IPO's and New Issues

July 16 - Sleep Country Canada began trading with the IPO priced at $17, slightly above the $14-16 estimated range. Raising the range and size from $200 to $300 million was a positive for the stock, as it was over-subscribed, however at the higher price point and issuance the IPO was no longer attractive and the stock reflected this in its first day of trading, hitting a high of $17.10 then steadily falling, closing near the lows at $16.20. This is the danger when companies see more demand than expected and raise the price above the initial range, unfortunately at that point it is too late to change expressions of interest for investors and as such we did take a small loss on this position. We will re-evaluate it once the price stabilizes and we see some earnings and dividends. It appears as though the red hot IPO market has cooled as all recent TSX IPO's have fallen significantly on, and shortly after their debuts, other than Inspira.

July 13 - Inspira Financial begins trading tomorrow after a long, and confusing listings process. It looks like the stock was priced at $0.10 with a $0.15 warrant leading up to its trading on the TSX Venture, however it doesn't appear that they actually ever listed shares for public availability. A bit of an odd scenario and investors shouldn't chase it on the opening day if it opens up. Considering th warrants and significant insider holdings many institutions may look to unload their shares and keep the warrants if the stock starts to rise, therefore wait for things to calm and look for entry at or below the $0.10 price.

July 8 - It looks as though Inspira will begin trading on July 14, although there weas no IPO or price, possibly due to the Chrysalis Capital merger to gain quick access to a Venture listing. We will definitely be watching this one closely given the successful management team and interest among the private investing community.

June 5 - Inspira Financial - After incredible results with Patient Home Monitoring (PHM) and Convalo Health (CXV) Michael Dalsin says he is even more excited about the potential for Inspira Financial, which is expected to IPO next month. The company loans money to doctors in the US starting new practices, so the loans are as safe as they get and there is a lot of growth potential here. When a management has a track record as astonishing as this it's usually a safe bet that they will repeat their success.

If you managed to get in on the $0.10 private equity issue that included the $0.15 half warrants you tripled the value of your investment on the first day of trading!

#LNDV