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Why Traders Should Invest in IPOs This Month



This article is published in collaboration with Scutify, where you can find real-time markets and stock commentary from Robert Marcin, Cody Willard and others. Download the Scutify iOS App, the Scutify Android App or visit

With Trump's announced tax reform, many investors are expecting to see a market dip in the near future. If your investment strategy is simply too short everything in site, IPOs might be a better option. There are a lot of opportunities coming up in the next few weeks, and here are a few reasons why you might want to consider them for yourself.

The Momentum Has Started
The second week of April was one of the busiest we've seen. There were seven IPOs announced in a very short amount of time. 2017 is a time of growth for many new businesses, and many investment firms are seeing IPOs as a great strategy. With more money available, there are a ton of companies jumping on the bandwagon and trying to get their slice of the pie.

There are Immediate Opportunities Available
On Thursday, there are three impressive IPOs coming to market. China Rapid Finance, a microlending in a tech startup, has shown pretty impressive growth and is just now going public. Analysts predict good things for this company, making it an ideal buy for anyone after quick returns. For those of you who are looking for a more stable investment, Floor & Décor is a great option. This company has been around for many years, supplying flooring to consumers and businesses all across the states. Massive returns aren't predicted for this company, but it would make a great stable long term investment.

Potential Gains for Those Who Watch the Market
Aside from the three IPOs scheduled for Thursday, there are 11 others with potential release dates in the next four weeks. Analysts still haven't had the opportunity to get a firm grasp on what to expect with these companies, but you can expect some results to come out as we move closer to the release date. The IPO market moves very fast, which presents a lot of opportunity for investors who are willing to act quickly on the information they find.

Established Companies face Greater Risks
For companies just going public, their valuation is based on current market conditions. For established companies, the US Government's fiscal reform acts mean that previous valuations were overblown, indicating that there could be a dip in future earnings. Additionally, the first quarter GDP is expected to be a measly 1.1 percent. These two issues combined indicate that established stocks can expect to see disappointing earnings, while newly public companies still offer opportunities.

Investment Strategies Should Adapt to Changing Market Conditions
When you invest your money in a company you believe it, it's easy to get wary when the economic conditions shift. However, the challenges facing the stock market have created room for new opportunity. If you act quick, there are more IPOs coming up in the next few weeks than we've seen for quite some time. For the savvy investor, it's clear that this is an opportunity that cannot be missed. Historically speaking, IPOs offer quick returns for those who get in on the ground floor.

This article was written by Stanley Cooper for on .

This article published in collaboration with Scutify, the best app for traders and investors. Download the Scutify iOS App, the Scutify Android App or visit

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