Notes

Candygram August 10 2020 – The Zillow of China

Last Week Last week was filled with more out-sized IPO gains from BigCommerce (BIGC), Oak Street Health (OSH), Acutus Medical (AFIB) and to a lesser extent Rocket Companies (RKT). For us Rocket was the real winner in our portfolio since it was priced low and opened quietly. It’s a rare chance to buy a substantial…

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Candygram August 3 2020 – BigCommerce Rocket and Rackspace

Last week our focus deal, Vital Farms (VITL) priced way above the range at $22 and settled in around $35 on Friday. It surged another few points yesterday to $42. We sold half above $40 and hold the balance. No matter what happens in November we’ll want eggs and butter. This week starts off with…

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Candygram – July 27 2020 Rackspace and Vital Farms

The IPO market continues the strong summer momentum this week with deals including Vertex (VERX) and Vital Farms (VITL). There are a total of nine deals on the calendar this week (two have not set a date for pricing yet but intend to try for this week.) In addition firms are setting terms and going…

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NKarta is an intriguing play on CAR NK cancer treatment

As a general rule we avoid individual cancer drugs, particularly those in the early stages of development. One of reasons is that they are often new drugs to be “in combination” with existing very expensive therapies. The benefits are often limited and apply to small subset of the cancer patient population. Although these have value,…

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Is it too late to squeeze Lemonade?

Demand for the Lemonade (LMND) IPO has been very strong. The company increased the price range from $23-26 to $26-28 but experienced IPO investors know they will be leaving money on the table and the shares are likely to open up sharply higher from the IPO price. Lemonade also fits into a broad theme of…

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Agora provides software infrastructure for real-time voice, video and chat

The benefits of having a cloud-based API for complex voice and video interaction are well established. Twilio (TWLO) is the market leader here. Twilio started on the text and voice side and then moved to support more video and (with the acquisition of SendGrid) email. Agora (NASDAQ: API) is scheduled to go price their IPO…

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ZoomInfo Technologies

ZoomInfo (ZI) is scheduled to price tonight and trade tomorrow with a higher range now of $19 – $20. As we indicated in the Candygram earlier this week this is already a “hot deal” according to equity capital markets. ZoomInfo provides the data organizations need to do B2B marketing. Specifically company titles, emails, and other…

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Online Betting with GAN

This week we finally have an interesting IPO (of sorts) with GAN Limited (GAN on the NASDAQ). Since they are listed in London on the AIM market some capital markets services are treating this more like a secondary offering. However there’s a roadshow, underwriters and a book-building process so we’re treating it like an IPO….

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Broken Candy: Arlo Technologies

Arlo Investment Case Summary Arlo Technology (ARLO) is a maker of connected cameras and related software that was spun out of NETGEAR (NTGR) with an IPO on August 2, 2018 at $16/share. Shares traded higher immediately following the IPO and reached $23 before starting their steady decline to the current $2.15. There are two main…

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Candygram Highlights April 2020

Despite a slow/no-go IPO market we’ve had some companies brave the markets and price very successful deals. Here are some highlights from our weekly IPO Candygram. We also started compiling some things we find helpful like our IPO Candy 2019 yearbook which we will be doing again this year but releasing quarterly so it’s more…

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