cfoo: "Why is a company with 18m revenue getting 400million dollar offers? Is it just the pure potential for growth?"
Pretty much.
The global market that Freelancer is in is potentially *huge*. If they can be the dominant player long term then there is a tonne of money to be made.
However IMHO it is an extremely risky play right now.
They compete against many companies solely focused on lucrative niches - companies such as DesignCrowd, 99Designs. You should look carefully at the pricing models that DC and 99Designs have chosen vs the lowest-bidder model that Freelancer uses. Consider the impact on margins, the user experience of a site customised for a particular niche, as well as the long term implications of new entrances chipping away category by category.
They also compete against other all-markets players such as oDesk -- which most folks who have used both oDesk & Freelancer seem to say has the better UI.
I don't normally comment on companies I don't hold shares in but IMHO FLN is one that you wanted the pop on (congrats to anyone who got an allocation) but is a crazy investment to get into right now -- it's going to open >$2 which makes it a >$800m cap company with $18m of revenues and barely $0.5m NPAT.
I'd really hate to see small investors burnt on this.
tl;dr:
If you got in at 50c, hold it for a while and see how high it can go due to the tight liquidity.
If you don't already own it, don't get in.
- Forums
- IPOs
- freelancer ipo
cfoo: "Why is a company with 18m revenue getting 400million...
-
- There are more pages in this discussion • 26 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add FLN (ASX) to my watchlist
(20min delay)
|
|||||
Last
18.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $81.16M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 25000 | 18.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
20.0¢ | 68815 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 25000 | 0.185 |
2 | 127521 | 0.180 |
3 | 56367 | 0.170 |
2 | 58025 | 0.165 |
1 | 2819 | 0.160 |
Price($) | Vol. | No. |
---|---|---|
0.200 | 68815 | 2 |
0.205 | 441 | 1 |
0.210 | 225432 | 6 |
0.220 | 15056 | 2 |
0.225 | 13000 | 1 |
Last trade - 16.12pm 28/06/2024 (20 minute delay) ? |
Featured News
FLN (ASX) Chart |
Day chart unavailable
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
SPONSORED BY The Market Online