I like your analysis. Do you envisage a counter more superior...

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Aviza2913

964 Posts.

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17/07/21

20:47

Post #: 54576959
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Originally posted by jaluma: ↑

It happens to a lot of IPO’s.
They list and it’s a liquidity event for a lot of long term shareholders and those that participated in the float.
If it doesn’t get well supported in the first 6 months, then the marginal sellers outweigh the marginal buyers and the price drops with no real levels of support.
Last year they rushed a few IPO’s to market on the back of COVID growth.
This saw a few key IPO’s getting listed late November / early December, horrible time to list at end of year!!
YouFoodz was one of them and started falling, it didn’t find much support from Fund Managers.
This was pretty similar to Marley Spoon when they listed here as well, maybe our market doesn’t understand D2C food brands.
The fall accelerated when YFZ flagged it was going to miss prospectus forecasts, naturally people headed for the exits.
A poor IPO doesn’t make it a bad business.
Hello Fresh realize that, they know they are getting a bargain, especially with all the product development YFZ do. HFG only really come up with recipes and source produce. YFZ has snacks, drinks and meals.
Now it just depends whether someone else wants a leading D2C brand with established next day delivery network across 70% of our population and $60m in tax losses to boot. Would be a powerful tool in the hands of many businesses, including HFG.

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I like your analysis. Do you envisage a counter more superior offer is on the way from other potential buyers?

YFZ Price at posting: 91.5¢ Sentiment: Hold Disclosure: Held
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