🤑247capital #26 | Upcoming IPO of $ONON🤑
Follow-Up, IPO of the week | $ONON, Tweets of the week ...
Hi Everyone 👋,
Welcome to the #26 issue of 247capital — your weekly source of Investment Research. If you are new, you can join my email list here, or👇🏻
The follow-up to former Issues
Below you´ll find the overview of all bought shares since Issue 1 and the current state. Please keep in mind we´re here for the long run. 5-10 years horizon at least.
$TAP - bought at $44.95 - Issue 1
Closed the week at $47.79 (up 6.32%)🔥
$GEO - bought at $5.79 - Issue 7
Closed the week at $7.91 (up 36.31%)🔥
XTRA:DFV - bought at 12.96€ - Issue 8
Closed the week at 14.12€ (up 8.95%)🔥
READ - bought at 39.25SEK - Issue 12+24
Closed the week at 35.54SEK (down 9.45%)❄️
$HIMS - bought at $8.28 - Issue 12+25
Closed the week at $7.11 (down 14.13%)❄️
$HIMS - Latest The Motley Fool article.
Early that morning, Credit Suisse prognosticator Jailendra Singh updated his price target on the stock, lowering it from $16 per share to $14. While doing so, however, he maintained his outperform (i.e., buy) recommendation.
Upcoming IPO of the Week - $ONON
Today the Zurich-based manufacturer of athletic footwear and apparel ON, filed for an initial public offering in the United States (NYSE) under the ticker $ONON.
Founded in 2010, ON is selling its products in more than 50 countries. The company is considered the fastest growing sports company in the world. ON developed the world's lightest, fully cushioned running shoes using its patented CloudTec sole technology, the performance benefits of which are scientifically proven. In 2019, Roger Federer, the best tennis player, joined ON as a co-entrepreneur, bringing his unique experience to the company. As a result, the impressive growth story has gained traction and is unlikely to go off the rails.
On cited that half of its customers are in North America as the reason for going public in the U.S. instead of Switzerland, ON is a global brand with the logical consequence of going public in New York, the document to the SEC said.
The company is present in about 8100 retailers in 60 countries. On had also opened a flagship store in New York in December. According to unconfirmed earlier reports, Roger Federer has joined the running shoe manufacturer at the end of 2019 with 50 million Swiss francs, giving him a stake of around 5 percent in ON's capital.
The company now employs 883 people, about half of them in Switzerland. Innovation, design, development, and all testing are done in this country. Production takes place mainly in Vietnam and China, with some products made in Europe. ON also made the Olympic apparel for the Swiss delegation at the Tokyo Games.
Some Numbers
According to the current "Bilanz" article, ON aims to valuation between 6 and 8 billion.
In the first half of the year, ON generated sales of 315.5 million Swiss francs. This was an increase of 85 percent compared to the same semester last year, he said. Overall, ON grew 66 percent annually from 2018 to 2020.
Adjusted operating profit before depreciation and amortization (adjusted EBITDA) was CHF 47.3 million in the first six months of 2021, up from CHF 16.0 million a year earlier.
Below the line, ON returned to the black with a net profit of CHF 3.8 million. The company had suffered a net loss of CHF 33.1 million in the previous year due to the corona pandemic.
TL;DR
The timing for ON’s IPO is favorable. Manufacturers of running shoes have seen a surge in sales during the coronavirus pandemic. As a result, shares such as Nike, Adidas, and Asics have risen very strongly in recent months. Also, the stock market environment seems to remain receptive to new stocks at the moment. Looks like a promising stock.
I’ll add another article as soon as some more details are available before the IPO.
Quote of the Week
"To buy when others are despondently selling and sell when others are greedily buying requires the greatest fortitude and pays the greatest reward."
- Sir John Templeton
Tweets of the week
Article of the Week - The Short Seller Who Took On Wirecard Is Aiming for a Bigger Target
Barron's published an article about the Activist investor Fraser Perring who also betted against Steinhoff. It- Worth reading.
Perring says he is now working on an alleged fraud in Germany that is 3½ times as large as Wirecard, which at its peak was a $28 billion company, but refuses to divulge details.
The kind of research he is engaged in is expensive. The Wirecard project alone totaled 2.3 million euros, including legal costs, he says. “Every single company we come to we have to build up a new network,” he says.
Joke of the Week
After a bumpy week in the stock market, time to have a good joke to relax. 😬
Company names of the week - Q
This is a list of company names with their name origins explained.
Today's Top 5 letter Q:
Q8 – as the abbreviation for Kuwait Petroleum International Limited, it is intended to be pronounced similarly to Kuwait.
Qantas – from its original name, Queensland and Northern Territory Aerial Services.
Qualcomm – Quality Communication.
Quora – faux plural of quorum, evocative of questions and answers.
QVC – Quality, Value, and Convenience.
Got Feedback, Questions, or Suggestions? Just Hit Reply; I’d love to hear your comments.
Thanks for reading, and until next Monday,
Sebastian from 247capital