BC TRADING
Saved by @Alex1Powell

You're about to invest in the next biggest company to list on the stock exchange. You dream of a luxury island & a private jet - but you end up eating canned food instead.

Here's a guide to the insider secrets of IPOs [Thread]

 Hold on, what is an IPO? Indian Police Officer?

No, it's an Initial Public Offering

It's when a private company issues stock to the public to raise capital. Facebook, Airbnb & Apple are IPO companies

It's not just US companies. I worked on IPOs in London, Johannesburg & Lagos
"The Roadshow/ Marketing"

The IPO process can be long!

The company hires a few investment banks to go out & sell the story to investors. Think of it as a series of dates. Do you tell her you leave towels on the floor on the first date? No.

Investment banks sell the highlights
Pro-tip: NEVER invest into a company purely off the company roadshow materials. Having spent hours curating these docs - the wording is ALWAYS massaged.

Your go-to is the prospectus - the Bible for an IPO

Here's the Airbnb prospectus - check it out
https://t.co/jSxk2zwfuZ
What should I be looking for in the prospectus?

Just like your cheating ex - don't focus on what he's saying, focus on what isn't being said.

- Forecasts: always take these with a pinch of salt
- Key risks: dry but important
- Why we need the money: MOST IMPORTANT!
Whenever you see "use of proceeds will be used for general corporate purposes" just know someone is getting paid racks.

If there's a pipeline of acquisitions or a perfectly crafted growth plan - great! If the uses of capital are for day to day activities - it's worth pausing.
Let's take a look at the Airbnb IPO. UP OVER 100% ON IPO DAY!!

That's amazing! Surely everyone should be celebrating. This is what success looks like right? Management must be popping champagne.

No - this is a complete fuck up... read on
Whenever company prices rocket up on IPO it's called a "first day pop". Less flattering term is "money left on the table".

You hire me to sell your house. I sell it for $1m.

The same day the new buyer RE-SELLS your house to someone else for $2m.

You should be pissed off.
Why didn't you get $2m in the first place?!

(Besides investment banks getting it wrong...)

1. IPOs are generally underpriced to fill up the order book
2. Retail investors have fuelled the IPO pop
3. Companies price lower to avoid a failure
4. The market right now is HOT
1. IPOs are underpriced

Investment banks are also underwriters. This means if they don't sell their blocks of stock they have to pick it up themselves.

Wait, isn't that an incentive to underprice... sadly, yes

Here's all the banks on the Airbnb IPO - literally everyone
2. Retail investors are driving demand

Managing the order book is tricky. You need to balance liquidity/ trading volume with price tension. Short term investors create price action at the expense of volatility.

Recently, retail investors are far more active & drive up demand.
3. Companies don't want to fail

"Under promise/ over deliver"

Failed IPOs can happen for a number of reasons but most of all it's a fucked up signal to the market.

Many times it's not the companies fault, it's terrible timing resulting in valuation expectations not being met.
4. The IPO market is HOT

In a market fueled through Fed stimulus, stock splits and a deep disconnect of forward valuation multiples to the real economy - the market for equity issuances is attractive (albeit risky)

In short: stocks are fucking expensive right now
How much money do investment banks make from capital raising?

Nothing major - a few billion $

Underwriting fees in Hong Kong are as low as 2.5% on the size of the IPO but I have seen clients pay more than 4% on IPOs

There's A LOT of money out there but it is VERY competitive
I'm still reading this thread... I want to be an investment banker listing companies and running IPOs!

Sure it's exciting to switch on Bloomberg & see your company trading or read about your IPO on the front page of the financial times BUT most of the IPO process is VERY dry...
It's clear the IPO process is broken, how do we fix it?

Enter the wave of direct listings, hybrid listings & SPACs

A SPAC is basically an empty vehicle that lists on the exchange which promises to fill up passengers (companies) within a short space of time

Massive business!
Should I invest in companies that aren't making money?

Sure - but be VERY selective

Cash burn rates are very important especially when it ends up in higher leverage (debt) or more equity issuances

Traditional "value" investing has underperformed growth during this bull market
Can I always make money investing in an IPO?

No!

For every hot listing, there's another that doesn't get talked about which is a black hole that soaks up all your capital and returns less than nothing...

Here are a couple NASDAQ IPOs
I need to read more on IPOs - I need more!
here's another thread on IPOs which deals with Aramco
https://t.co/6k5Ap1bTiG
If SOMEHOW you made it to the end! Shout-out, I appreciate you!!

For more IPO analysis & terrible jokes, feel free to join our Telegram channel:
https://t.co/v3uNq6IvBk

More from Koshiek Karan

Koshiek Karan
Koshiek Karan
@iamkoshiek
Step by step guide on how to buy/ sell tweets

You're essentially minting a tweet, creating a NFT, transacting on the blockchain & settling payment in ETH


NFT is a non-fungible token

Fancy term for a digital certificate for intellectual property. Think of it like an autograph. Someone pays for your autograph and keeps it as an investment.

Your autograph (NFT) here is a digital certificate of your tweet.

What info is on the digital certificate?

The tweet remains on Twitter under your account. The digital certificate contains metadata of the original tweet.

Metadata = when you posted the tweeted, the time, contents, your digital signature from your crypto wallet

Here's the steps:

1. Verification & Tweet Listing
Login to https://t.co/2UhT8QJTFQ so Twitter can verify which tweets are yours

2. Set up crypto wallet
Add the metamask extension to your browser to interact with cryptocurrency https://t.co/59kxXX5JUt

3. Review & accept offers
TRADING TWEETS
Koshiek Karan
Koshiek Karan
@iamkoshiek
Running a small company or need cash for your side hustle? Here's the ultimate capital raising guide [Thread]

Ways to raise capital:

1. Bootstrapping
2. Bank Debt
3. Working Capital/ Revolving Facilities
4. Angle Investors
5. Venture Capital
6. Private Equity
7. Crowdfunding
8. Government Agencies
9. Get a Business Partner
10. Funding competitions

1. Bootstrapping

The cheapest way of funding. Build the company with savings & family contributions. Privilege is a massive factor in getting off the ground.

Jeff Bezos' parents ploughed $245k into his e-commerce startup. Bill Gates' parents funded his founding company.

2. Bank Debt

Banks take credit risk which means they're often fucking conservative. They will focus on your ability to repay the debt & pricing depends on the probability of you defaulting*

*Pro-tip: don't use bank funding to frequent strip clubs, use shareholder money instead

3. Drawdown facilities

Probably the most underused, useful type of funding. You can borrow against the assets of your company for really cheap. Most companies have short-term liquidity issues

I have worked on deals where these type of facilities were used to buy small companies
ALL
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Don Petty Cash
Don Petty Cash
@iamkoshiek
Contemplating quitting your corporate job to become your own boss? [Thread]

Money

Making money is much easier when you have money. More importantly, having dry powder buys you time.

Starting with anything less than 6 months salary can be suicide. Bonus if you can get to a year saved up.

Flicking the switch on monetizing a new business isn't instant.

The fine print

Scrape through your employment contract to check for non-compete clauses, lock-in periods for approaching competitors, policy on recruiting existing employees.

Check what the notice period is, number of leave days you have to cash & how to transfer your pension.

IP

NEVER work on your personal business using a company device. Also resist the urge to send that sexy excel model to your personal email. Imagine chilling in Pollsmoor for a workbook.

Many companies run a check when you resign to check what you recently emailed & printed.

Skills

Level up as much as you can. Make a detailed checklist of everything you want to master before you bounce. Ideal skills are versatile, resilient and future-proof.

The more advanced your skills, the better your chances of someone paying you for those abilities.
ALL
Koshiek Karan
Koshiek Karan
@iamkoshiek
Bonds explained in 90 seconds! [Thread]

Wait, what's a bond?

Very simply, it's a loan.

Instead of borrowing money from a bank, a company (or government) will borrow from investors. So investors will give the company money & in exchange they get paid interest (called coupons)

Fancy term for the IOU is "bond issuance"


I'm an investor, how do the mechanics work?

Company sells you a bond for $100 and promises you 5% every year for 3 years. They also pay you $100 at the end.

Yr 1: $5
Yr 2: $5
Yr 3: $5 + $100

That's $115 (or a 15% return) after 3 years. Right?

The real return is closer to 10%


Why are my returns so much lower?

$100 today is worth more than $100 in 3 years from now - yes, inflation!

Even at a modest 1.5% inflation each year, the $100 you give up today is worth less than $96 in 3 years from now.

ILBs (inflation linked bonds) try & help solve this.


How come bonds are always quoted in yields (%s) instead of actual prices like shares?

Bonds have different maturities* & coupons - quoting a percentage makes it easy to compare different bonds & compare against other assets.

*Maturity = time to get paid back (3yrs in example)
BONDS
Koshiek Karan
Koshiek Karan
@iamkoshiek
Here are 20 of my best threads from 2020 covering personal finance, entrepreneurship, economics & finance, investment banking ++ useful resources.

Massively grateful to everyone who took time out to read, comment & share these across the year. I really appreciate you.

[Thread]

1. Breaking-in – study notes, free textbooks & past


2. Breaking-in – the job connector


3. Breaking-in – book smart vs. street


4. Personal Finance – MEGA Property
TWITTER

More from Trading

Yogeeswar Pal
Yogeeswar Pal
@yogeeswarpal
A thread.

Earnings Trades Simplified.

Earnings announcements are public announcements that display a company’s earnings, or lack thereof. As the earnings announcement gets closer, implied volatility tends to increase. After earnings are announced,...

1/n

the uncertainty of what will happen diminishes, and usually we see a rapid decrease in implied volatility because of it. Because of this phenomena, we tend to stick to premium selling strategies when it comes to earnings plays. We can take advantage...

2/n

of the implied volatility crush by selling premium prior to the announcement, and buying it back after the announcement.

Earnings trades are not for everyone, as they involve high amounts of uncertainty and random movements.

3/n


Why Trade Earnings -

-Increase number of occurrences, many trades available so increases of our probability of profit.

-High IV opportunities

-Short term Binary event leading to drastic volatility crush.

4/n

Factors to consider when placing earnings trade -

1. Expected Move
2. When to place trade
3. Historical Moves
4. Strategies based on market conditions

5/n
TRADING , ALL
Abhishek Kar
Abhishek Kar
@Abhishekkar_
𝐑𝐮𝐥𝐞𝐬 𝐨𝐟 𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐧𝐠 𝐓𝐡𝐫𝐞𝐚𝐝
The entire thread summarizes some important rules with respect to investing. Inspired by legendary traders,these will not only help you to grow wealth,but also make a smart investor. Hope you would like the thread & shower some love

Rule 1: Bulls, Bears Make Money, Pigs Get Slaughtered so chose your category wisely
Rule 2: It's OK to Pay the Taxes,Dont just wait for a 10% LTCG always. Sometimes you know it won't pay you
Rule 3: Don't Buy All at Once,Have patience market will give enough opportunities

Rule 4: Buy Damaged Stocks, Not Damaged Companies. Understand the diff b/w undervalued stocks and no value stocks. Everything cheap is not bargain,it could be trap.
Rule 5: Diversify to Control Risk,make sure you don't put everything into one stock,one sector or one asset class.

Rule 6: Do Your Stock Homework. You spend 5 hours to buy a cream on Amazon but research for 1 hr based on buying a stock on twitter! Well,do your homework.

Rule 7: No One Made a Dime by Panicking .Invest 2-10% and leave rest. If it falls,pain will be low,if moves,no FOMO haunt

Rule 8: Buy Best-of-Breed Companies,This doesnt mean you have to invest in the most expensive companies,all it means is you need to buy co.s with good earnings,promoters and sustainability
Rule 9: Defend Some Stocks, Not All
Rule 10: Bad Buys Won't Become Takeovers,STOP hoping
TRADING
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Trader knight
Trader knight
@Traderknight007
Three things which will make a difference in Your trading Results.

A thread-


1. Clarity- When the mind is free from fear and ego

The first step to successful trading is to be clear about everything you do.

BUT, the reality is that most traders don't even know what they are doing.

And because of this-

They don't have any goals.
They don't have any Trading plan
They don't know what is suitable for them
And the list goes, on and on.

If you are among the people as described above, don't worry, There is nothing wrong with you, almost 90% of Traders are like that.

So, what do you have to do to get CLARITY in your Trading-

Find one style that is suitable to your personality and double down on it.

Why?


In this world where we have plethora of information just one click away, most people are distracted and see a Glowy thing every time they go over the social media.

They Find something new every now and then, jumping from one strategy to another, searching for Holy grail.
TRADING , ALL
Aditya Todmal
Aditya Todmal
@AdityaTodmal
How to save tax when income is above 50 lakhs?

Here are 9 benefits of trading in a corporate account: 🧵

Collaborated with @niki_poojary

1. Make a Pvt Ltd Company.

Form a company with family members and trade under it. The family members should be directors of the company. Will explain why later.

Why form a company?
You will only need to pay 25% flat tax. Individuals have to pay 30% tax above 10 lakh profits.

2. Surcharge Benefits:

You will be charged a lower surcharge in a corporate account.

Check the picture below:


Total Tax Outlay:

The total tax outlay for individuals is 30% plus surcharge. If you really earn a lot (10 cr +) then you will be paying 42% tax.

Whereas in a company you'll be paying a maximum of 28% tax.

This is how rich people save a lot of their money by paying low taxes.

3. Expenses can be deducted.

All expenses can be deducted from a company account.

Companies:
1. First make a profit.
2. then deduct the expenses
3. & Pay tax on the remaining income

Individuals:
1. First Profit
2. Then Pay tax
3. Expenses with whatever is left.
ALL , TRADING , TAXES RATTIBHA
Trader knight
Trader knight
@Traderknight007
Life is a continuous journey of going through peaks and troughs of Happiness and struggle.

We can only see the Happy part of other lives, but ignore what they might have gone through to achieve that.


But let me tell you, even if someone is at ease right now, doesn't mean that he will continue to be at ease for their whole life.

The struggle will come again and we will have to go through it ,whatever we do, whoever we are , we have to cross that river of pain.

Even,In trading there are times when nothing works out, you go through long time and money draw-downs.

Even if you think you are a master, you have to go through it.

If you are struggling right now, don't lose hope as the tables will turn.

But remember to work as hard as you can and do as much good work as you can in your ease or Joyful time of life, because the tables will turn again.

Thank you for reading.

Trader knight.
TRADING

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Aditya Todmal
Aditya Todmal
@AdityaTodmal
12 TRADING SETUPS which experts are using.

These setups I found from the following 4 accounts:

1. @Pathik_Trader
2. @sourabhsiso19
3. @ITRADE191
4. @DillikiBiili

Share for the benefit of everyone.

Here are the setups from @Pathik_Trader Sir first.

1. Open Drive (Intraday Setup explained)


Bactesting results of Open Drive


2. Two Price Action setups to get good long side trade for intraday.

1. PDC Acts as Support
2. PDH Acts as


Example of PDC/PDH Setup given
STOCKLEARNINGS , LEARNSTOCKTRADING
Jaya_Upadhyaya
Jaya_Upadhyaya
@Jayalko1
ARULMIGU SRI PARTHASARATHY SWAMY KSHETRAM, CHENNAI (TN)

Divya Desha where Perumal appears with moustache of a Sarathi (charioteer) to conduct Arjun’s Rath in Kurukshetra war.
Here, Venkatkrishna-Parthasarthy is present with his entire family.


He is flanked by Sri Rukmini, Sri Balarama, Satyaki, son Pradyumn and grandson Anirudha.
It is said that on the request of Raja Sumathirajan, Sri Perumal appeared and stayed here as Arjun’s charioteer (Partha-sarathi).


He is without chakra as he had promised not to wield weapons in Mahabharata war.
The face has scars caused by Bhishma’s arrows on Arjun. Prabhu took the arrows on himself to protect Arjun.


The Naivedyam offered here does not have spices. Ghee is used in it to cure Prabhu’s wounds. Sarkarai Pongal is famous here.

It is said that Rishi Bhrigu found Devi Lakshmi (as Vedvalli) in Alli flower in the mandir pushkarini. Later, Sri Ranganatha came here to marry her.
ALL
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Suhas S. Hardutt
Suhas S. Hardutt
@HarduttSuhas
Marvels of Medical Science in Ancient India

ACHARYA SUSHRUTA and SUSHRUTA SAMHITA

Ancient Indians were pioneers in diverse fields of study and their genius was centuries ahead of their times. Feel the glory, basking in pride of their unparalleled achievements.

(Thread)


Sushruta (circa 7th or 6th century BC) was a surgeon who in present times is known as the “father of Indian medicine” and “father of plastic surgery” for inventing and developing surgical procedures. He lived in Kashi on the banks of river Ganga.(1)

His work documented in the Sushruta Samhita (compendium) is one of the oldest texts in the world on plastic surgery and regarded as one of the trilogies of Ayurveda. The other 2 being the Charaka Samhita and Astanga Hridaya.(2)

Sushruta compiled the Sushruta Samhita as an instruction manual for physicians to treat patients.(3)

The Samhita caters to surgical techniques listing over 300 surgical procedures and 120 surgical instruments. Additionally to 1,120 diseases, injuries and their treatments with over 700 medicinal herbs and their application.(4)
RELIGION
Murray \U0001f1fa\U0001f1f8
Murray 🇺🇸...
@Rothbard1776
NEW: @SidneyPowell1 radio interview w/ @toddeherman "The new report has a truckload of evidence of foreign interference in the election in it. That's what people seem to want to deny, even though the FBI & CISA ... issued an advisory and alert back on Oct. 30th & updated on

2/ Nov. 3rd, so for them to deny that now is absolutely absurd. Plus, we have an affidavit from an expert cyber-warfare [individual] who even shows the diagram of all the attacks coming in. We know that the VPN ... the Dominion people left those open and unencrypted on the night

3/ of the election, so that anybody could get in. We know that the packets of information went to Serbia [note: over 100 Dominion employees scrubbed there LinkedIn profiles of any affiliation with the company after the election, many of whom were in Serbia], Liechtenstein,

4/ Spain, Venezuela, Hunan, China & Hong Kong. There was traffic all over into our election system that is supposed to be self-contained, not accessible by the internet at all. We have witnesses who document that it was connected to the internet. We have a study out of

5/ [the Dominion voting system in Antrim] MI, they know that it was connected to the internet. They erased their audit files & their adjudication files, where they dumped over 68% of their ballots into a bin that they call "adjudication" [that would've been thousands + thousands
POLITICS , ELECTIONFRAUD
Vibhu Vashisth
Vibhu Vashisth
@VIBHU_Tweet
🌺कैसे बने गरुड़ भगवान विष्णु के वाहन और क्यों दो भागों में फटी होती है नागों की जिह्वा🌺

महर्षि कश्यप की तेरह पत्नियां थीं।लेकिन विनता व कद्रु नामक अपनी दो पत्नियों से उन्हे विशेष लगाव था।एक दिन महर्षि आनन्दभाव में बैठे थे कि तभी वे दोनों उनके समीप आकर उनके पैर दबाने लगी।


प्रसन्न होकर महर्षि कश्यप बोले,"मुझे तुम दोनों से विशेष लगाव है, इसलिए यदि तुम्हारी कोई विशेष इच्छा हो तो मुझे बताओ। मैं उसे अवश्य पूरा करूंगा ।"

कद्रू बोली,"स्वामी! मेरी इच्छा है कि मैं हज़ार पुत्रों की मां बनूंगी।"
विनता बोली,"स्वामी! मुझे केवल एक पुत्र की मां बनना है जो इतना बलवान हो की कद्रू के हज़ार पुत्रों पर भारी पड़े।"
महर्षि बोले,"शीघ्र ही मैं यज्ञ करूंगा और यज्ञ के उपरांत तुम दोनो की इच्छाएं अवश्य पूर्ण होंगी"।


महर्षि ने यज्ञ किया,विनता व कद्रू को आशीर्वाद देकर तपस्या करने चले गए। कुछ काल पश्चात कद्रू ने हज़ार अंडों से काले सर्पों को जन्म दिया व विनता ने एक अंडे से तेजस्वी बालक को जन्म दिया जिसका नाम गरूड़ रखा।जैसे जैसे समय बीता गरुड़ बलवान होता गया और कद्रू के पुत्रों पर भारी पड़ने लगा


परिणामस्वरूप दिन प्रतिदिन कद्रू व विनता के सम्बंधों में कटुता बढ़ती गयी।एकदिन जब दोनो भ्रमण कर रहीं थी तब कद्रू ने दूर खड़े सफेद घोड़े को देख कर कहा,"बता सकती हो विनता!दूर खड़ा वो घोड़ा किस रंग का है?"
विनता बोली,"सफेद रंग का"।
तो कद्रू बोली,"शर्त लगाती हो? इसकी पूँछ तो काली है"।
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