IPOs To Watch With Eric Krull Manager and Founder at Krull Asset Management
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Transcript
00:00 - All right, let's go into what to watch right now.
00:02 I know you have some charts here
00:04 that we can take a look at.
00:05 Looks like Next Tracker, Samsara and Uber Technology.
00:10 Let's get into some of these.
00:11 - Yeah, let's talk about Next Tracker.
00:13 So here's their stock on a weekly basis.
00:15 And we talk about the different phases
00:18 in the life cycle of a stock.
00:20 This one is interesting in that,
00:22 since it came out, it's still in the IPO advanced phase.
00:26 And it's been choppy.
00:28 The graph shows that it's gone all the way from 30
00:31 to as high as 46 and now it's back around 42.
00:34 So a 10% weekly move is not out of the question
00:39 for this stock.
00:40 So it's a little bit choppy and it's moved up.
00:43 And let's face it, the last four or five weeks
00:46 of this market have not been good.
00:48 It had one really bad week two weeks ago,
00:51 but it's bounced back nicely.
00:52 So that's a stock that's still in the IPO advanced phase.
00:56 Samsara, it had a very short IPO advanced,
00:59 like three, four weeks.
01:01 And then it came down and like 91% of all IPOs
01:04 undercut its day one low and really undercut it.
01:07 Then it's formed a nice double bottom base there.
01:11 And you can see that it's coming up the right side
01:14 and it's reached the old high.
01:17 We call that the turbulent zone
01:18 and it's corrected from there.
01:20 So what I like about Samsara
01:22 and they work on the internet of things type of devices
01:25 is that look at how the volume has increased
01:27 this year in 2023.
01:29 And as it came up the right side
01:32 and now is forming this new base.
01:34 And I would be looking for this to break out above 30
01:38 and heavy volume before I'd be interested.
01:40 But right now it's formed a great due diligence phase
01:44 and went all the way up to the old turbulent zone
01:47 and forming a nice space here.
01:49 So we like to see that.
01:51 - All right.
01:52 Oh, go ahead.
01:53 - And then Uber, it's been around a while, right?
01:55 I mean, believe it or not,
01:56 it's been around about four years now.
01:58 So it's not a recent IPO,
02:00 but it's new enough for us to still watch it.
02:03 It had a short IPO advance.
02:05 And again, really undercut his day one low
02:07 and look at that big drop during the COVID crash.
02:11 And then it came back strong.
02:13 And then when the bear market hit beginning like 2021,
02:17 it came down again, formed another big deep base.
02:21 So I look at this as, and it's a little bit odd looking,
02:24 but I would say this is in a due diligence phase
02:27 and it's off the bottom.
02:28 It's formed its first mature base off the bottom and rising.
02:32 So I think it's in the institutional advanced phase
02:34 or beginning of it.
02:35 It still has to get through the turbulence of the past,
02:38 but to me, this is a stock that they have earnings now,
02:43 positive cashflow and they're maturing.
02:46 And so I look at this one as one of the IPOs of recent times
02:50 that is moving on to maybe the institutional advanced phase.