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Snapchat IPO 10 times oversubscribed

Snapchat, you live by the sword you die by the sword

The forthcoming IPO for Snap, the parent company of Snapchat, has received some mixed press over the last few weeks. The shares will officially start trading on Thursday and after initially reducing its expected pricing arrange to between $14 and $16, sources close to the company have revealed the price will actually be $17. So, what does this say about this much awaited IPO, what can we expect when trading starts on Thursday?

Company raises $3.4 billion

The parent company will raise $3.4 billion with the sale of 200 million shares although, as has been mentioned in the press, the shares will have limited voting rights. This values the group as a whole at around $24 billion and it is believed that the IPO was 10 times oversubscribed. When you bear in mind that the IPO market in 2016 was negligible it is perhaps no surprise to see investors jumping aboard this latest technology bandwagon. Continue reading “Snapchat IPO 10 times oversubscribed”

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Sir Philip Green in BHS pension fund bailout

Sir Philip Green in BHS pension fund bailout

It has been a very controversial subject but today Sir Philip Green confirmed that he will pay £363 million to settle the BHS pension scandal. Those who follow the financial markets will be well aware that Sir Philip Green sold his BHS stores group for 1 pound back in 2015 to a former bankrupt only to see the business fail last year. The collapse of the UK retail chain left a massive gap in the BHS employee pension scheme with many politicians hounding Sir Philip Green to cover the shortfall.

Picking up the tab

Sir Philip Green and his wife are said to be worth in excess of £3 billion so a £363 million payment will not make a major difference to their lifestyle. This has been a very interesting saga because the pension fund was sold with the business and suffered when the business failed under the new owners. There were signs of a shortfall in the pension fund in the years prior to the sale but some in the business arena are unsure why Sir Philip Green has been made the scapegoat and effectively forced to pay £363 million out of his own pocket. Continue reading “Sir Philip Green in BHS pension fund bailout”

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Can you teach an old company new tricks?

Big, powerful and influential companies attract enemies

If we look back over the years the likes of Microsoft were the dominant force in the computer market and indeed tried to dominate the search engine industry. This giant of a company had the reputation, the finance but for some reason it has been left wanting in this new world of technology. This does beg the question, can you teach an old company new tricks?

Too big to fail

The term “too big to fail” was coined in the last major economic downturn brought on by the collapse of the US mortgage market. In many ways this term relates to the collapse of Lehman Bros which many thought was a company quite literally “too big to fail”. There are obviously reasons why the company was pushed to the brink of collapse only to see potential rescues fall by the wayside. However, it does beg the question is any company really too big to fail? Continue reading “Can you teach an old company new tricks?”

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LinkedIn to remain standalone for now under Microsoft

LinkedIn to remain standalone for now under Microsoft

When Microsoft shelled out $26 billion on the acquisition of professional networking website LinkedIn many people thought the price was way too expensive. This is a company which was struggling when Microsoft stepped forward amid concerns that growth had peaked and competition was having an impact. However, Amy Hood, executive vice president and chief financial officer of Microsoft Corporation, has some ambitious plans for the company.

Eventual integration into Microsoft

Interestingly, Microsoft seems to be more focused on growing the topline revenue and building business streams for the LinkedIn acquisition rather than the process of integrating into Microsoft. There is no mention of driving profitability, no mention of streamlining the cost base but just a 100% focus on driving revenue growth. The idea is that as revenue growth increases then eventually profits will follow as the company’s profile and activity rise. Continue reading “LinkedIn to remain standalone for now under Microsoft”

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Lionel Richie gives backing to health care app

Google announces groundbreaking deal with HTC

While Heal is not the first company to use mobile phone apps in the healthcare industry there are high hopes for this start-up business. It has already attracted an array of high profile investors including the likes of Lionel Richie, Paul Jacobs, Thomas Tull and Rish Tandon the former manager of Amazon’s mobile phone apps business. This is an impressive lineup but what does Heal actually do? Can it make a big difference to the healthcare industry?

Funding

It is very interesting to see the company has already raised $55 million although it has to be said that healthcare is currently a hot topic in the US. The business is the brainchild of Dr Renee Dua and husband Nick Desai who had their “eureka moment” waiting seven hours for a doctor to treat their newborn son in an emergency room. The very fact it has gone from an interesting idea to a business which has now raised $55 million would seem to indicate there is something in this. Continue reading “Lionel Richie gives backing to health care app”

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Celebs targeting California marijuana market

Marijuana stocks benefiting from regulatory changes

Celebrities such as Willie Nelson, the children of reggae legend Bob Marley and comedian Whoopi Goldberg are just a small selection of celebrities targeting the California marijuana market. Laws have recently been passed in California which will allow recreational use of marijuana although there will be strict regulations and those operating in the marketplace will need a licence. It is believed that the first licences for recreational use will be delivered in 2018 and already celebrities are jockeying for position.

Medical marijuana in California

While there is a big debate as to whether marijuana should be legalised are not, California has certainly jumped the gun with marijuana for medical use already legalised. There are an array of medical conditions which are said to benefit from the calming influence of marijuana although some argue that it does influence brain patterns and can bring on depression and other mental health issues. A number of celebrities are looking to partner with approved California growers who are currently operating in the medical market but able to dispense their products to the public. This would effectively give many companies a jump on their competitors when the free for all begins in 2018. Continue reading “Celebs targeting California marijuana market”

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First to market is not always the most successful

Apple banking on transformational 5G

The Internet has brought us an array of new technologies and new companies in which to invest. Many of these technologies are groundbreaking and while sometimes they can take a little time to become “mass-market” some of them are game changers. Unfortunately, history also shows us that first to market is not always the more successful but can lead the way for others in the future.

MySpace and social media

MySpace came from nowhere to become the leading light in the world of social media and a game changer for the Internet. In fact such was the company’s potential that News Corporation paid $580 million for the company back in July 2005. Between 2005 and 2009 visitor numbers to MySpace beat those of Google and it was the most visited website in the United States of America. It was only in April 2008 that the company was overtaken by Facebook but this prompted the decline of the once leading light of the social media world. Continue reading “First to market is not always the most successful”

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Is it sensible to buy stock on the dips?

Stock markets

There is a very long and very interesting post on the forum which covers the strategy of “buying stock on the dips” in great detail. This particular strategy is not new, is something many people have looked at and while it does have its advantages and disadvantages, it can be lucrative going forward. So, why is it sensible to buy stock on the dips?

Over exuberance is everywhere

On the upside and the downside over exuberance in the stock market is there for all to see and a very easy trap to fall into. We can all remember stocks which have made positive announcements which have seen the share price pushed to new highs which look a little “overstretched” based on what has been announced. This “over exuberance” cannot last forever and at some point the profit takers will come in and the stock will “cool”. Continue reading “Is it sensible to buy stock on the dips?”

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Shark Tank powers through $100 million investment barrier

Shark Tank powers through $100 million investment barrier

Shark Tank, the US version of Dragon’s Den, recently hit a historic landmark when the last episode took the total investment by the Shark Tank entrepreneurs to more than $100 million. It may have taken eight seasons and more than 350 on-screen deals but this is a significant landmark for any entrepreneur business. Surprisingly, the program was initially something of a flop although when momentum began to build the audience began to flock. So, what can we ascertain about the world of entrepreneurial reality TV from the success of Shark Tank?

Not all deals are sealed

In what now seems to be par for the course for reality TV business program such as Dragon’s Den and Shark Tank many will be surprised to learn that only around 50% of the deals struck on air are actually sealed. They can fall apart for many different reasons such as due diligence, changes in the detail or surprisingly those entering the Shark Tank can simply walk away after the programme has been recorded. Many people were under the misconception that all deals agreed on TV were actually entered into when the cameras stopped rolling. Continue reading “Shark Tank powers through $100 million investment barrier”

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Why Bitcoin just hit an all-time high

More countries looking to ban cryptocurrencies

The idea of a digital currency is not new but until the relevant regulatory structure is in place many seasoned investors and institutions are wary. However, Bitcoin is one such digital currency which has been in vogue over the last few years and today hit an all-time high of $1206.60 per single “coin”. So, why is there so much interest in Bitcoin and is this the start of something special?

Speculation

There is intense speculation that the Securities and Exchange Commission (SEC) could authorise the creation of the world’s first Bitcoin exchange traded fund. This would be a phenomenal move for the digital currency which has been around for some time but is not yet seen as mainstream. The Winklevoss Bitcoin Trust is one of three companies which have put proposals to the SEC which is expected to announce its decision on 11 March. Continue reading “Why Bitcoin just hit an all-time high”