $2.6 billion. With sales of $2.5 billion in 2018, its price-to-sales ratio is the lowest of the group at just 1. While I don’t see mega sales growth happening here, for ‘value investors’, this is a compelling stock.

Grocery Outlet began trading on the NASDAQ exchange on June 20. Shares are up 5% since then. Take a look below.

Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading.
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