04-06-2018, 11:13 PM
Thanks to various fellow buddies for the valuable insights.. I have a friend that works for 8I as an analyst and course instructor. Hope he wasn't pressured to invest in these companies.
(04-06-2018, 10:19 AM)TTTI Wrote: [ -> ]They managed to somehow get a pte entity listed at a ridiculous valuation, aka sold out to the dumb public at IPO.
(05-06-2018, 12:14 AM)jaco Wrote: [ -> ](04-06-2018, 10:19 AM)TTTI Wrote: [ -> ]They managed to somehow get a pte entity listed at a ridiculous valuation, aka sold out to the dumb public at IPO.
In principle, you are right. One is free to offer a company for IPO at a ridiculous valuation. The market is free to accept or reject that valuation and in this case there were apparently some buyers initially.
However, there are still rules and regulations pertaining to the IPO process and a lot of those concern full disclosure of the facts by the sellers in order to protect the buyers. In the Digimatic prospectus two companies with non-descriptive names (Champion Star United Inc and Aden Ventures Limited) are listed as large pre-ipo shareholders. There is no explanation of who these parties are and what their intentions are. From various sources, we now suspect that former students of 8I's investing courses are behind these entities. If true, it seems to me that this is material information that should have been mentioned in the prospectus. Any reasonable, prospective buyer of Digimatic shares, would want to know this.
(06-06-2018, 04:57 PM)TTTI Wrote: [ -> ]Also, at IPO, the PE was >100, so if "investors" didn't bother to investigate deeper and paid up the equivalent of more than 100 years of earnings.....
No sympathy from me.
The way this works out is if everyone bothers a bit more about what they're buying. If a dodgy IPO like this comes along and everyone does just a tiny bit of digging, the obvious red flags would put everyone off. Then such dodgy IPOs will naturally fail to exist.
I'm talking about obvious stuff. The PE at IPO is certainly obvious and doesn't require much effort. You don't need to trace and track a long paper trail for that.
So, that's just too bad for the IPO "investors".
(07-06-2018, 09:51 AM)bardsmanship Wrote: [ -> ](06-06-2018, 04:57 PM)TTTI Wrote: [ -> ]Also, at IPO, the PE was >100, so if "investors" didn't bother to investigate deeper and paid up the equivalent of more than 100 years of earnings.....
No sympathy from me.
The way this works out is if everyone bothers a bit more about what they're buying. If a dodgy IPO like this comes along and everyone does just a tiny bit of digging, the obvious red flags would put everyone off. Then such dodgy IPOs will naturally fail to exist.
I'm talking about obvious stuff. The PE at IPO is certainly obvious and doesn't require much effort. You don't need to trace and track a long paper trail for that.
So, that's just too bad for the IPO "investors".
As you say, it's trivial to find out what the PE was at IPO. That's why it's curious that there was enough demand for the IPO that it actually ended up oversubscribed. One can't help but wonder where this demand came from.
All just my speculation, of course.
(07-06-2018, 09:51 AM)bardsmanship Wrote: [ -> ](06-06-2018, 04:57 PM)TTTI Wrote: [ -> ]Also, at IPO, the PE was >100, so if "investors" didn't bother to investigate deeper and paid up the equivalent of more than 100 years of earnings.....
No sympathy from me.
The way this works out is if everyone bothers a bit more about what they're buying. If a dodgy IPO like this comes along and everyone does just a tiny bit of digging, the obvious red flags would put everyone off. Then such dodgy IPOs will naturally fail to exist.
I'm talking about obvious stuff. The PE at IPO is certainly obvious and doesn't require much effort. You don't need to trace and track a long paper trail for that.
So, that's just too bad for the IPO "investors".
As you say, it's trivial to find out what the PE was at IPO. That's why it's curious that there was enough demand for the IPO that it actually ended up oversubscribed. One can't help but wonder where this demand came from.
All just my speculation, of course.
(07-06-2018, 07:07 PM)karlmarx Wrote: [ -> ]Now that the share price of 8I and all its related companies have tanked to abysmal depths, the company is brought back to the spotlight again.
This whole 8I thing is just sad.
1) Salesmen offloading highly-valued companies of questionable quality to 'too trusting' learners.
2) Learners not using any of the 'value investing' skills they were taught. If they were taught at all.
3) Salesmen takes his sales pitch to new investors, after exhausting his present clients.
4) Learners lost their money having bought shares of questionable worth.
Instead of getting schooled on how to make investments, the learners were sold questionable investments.
I am both appalled and disgusted by what management has done.