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Don’t miss these red flags for IPOs

Thursday, October 10, 2013 - 02:35

Burned by Zynga and Groupon? Here’s how to avoid losing money on Twitter, King and other upcoming IPOs.

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Everywhere you look IPO fever is spreading with Twitter hill and king candy cresting but wait. You've been burned on Zynga and Groupon you don't FaceBook before it recovered. So what red flags should you look for this time. Yes Francis gaskins -- IPO desktop dot com. He correctly valued FaceBook at eighteen dollars when others at 48. At eighteen dollars is -- FaceBook bottom nearly four months after the IPO. Is red flag number one. Declining revenue growth. That's what worried him with FaceBook. -- -- Ahead a billion. Users and you were very excited about certain. There I think is Cynthia top line revenue growth was increasing at a quarter to quarter basis. And the operating properly swears it will close art -- what went public. And and a bit closer to indications that did you lose -- are priced. Red flag number two. No profits and little hope for growth. Example fast growing Google dominates the market for providing Internet access on planes. It's -- -- 38%. Two months after it debuted but has since bounced back. A company that -- any of the market will be making money and it was reflect the Google had a large market share and was still losing money. Red -- number three. Dependence on few revenue sources example Zynga the social game maker fell nearly 80%. Eleven months after its debut at products based on what you were -- -- a good system grown. And -- -- Replied number four -- cultural Morningstar analyst Jim crap. Private equity selling the IPO takes Caesars Entertainment sees as a lot private investors to sell out 19% of the company after went public. Those are made -- that on day one saw their shares dropped 70% before they bottom beware -- says because the Smart money. Is good at timing exits. As for Twitter gaskins says it's apply to thirteen billion dollar market valuation. Election because its revenues are growing at a faster rate than FaceBook and Linkedin. And has a strong brand and rising profit margins his only concern is -- declining growth rate in the number of users. Concerning hopes Twitter wool dress on its Roche.

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Don’t miss these red flags for IPOs

Thursday, October 10, 2013 - 02:35