• A conversation with one of the owners of the largest residential builders has revealed that the slowdown in construction activity has indeed commenced. read here

How many unprofitable companies are hitting the IPO market this year?

 

How many unprofitable companies are hitting the IPO market this year?

In this week’s video insight Lachlan draws comparisons between the infamous dot.com bubble and today’s tech boom. Uber, Lyft, Airbnb, WeWork, Pinterest, Zoom, Slack, Chewy.com – the list of scheduled 2019 IPOs is long and continues to grow. Do investors understand how much risk comes with these companies?

With a wave of unprofitable companies hitting the market with high valuations, the oversupply of global liquidity funding these businesses should serve as a warning to any value investor. Click To Tweet
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Lachlan is a Research Analyst at MGIM. Lachlan joined MGIM in July 2018 after studying at the University of California, Berkeley where he holds a Bachelor of Arts (Applied Mathematics and Computer Science).

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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