Hot Shares or Hot Mess? Finding Real IPO Opportunities

Hello, my name's Santasha Nabananga Bamblet. I'm a proud yor

Let's get into it.

She's on the Money, She's on the Money.

Hello, and welcome to She's on the Money. The podcast at Demas defies the world of finance. You can make smart money moves, no finance degree or secret decodering requires. I still want a decodering. Yeah, me too. Actually, I'm beck sired and as always I'm here to ask all the questions you've been too shy to ask or don't actually know how to google. I'm not shy to google things. I'm not shy to google things.

I'm trying to show you my Google history. Of course, I'm not shy to look it up, though, I'll look it up. But if you got hold of my phone, if something really bad happened to me, beck and you somehow have a hold of my phone, just wipe.

It for me. I'm going to look at it first. You can look, you can look. I trust you to look at and then and then I'll like nobody else can see. Say for me, how to spell? What does this mean? Like? I just it's a lot. I've got how spelled me the other day? Yet look, I would too, honestly lookle it, like, how do I spell the word that I can't spec? You know how I do that? I voice? Yeah, that's a good idea. Actually that's voice to text. Thank you. It's got me. So today we're

And also you'll sound more like a finance bro if you start talking about IPOs that brunch.

It does sound pretty cool. So lucky for us, we've got Victoria Divine, our financial expert who knows the ins and outs of investing. I do Hello, thank you for having me on my own show. Very grateful to be here, but also grateful you're letting me talk about IPOs. And I was really glad we're talking about it. You really just my arm with this.

Yeah.

You were like what and I was like, Ah, sit down. This is going to be a juicy one, but also one that makes us feel smarter at the same time as going finance isn't that complicated? I feel like so many of these jargon y terms just make us feel overwhelmed, and then when you break them.

Down, you're like, that's not that hard. The finance bros be brown baby browing baby brow in.

So IPOs are actually one of the most common questions we have been getting recently from our listeners.

Yeah. I think it's because lots have been in the media. Yeah, to be more like, what is that? Why is it in the media? What does that mean?

And everyone wants to know if there are a chance of getting in early on the next big thing, right, or if it's more of a gamble, And honestly, there's a bit of both.

Going on.

So today I'm going to break down exactly what IPOs really mean, why companies go public, and what investors need to look out for when those exciting new shares.

Hit the market. Okay, okay, I think it's going to be really fun. I mean, you're not sold yet, not yet, But I actually don't know what it is, and so that's I think my first question will be what actually doesn't mean? Like what is an IPO?

So an IPO means initial public offering, which sounds really boring, but it's essentially like the company's first time on the share market. It's when a private business decides, you know what, we're a pretty good business and we would like to sell shares to the public. And it's often to raise money so that they can grow. But it's not just like a money move. It changes the whole company's structure and their goals because they have a whole heap of

And so that's I'm assuming just based off what you've said, it's kind of their decision. So why do some companies decide to IPO? Is that the right my say? You can say that, yeah, Why does some companies decide to list themselves on the share market? Why to IPO and why to not IPO? To IPO or to not IPO? That is the question, that's the question.

But companies often decide to go, all right, we're going to list on the share market and have an IPO to raise really big funds really quickly, especially if they're like expanding or the company carries some debt that they want to pay off.

But there's also, I guess the flip side.

When you go on the share market and when you decide to list publicly, companies lose a little bit of control, which is why some people are really happy to stay private. And it's one of those things where you know, even if my business has got absolutely massive, I like not having other people tell me what to do. I don't want to have to, you know, talk to shareholders and justify the decisions I make inside my business, so it's not for me, Like going public is a really big shift.

Right? Okay, So in my head, I'm thinking a company that maybe like a little small business, maybe they're getting big enough, they need more money, they need expects maybe they even need like publicity to some extent exactly, and then so they decide to go Yeah, and I think you think She's on the money.

As an example of this throughout this episode is going to really help, right, So, like, let's pretend that I'm thinking about listing. I'm not, but let's pretend I'm thinking about listing, And it's because beck I really want She's on the Money to grow even bigger than it is. And I want to create an app, and like I want to She's on the Money app because you know one.

And we all know this already. One doesn't exist in the market. But it costs hundreds of thousands of dollars to create an app and keep it updated, like it's not for me being completely transparent, it's not feasible for me to do that on my own. So maybe in order to.

Do that and actually create this app that I want to that in the back of my mind, I go, if I create this app that She's on the Money, community will like triple and we'll, you know, gain a whole heap more revenue. I'm going to list, which means I'm going to do what's called an IPO, which is the initial public offering, and that's the first time I'm issuing shares. And everyone wants to get in on a good thing. Like beck I think you love shees on the money, so you might go fire out Brussels sprout,

Does that make sense? Y?

Solutally, you and I know She's on the money and it's a little bit niche like it's a finance podcast. Not many people know about it, so you can see the value. But if I went to Joe Blow down the street and said, hey, would you buy She's on the Money shares, Joe Blow might be like, I don't even know who She's on the Money is, and then you'd be like, oh, it's Victoria to buyne and then they'd be like, I've literally never heard of this person, but you should buy shares.

It's got so much potential.

He's going to go I don't see the value so often an IPO, and I mean it can go one of two ways. So an IPO often they'll release shares and then over time they increase in value and you've got a good deal when you got in at the start, or there was a whole heap of market hype and you got in at the start and then your share price started to drop. So that's why we're talking about it kind of being a risk at the same time as being a really good opportunity if you know what.

You're talking about. Okay, this actually makes a lot of sense. I just I guess I wonder if you're about to go public, or if a company's about to go public and you've kind of had your r on it, where like what do you actually find out? Like where is this information? Can you just like google that company and then you can you can.

There will often be a lot of like PR releases and media releases. You'll also learn about it from the ASEX. So the ASEX is the Australian Stock Exchange and their website has a whole heap of information. Like I'm telling you right now, if a company is going to go through an IPO process, they are jumping up and down and trying to let everybody know about it because everybody wants a good IPO.

Right.

It's kind of like a launch party. I see it as a launch party, right, Like I want to have a launch party for my really fancy business. If no one shows up, low key embarrassing, you want to write coy h Yes, yes, we want a Corey Worthington launch. So we want everyone to want yellow sunglasses. Yeah, and we want everyone to buy because that gives the rest of the market confidence because if they haven't seen our company, they haven't seen shees on the money, they don't know

Like seeing other people get in on a good thing and then go, oh, hold on, what are they doing that looks good?

So you want to create that sense of fomo with an IPO, like they're going to be jumping up and down about it.

Yeah, okay, that's good to know. Maybe I'll have a browse because I assume that even if you're not fully looking at one place, I don't know where to start, but I could just kind of have a brows and then see what's absolutely And like your favorite companies, if they're planning on launching, they will start talking about it and prepping for it because you have to change your entire business structure and like the way you report things

Launch okay, actually sounds like it's actually a bit it's a massive process. Like as I said, it can take, you know, eighteen months just to prep a company to go into their IPO because they're launching. And obviously, if you're going to buy a share in my company, beck, you're going to go, well, I want to make sure that you've got everything organized. I'm not going to buy

Because if you ask me, while she's on the money's work, I'll be like.

One million dollars, one billion dollars, Like I'm going to tell you.

It's worth heaps.

But when need to actually hire someone called an underwriter. You might not have heard of the term underwriter, but an underwriter assesses risk. So insurance companies usually have them, and these are the people that if you go through the insurance process and say, oh, the I really want

An order to just doesn't come in and says oh, yeah, i'll do you solid and like we'll just do this for free.

Yeah.

Like underwriters are very very educated, Like they have to go through so much university and to be really technical. They're not just looking at that prospectus document. They're looking at, you know, the market. They're looking at what the economic circumstances are. They're looking at, you know, the demand for the product into the future. They'll do a whole like swat analysis. They'll look at your strengths, your weaknesses, your opportunities,

If that makes sense that it's a lot. I would be too fragile for that process.

I love reading the documents, though, Beck it's so I don't know, it's like it's pervy because you get all the information about a company that's previously been private.

Like don't you want to Like, I'm so pervy.

I want to know what other people are earning and spending and like what debt do they carry?

Why did they take on their I need to know. Just a bit of light reading. Yeah, just a grab a prospective to a glass of wine, and you got a good Friday night. Because I was like heaven or for you and hell for me. Maybe maybe I'll read it to you, like you can sit on the couch with your little soda water and I'll be like, get this and you'll be like, I don't care. Maybe a bedtime story.

Yeah, maybe we can have Netflix on and I'll read it while we watch it. Actually that I'm doing the work so that I can then explain it to you and you'll be like I didn't even need to read it because you did the hard way exactly.

I appreciate that You're welcome. Don't say I don't do anything for you. So just in case someone's listening to this and they're like, this is a fool proof way to make money fast, I'm assuming there's a bit more to it, is that, right? Yeah?

As I said before, like it could be a really really good thing, or it could be a flop.

Like we've all seen launch parties where it's like, oh, that's nice, they're finally launching, and that's terrible, Like you know what I mean, Like it's like a launch right, And I've said this literally in this episode before, So what could happen is like so much hype, so much marketing, the cover of the book so incredible, and then you get the book and you're like this is terribly written, Like this is just not for me. Like finally the launch party happens. You brought the book Beck, you were

No, So just because a company goes public doesn't mean it's gonna like skyrocket, Like you do your initial launch, which is the IPO, But then you've got to kind of sustain the business. You can't just sell shares for an inflated amount and then expect the market to not see through that if it's a sham, if that makes sense. So in fact, some IPOs flop literally right after they're listed. Like any investment, it carries risk, and we need to be on top of that risk and kind of weigh it up.

Right.

So, and this goes back to she's on the money, and it's not because I think the business is good. It's just a good example. You know, she's on the money so deeply, right, So, like you know.

The team, you know how it works.

You have this prime position, like you're kind of in the like the director's box of being like I actually know their ethics, I actually know who works for them, how they even edit their podcasts. I know, you know in the pipeline, like you know what's gone on in twenty twenty five and probably twenty twenty.

Six, Like you've seen a bitstess plan.

Yeah, so you're like, no, that's pretty solid, Like I'm pretty bought into this, Like I know that's pretty good. But not everyone has that director's seat right, And sometimes companies can put out this shiny version and you might feel like you've had a director's seat, but it was a really curated version. Another example is kind of like brand new restaurant opening night, so excited it's just opened in your area. Beck, Like, let's imagine pizza shop down

I love it.

There's long waitlists, so you're like, oh, this is popular.

Good sign love seeing a buzzing environment.

You're so excited, but you're not really sure yet, Like what if you don't like the menu. Some opening nights there's everyone lighting up around the corner, and then the night after they've given emveryone food poisoning. Ah, And then you went and had a really shitty time. The weight stuff were really rude. You know, you were paying forty eight bucks for a margarita pizza. You're like, oh, actually,

I went, I never want to go back there again. Yeah, I had a crap time.

I'd actually prefer to just order Dominoes online and just sit at home, do you know what I mean? Like that is what could happen. So like some are an absolute hit and some are a miss. That might mean that the company has to then go back to scratch and kind of go, all right, we need to have a look at our business model, and maybe they like drop the prices of their pizza, fire someome stuff and hire some kind ones and the whole situation changes and

Yes, does that make sense? Totally makes sense. I imagine if you are in that situation, it's hard to come back from negative. It's from exactly and if an IPO happens, like if a company has an IPO and it flops, deck media love that, yeah, like they want to talk

Do you want to be like, oh, yes, Victoria's launch happened and she sold her shares for sixty dollars per share, and look at that. Overnight they are now it's sixty one dollars. That is solid and consistent ross. We love to see it, no one cares. But if it crashes, you love. Everyone wants to watch juicy, Juicy juicy. We need the juice and I get it. That's why I exist. I love a little bit of drama, but I also

I don't think it's worth it. Oh, do you know what I'll do?

I don't think it's worth it, So I'm going to sell my share at eighty bucks today because I just want to cut my losses, like I want my money back. And so the market starts to see these shares selling, and your share price starts to drop because there's not as much demand for it. And then you see your share price dropping and you go, oh my god, like I bought in at eighty dollars too, Now it's worth seventy Should I just cut my losses and sell right now?

You can't just get excited because it's an IPO and it's super shiny, and they're obviously going to get a whole heap of market press.

They're obviously like the today show wants to interview them, like, you know, it might be a skincare company and they've just done this incredible you know, skincare range and they're finally taking it public.

That's good news story. So you see it and you get in on the hype. But I guess you need to understand that the hype is just hype and you need to analyze it yourself to make sure it's a good decision so that it doesn't end up being a bad money loss. You know, yes, So after the break, we're going to go to a quick breakback because I've been talking about IPOs and I need to come down

So stick around you don't want to miss this.

Welcome back everyone. Before the break, you promise us all the hot tips for investing in IPOs. So where should we start? Do you get it now? Though? Like before we go, like IPOs, do they feel as overwhelming as they did at the start of the episode, Because you're, like I don't know what an IPO And I'm like, I am glad you are here. Then yeah, totally. And I just like when you see the abbreviation of anything, it's like that is scary. I don't want to know. Yeah, but it really is making sense.

But also like it's just the first time a share is available on the market. Yeah, and I think a lot of people again the finance bros be browing. Investing in IPOs is my passion. Okay, suit down, bru. They got me, good, they got you. But like also that's why we don't like finance bros.

That's true. So let's go back to basics.

I want you to understand the business model. If it comes to you know, understanding I guess whether you should invest in a company's IPO or not. We really want to just like strip it back and have a look at the business model. How does the company make money, what does it sell? What does the.

Company actually do, whether it's in a growth industry or not. I want to understand a solid business model is going to have long term potential as opposed to something clearly short term. And to me, that's essential before considering an IPO investment. Why Beck, Because I am not the type of person who buys like penny stocks. I'm not the type of person who is in it to get rich quick.

That is not my game. I'm a long term investor. So if you've got a short term business model, how's that going to fit into your long term portfolio? Like, how are you going to hold that for ten plus years? Like if you wouldn't hold a share for more than ten years, Beck, you should not hold it for ten minutes. Well, but like you shouldn't. You shouldn't because why are we buying it? Because if you're buying it for a short period of time, you are probably just buying it because

Okay?

Cool if I zoom out and we always say went intown, zoom ount, but zoom out and look at the bigger picture, and IPO is shiny. It's really exciting. I love it, and I get so in aviod like I am going to read that prospectus. I get it, but like I'm reading it because I think and I'm hoping that I'll get into a good thing at the start and be able to ride the wave for a ten year plus

That's not who I am.

Back to the prospectus, though I can't talk about this enough. It's going to sound really unsexy, and I don't think I sold you on it before I told you could watch Netflix. But it's really important if you're actually going to make the investment to read the prospectus Okay.

That document.

It's going to reveal, usually in quite simple terms, financials, the business risk, what their future plans are going to look like. What I would be doing is spending some time here to understand exactly why you're buying into it and questioning yourself the entire time being like, am I just buying into this ipeo because it sounds shiny? Am I buying into it because another podcast talked about it?

Okay, we're going to critically think about this, and now I just have a quick question. You were allowed many questions and they do not have to be quick, Thank you. I don't know, I'm so obsessed with the actual logistics of this. But the prospectus is of publicly else Yes, and it's on would you find ax or on the website of the Bony both.

We're going to spam it everywhere because we want everybody to read our perspectives and think this company is lit I'm gonna invest, So like the ax is going to list their prospectives, but also the company is going to be like, hey, did you see this?

Did you see my respective? They're going to put it on their website. Like this isn't a gate keeping kind of document where they're like, oh, I hope no one reads this. Like they're pushing their best foot forward in this document. It's kind of like it's kind of like a pitch. Ye, Like it's not a pitch, but like it's kind of like them saying, hey, here's why we're listing. Because if you're listening for no good reason, why are

Like no, no, no, no, anyone will be able to read it. I mean you might not fully comprehend the balance sheets in it, and you might be like, oh, I don't really understand what this means. That's why you should have done my investing masterclass, because I would have taught you exactly how to read a business P and L and you know, a cash flow statement and all of that. But that's okay, but you're going to have a look at it, and there will be usually summaries of what.

Each of those things mean, like, oh, great, this cash.

Flow statement shows that this business has been functioning with positive cash flow for the last four years or whatever it means. So I can going to outline it, whether it outlines all of the risks maybe like sometimes, maybe, yes, sometimes or maybe. Know that's where you have to put your like critical analysis hat on and go hold on. Like let's zoom out. Let's say it's like a skin care brand. You need to zoom out and be like, oh, is this an oversight traded market? Like how well can

I see very cheeky, isn't it?

Well?

Cheeky bed Like that's the game. Yeah, that's the name of the game. Okay, So I've read the prospectus and I know what I'm doing. Yep, How do I now know that the price that's been set is a good price.

It's a hard question to answer, but picture this right, maybe like you're shopping for a bag beck, so you're like in the market and you're like, A really want a nice backpack, like I want it to fit this in that right, But then you start looking into it and there's one on TikTok and it's probably the same quality, but every single TikToker that you follow is currently using this bag, and like you start to feel influenced by them and decide, I think I want that one. But

You like, hold up, Like the buzz was.

There and I had hoped for a different price, but the company that owns the pizza shop was like, oh my god, there are so many people interested in our pizza shop. We can charge more for the pizzas. That's why they said their price really high. You were pissed off about it, but the company saw that as an opportunity because there was so much buzz, and they assumed that because the demand was there, they could absolutely charge more. But that doesn't mean forty eight dollars for a margarita

Really happy with it. To see if you're now we're going to get a little bit technical. Sure, if you're listening to this, honestly, you might want to listen back to this a couple of times. And this is not because I'm being super technical. It's just because like we're going to talk about ratios, and sometimes that text a little bit like see not in a contents anyway, Absolutely not.

But if you've never talked about this, why would you be like, Oh, yes, Victoria, the price to earnings ratio absolutely makes sense in this situation. But to see if you're paying I guess the hype tax, you're going to check the IPO's price to earnings ratio okay, or it's price to sales ratio compared to similar companies in the

I see.

On the flip side, if you get a low PE ratio, that's where the ratio is lower than similar shares in the same industry, it might mean that the investors believe that the stock earning is going to decrease, like they don't really trust it. They're like, oh, whatever, like this isn't like a good pizza shop. I'm not that interested in buying stock. But on the flip side, it could also mean that the stock is undervalued and it's a really good opportunity for you. So PE ratio, like, it's

Dollars and then divide it by how much money you would earn per share. So the E is the earnings per share, so the company is profit divided by the number of shares that exist. So it's basically saying that.

You would how much money you're you going to make from the share, Like if they have a dividend that they would pay out, what is that and those figures you won't have to calculate your earnings per share because that will be public knowledge. So you just take the stock price and divide it by the earnings per share and that will give you a PE ratio.

Okay, now give me five years to absorb that. I told you I want to listen to it a couple of times. And it's not because I'm, you know, being

These are things and like back to you, you know how we're talking at the start, You're like, oh, you can google things, like you could literally google what is a good price to earnings ratio for the food and beverage industry?

Like I can go from there. If we're talking about the pizza shop.

Right, you could be like, well, I've calculated the pe ratio, but I don't know how to use it. Now you could look at the actual industry and then you could go and look at, like, you know, the pizza shop down the road and go, well, what is their pea ratio because they do a boom in trade? Like is that an overvalued stock? Is it undervalued? Is it like on market?

Like should I be paying more for this ipo or for this first time that the brand new pizza shop is offering pizza.

Should I be buying in with them? Or am I going to look over it to this other pizza shop? Because if you found that they had like a peer ratio of ten, which is a low pee ratio, you might be like, well, is that because the pizza industry is undervaluing a company that's been around for a long time, or is this an opportunity there? Or if it's overvalued, is that like the most popular pizza shop in town?

Not no, no, You're going to take how much they are going to sell their share for. Okay.

So that's a very easy number to find. So you're going to take their share price and then divide it by the earnings per share, which is how much you would make from owning that share.

Okay. And that's available on that's all available online, and it should be in the perspectives. If it's not in the prospectus, you would be able to find that information via the ASX. Great, thank you. And so price to earnings and now priced to sales is different, okay. So price to sales ratios is nice. So we've got like price to earning, so we're like, what are they charging?

But a price to sales ratio is essentially a valuation ratio that compares a company's like share price to its income, So like.

Are they actually making enough money?

Like not just what they're paying you, which we look at in the price to earnings, but like how much revenue is coming into this business?

And it's usually an.

Indicator of the value that the financial markets or like the investing market as a whole, has placed on each dollar of a company's sales or revenue. So I guess TLDR because like I don't want to like dive too deep into it, but we can do a whole ratios podcast at some point. But the price to sales ratio shows how much investors are willing to pay per stock, Okay, like how much they will to pay per dollar of

So the PS ratio PS I love you.

But PS ratio is calculated by dividing the stock price by the underlying companies sales per share, which again will be accessible. You don't need to do all of these calculations in the background to then get this calculation. This information is available, but you do have to kind of plug it in. And do you know what you can do? You can google price to sales ratio calculator on one will come up and you can just plug it in and it will do it for you so that you know that it's correct.

Okay, right, Like lots.

Of investing platforms have this for free. But back to what I was saying before, because we compared the low PE ratio to a high PE ratio, a low price to sales ratio could imply that, like, shares are currently being undervalued, and so like that why you know how I said, I always do the two together. Obviously, if the PE ratio and the price to earnings ratio is saying, oh, this stock's undervalued, but then my price to sales ratio is saying it's overvalued, we need to.

Do some more research, beck.

We kind of want them to make sense together. So a low ratio BECK could essentially imply that the share is undervalued and it might be a goodbye. While a ratio that's higher than average, it could actually show you that the stock is currently being overvalued, and then we're going to look at it again in context. We never

Yeah, totally. That felt extremely complex to me.

But hopefully that but if we sat down and did it a couple of times, Like the price to earnings ratio is just taking two numbers dividing them by that totally ave.

Reages twenty to twenty five.

And then you've got a price to sales ratio and that's going to tell you what a share is trading at per dollar. Like, and they make sense when we start to really break them down again, the bros have browed too hard and made us think that it is really complex, but their jobs they're just still a little boys.

Well that's very true. It always can do it exactly. We're on the same pay we have the same algorithm. It we do it seems okay. So beyond the numbers, is there anything else you look at to get a read on like the company? What clues are they feel in my portfolio? Cute? They got to look cute.

They've got to look cute, Like I don't want to yea, yeah, if I'm gonna like buy into a stock like and you've got ugly logo, absolutely not no. So I think obviously beyond the aesthetics, which absolutely play no role in this, I'm going to look at their leadership team. Okay, creepy little store cart and you should be too, right, So, like, I want to look at their leadership team and what their track record is you can go down an absolute rabbit hole.

But what you're going to do is have a look at like who's the CEO? Who has that CEO led? Before you can look.

At their LinkedIn? Do you know how many people I look at on LinkedIn? Like, I have no shame? You know how it sometimes tells you who has seen your profile? Yeah, there will be six million CEOs, six million market analysts who all have Victoria Devine has looked at your profile, and they'll be like, why I'm judging your business?

Yeah, I'm here. I have no shame.

But you're going to look at the track record of a company because if they have a strong record of success, they might be more likely to steer the new company that they're working for in a profitable direction. Sure, and I've done this before, right, Like I was not sure about it ETF that had just launched market. I didn't get in on ipo because like, sometimes I'm just a little bit conservative, like IPOs are fund I've gotten in on IPOs before.

That makes sense. But sometimes I just like to watch and I like to wait, and I like to see that it does what it says it's going to do, and if it means like Hey, a tiny bit more for that stock.

My plan is to hold it for a really long time. So with that intention, my money should double anyway, right, So, like whether I saved a little bit or not, Like, that's not my problem to me. That's an investment in making sure that I'm making the right decisions for me and my portfolio. But there was an ETF so an exchange traded fund yeah that I was like, Oh, this kind of looks interesting. It was by a good company,

This poor guy's.

LinkedIn, His old assistants LinkedIn, got looked at like everyone who managed him on his manager I was a super creepy stalker. And I regret nothing because that gave me a lot of validation that that was probably an investment that I wanted to get involved in. So like, if the leadership team is new, you can have a look at that.

But also I want to know.

Had I I've gone and done this research beck and found that this guy had never actually constructed an ETF before, he'd never picked shares out.

Why would he know that? Why would he have any experience in ethical investing? Like that would have been a red flag to me that they had just done I guess a tokenistic portfolio that I wasn't probably interested in. But what I found was like he had a background in ethical investing, he had put together ETFs before, he'd actually spoken at international conferences on constructing ethical portfolios. And I was like, this guy, like, I back that. So

Okay, that's super creepy, stalker. We don't mind if people see that we've been on their LinkedIn, Right, you don't mind.

Yeah.

The next thing you want to do is check for insider selling. Okay, So insider activity can I think be quite telling if founders or like early investors are starting to sell really large portions of shares at the initial public offering. To me, that might signal doubt about the company's future performance. Like why is the CEO selling all of their shares.

Once it got listed? Why they scared?

Because often in a company like a company might issue shares to their existing employees. Yeah, so I might go, oh, beg, you've worked for shares on the money. I'm going to give you a few shares as like you know, part of your remuneration package, and you go sweet. They but then we go we're going to go to market, Beck, and you're like, thank god, I've got time to get out, but I'm going to sell my shares the second it gets listed to some unknowing other person.

Yeah, okay, but.

If they're holding onto their shares, or even if the CEO is buying more shares, that could be a really positive sign that it's a good company and the CEA is like, I really believe in this. Yeah, okay, that's doing some creepy stocker things again.

Yes, I love that.

It's market research if it is publicly accessible information, Beck, it's research research.

It's research. I'm great, My great. The other thing, I've got a whole list here. I do apologize.

So we're going to have a look at the company's industry trends and their growth potential. So like investing in IPOs in industries with like really strong long term growth potential, like maybe like renewable energy or like tech can be advantageous. So we're probably gonna want to And this is maybe just personal advice, avoid IPOs in sectors that have been stagnant or like overly trend dependent, as they might actually not have sustainable long term returns. Like I don't want

I'm a little bit you know, wary.

They're not exactly you know, a tech company or renewable energy that's going to positively contribute to our society for a long period of time. Like maybe and I'm not saying that Stanley Cup's had its day. It's like absolutely still a thing, but like maybe a new drink bottle company that's coming in to be their competitor. You're kind of like, oh, but people have already done that, Like do I want to be buying that, Like I can

Right. And obviously we're not talking about Stanley specifically here because they.

Have market share at the moment. It's a new company coming in and you're like, oh, they're iboing, Like oh, I love the Stanley drink cups. That makes sense, But like if Kmart's doing them, is it done now?

Like it's the trend over?

Like I want sustainable long term returns, and then reputation. Reputation is really important, And I mean I have been on the slam multi level marketing companies for a really long time bandwagon, and I'm just going to continue to talk about it. But if you're not googling a company name and the word scam or controversy or cork case, like what are you doing?

Oh?

This information is public knowledge, Beck, Like you can google, for example, money scam, You could google money, cork case, and so much information would come up to me. If I was then going to invest in that company, that might be a red flag that they have so many court cases against them, right, is that free to do? Yes?

Back to it is simple to google, but you just need to know what to google. So when we're looking for reputation, obviously that's not just googling like you know, keywords and scam whatnot. Like that's just me being a little bit spicy. But like we're gonna have a look at like media coverage, like what coverage have they gotten?

Has it been positive? Has it been negative?

Usually now in you know, twenty twenty four, there's reviews everywhere. Having a look at the company's reviews, Like what do their Google reviews say. We're going to also look on their Instagram and their social media because often people will take to Facebook or take to Instagram to vent, like what are the comments sections saying? What are their tagged posts?

We're not looking at what the company is put out on their pretty little grid. We're looking at what have they been tagged in? What hashtags are being used? Like, cause if it's like a pizza company, right, you're going to go to their Instagram. They're gonna have beautiful pictures of the Margarita pizza. They're gonna have beautiful pictures of this happy team. And then you're going to go to tagged and there might be a post from Beck being like,

You're like, oh, that's not what you said you were. So we're going to look at the brand reputation. In a perfect world, you'll also be able to understand employee satisfactions. So websites like glassdoor can really help you understand if the team is there. Also, again publicly accessible information, but we are going a little bit creepys talker. How long

What's going on? Yeah? What's that? Why is everyone leaving after twelve months? What's the average tenure of their leadership team? Specifically, like do they get a new CEO every eighteen months? Like? What's going on here? Red flag?

And then understanding their company's culture and their core values. Is the company run by people who are also associated with a cult?

Good thing? To figure out if it is, I'd probably be concerned. I would be I'd be asking some questions. I would be asking some questions and being like is this for me?

Rolemably not, and then we're obviously going to have a look at the market condition. So this isn't specifically for your industry or your specific share, but like IPOs tend to perform better in stable or bullish market. So remember back to like when I say bullish, do you know what bullish means?

Bullish? I can't remember.

It's aggressive, like going up, like the red flag is like flying, and the bull is running for the red flag.

And the markets are like doing really well, and a bear bears like to hibernate. They like to have a little nap and they're not doing much work.

So a bull market is where it's doing really well and it's growing. In a bear market, it's gone into a little bit of hibernation. It's just chilling, like it's probably going to come back because you know it ebbs and flows.

But in a bullish market, obviously an IPO is going to go better because the market sentiment and people are ready to buy. Whereas in like a period of lull or hibernation.

If I said do you want to buy aniche, You're like no, I might just continue napping, like I'm not that interested, Like I'm seeing everybody else, you know, not buying, so I'm not going to buy? Does that make sense? And then in a volatile market, So in a bear market, new stocks they can experience I guess really dramatic like price rings. They might like launch it a really high price and then go down, but that might not actually be reflective of their value. So I would weigh what

What are you doing? That's like a really dumb decision. You're selling yourself into a period of time where people aren't that confident in investing, let alone investing in new things. Right, you want to do it in a bulls market? Yeah, So I'd be like, why are you doing it in a bear market? To you, potato? And how do we find out if it's a bull or bear? Right now?

So you can just google it, like what's the Australian share market up to at the moment? I do a lot of obviously investing content you can ask me. I'll talk about it, but yeah, I feel like I've yapped on and on and on about this.

So V I think the question on everyone slips remains, Will Shees on the Money ever be the next IPO? Absolutely not, absolutely not, Like I know that you might want us to IPO and it would be really fancy, And I feel like this is not like a mean thing to say, but I feel like sometimes if you are a business owner, ipoing and selling shares can be

I just don't like the idea that I would be responsible for shareholders.

Yeah, Like I like that the buck stops with.

Me and I make the decisions because, like, let's be honest, a lot of the decisions that I make in my business a company would be like, oh, I'm sorry, Like you could increase shareholder profit by not sending your team members on international conference trips. And on the flip side, I'm like, oh, I love that I can have a business that gets to invest in the growth of my team, like and that's not like the values that I hold sometimes don't align with high shareholder return.

Right, Okay, does that make sense? Yeah, and you're allowed. I could do what I want. You can do what you want the free world, including right now. I reckon, let's go do what we want. Let's have a coffee. There's diet coke in the frigid work now. Oh my god, I know Josh hooks us up. So we've got to go get one of those. But I think before I leave you, Obviously with investment, all investments carry risk, we

And also we're trying to make finance fun. And if you want to share that money confidence with your friends, please don't keep it to yourself. We want a bigger, better community. The more people who are financially free.

The better beck, I love that it's so true. V Die coke time, but I got's go bye. The ad buy shared on Cheese on the Money is generally nature and does not consider your individual circumstances. She's on the Money exists purely for educational purposes and should not be relied upon to make an investment or financial decision. If you do choose to buy a financial product, read the PDS TMD and obtain appropriate financial advice tailored towards your needs.