Urgent update from Greg — please read now
- The great equation
- A personal message from Greg Canavan
Shortly, a personal message from colleague, Greg Canavan. He provides answers to many questions he and we have received about his new Exclusive IPO Investor service.
As we’ve mentioned before, Greg’s new service is currently only available as part of the Port Phillip Publishing Alliance program.
We had to do it that way. The IPO stocks Greg is looking at are just too small for us to be able to allow thousands of excited new subscribers to buy them.
Regrettably, for the launch at least, we had to limit access to these stocks as much as possible. That’s why we chose to launch it within the Alliance program.
But time is running out. The opportunity to join the Alliance, and therefore to gain access to Greg’s IPO research, will end at midnight tonight. If you’re in before then, good. If you’re not, sorry.
Anyway, to check out the Alliance program without delay, go here. If you’d like to hear more from Greg about his Exclusive IPO Investor service, then keep reading…
Overnight, the Dow Jones Industrial Average gained 135.53 points, or 0.65%.
The S&P 500 added 18.26 points, or 0.76%.
In Europe, the Euro Stoxx 50 index added 12.43 points, or 0.35%. Meanwhile, the FTSE 100 gained 0.32%, and Germany’s DAX index closed up by 00.4%.
In Asian markets, Japan’s Nikkei 225 index is up 337.12 points, or 1.7%. China’s CSI 300 index is down 0.5%.
In Australia, the S&P/ASX 500 is up 54.27 points, or 0.95%.
On the commodities markets, West Texas Intermediate crude oil is US$48.11 per barrel. Brent crude is US$50.42 per barrel.
Gold is trading for US$1,261.36 (AU$1,707.56) per troy ounce. Silver is US$17.19 (AU$23.28) per troy ounce.
The Aussie dollar is worth 73.87 US cents.
Before we get to Greg, this from Bloomberg:
‘Amazon.com Inc., which has lost billions overseas trying to replicate its U.S. success, is now attempting to crack one of the biggest and most sparsely populated nations where bricks-and-mortar retailers are king.
‘The Seattle-based company, which sells everything from groceries and big-screen TVs to high-end fashion, says it’s “actively looking” for a warehouse as it prepares to start operations in Australia. Anticipating a price war, analysts have almost halved profit forecasts for local electronics chains such as Harvey Norman Holdings Ltd. and JB Hi-Fi Ltd.
‘But the world’s largest online retailer, which has exported its model to Germany, the U.K., Japan and most recently India, faces unprecedented challenges in Australia.
‘It’s a nation almost as large as the U.S. but home to just 24 million people. Major population pockets can be 4,000 kilometers (2,500 miles) apart, driving up the cost of fast deliveries. Wages are higher than in most major developed nations. And the quantity of red tape means it’s easier to do business in Macedonia, according to rankings by the World Bank.’
The issue of distance is important. Not just Australia’s distance from other countries, but the distance between cities.
In the US, a seven hour drive from Boston, will take you past major metropolitan centres such as New York, Philadelphia, Baltimore, and Washington DC.
In Australia, a seven-hour drive from Melbourne…won’t even get you to Sydney or Adelaide.
In the US, a four-hour drive from Milwaukee, will take you through Chicago, on the way to Indianapolis. From there, it’s a three-hour drive to Columbus, Ohio, via Cincinnati.
From there, another two hours to Cleveland, and then three hours to Detroit.
Outside of the US east coast and mid-west, distances are a bigger problem. But not to the extent that they are in Australia.
We look forward to Amazon.com Inc [NASDAQ:AMZN] in Australia. Maybe it will give Aussie retailers a well-needed shake-up. Or maybe, it won’t. We’ll see.
The great equation
We wonder if it’s all to do with land values. Controversial economist, Phillip J Anderson, will certainly let us know if it is. More details on that here.
And now, over to Greg…
A Personal Message from Greg Canavan
Over the past week, I’ve received an overwhelming response to my new exclusive IPO investor service.
The first exclusive deal is close to going live. I’ll have more details on that soon.
In the meantime, many of you had some good questions as to how the service will work.
So I thought it would be a good idea to answer those questions now, before the deadline to become a member ends in just over 24 hours.
One of the most common questions was, ‘Can you pay for an Alliance membership in one name and apply for IPO shares in a different entity, say your self-managed super fund?’
The answer is ‘Yes’. You can. We do not require the name the subscription is taken out under to match up with the name that you apply for shares in.
The broker handling the deal will know who the bidders from Port Phillip Publishing are; whether you make the application under your personal name, a company, or a trust, makes no difference.
You also wanted to know what the minimum investment is. For IPOs, it’s $2,000, rising in $500 increments after that. You can bid for whatever amount you want, as long as it’s more than the minimum.
However, keep in mind that you won’t always get the amount of stock that you bid for. If the deal is a small one, you could get scaled back, meaning you’ll get less than what you bid for.
The broker will do their best to allocate you stock; however, when a deal is oversubscribed (as most deals are), scale-backs are common.
How will the process work?
Well, if we like a deal we’ll let you know about it, and provide a link for you to enter some basic details, including the amount of stock you want to bid for. You can also add your HIN number here, so when the stock lists it will show up on your trading platform with all the other stocks under the same HIN.
The broker running the deal will pick this information up and collate it. You may be required to complete some additional paperwork but it will depend on the broker running the deal.
Don’t worry, I’ll let you know exactly what you need to do to ensure you get an allocation.
You’ll then receive an email from the broker confirming your allocation. You’ll receive instructions about when and where to transfer your cash.
Then you wait for the stock to list. When it does, provided you’ve given your HIN number, it should show up with the rest of your portfolio.
I’m confident of being able to bring you around six exclusive deals per year. As the product develops, I expect that the service will broaden.
What do I mean by that?
Well, in this business, it’s all about who you know. If I establish new relationships, and gain trust in those relationships, it will mean more deals coming my way.
Now, be clear…
This does NOT mean Port Phillip Publishing will take a fee or commission on any of the deals. That won’t happen.
We are ENTIRELY impartial.
There are no kickbacks of any kind for pushing one deal over another.
Nowhere else in the investment industry is this the case, I believe.
But it’s all about establishing trust first. Only then will I know that I’m getting you access to quality deals, rather than being used as convenient distribution for dud deals.
And, as you know, trust takes time to establish. I’d rather focus on the quality of deal-flow rather than quantity. You only need a few good deals for the service to pay for itself.
In saying that, I make no guarantees that a deal will make you money. I think there is high probability that you will make money, but there are no guarantees when it comes to the stock market.
I also got the sense from some of your questions that you view the IPO market as being different to the stock market in general. It’s not. All stocks go through the IPO process in some way. Every stock listed on the ASX started life as a newly-listed stock.
The only difference is that new publicly offered stocks don’t have much of a listed history to review. And, where they are brand new businesses, they don’t have a history of earnings.
This obviously adds an extra layer of risk. But as the world evolves and demands new products and services, there is always going to be a steady flow of new companies looking to provide these wants and needs. And they will grow their earnings as they do so.
The idea behind starting this service was to give you access to this exciting part of the market. My job is to minimise as much of the inherent risk as I can by getting you quality deals that filter out much of the rubbish.
I can’t promise that I will be able to do that all the time, but I’ll give it a pretty good shot.
Lastly, I expect the service to evolve to give you access to more than just IPO deals. If you’re a sophisticated investor, I plan to get you access to pre-IPO deals (also referred to as seed capital) and placements.
Often, a company needs capital to progress its plans to the IPO stage. It raises this money from a select group of ‘seed’ investors, who can then cash out at the IPO stage, or roll their capital into the new listing. It all depends on how the deal is structured.
The risks are much higher at this stage, but so are the rewards. If you qualify as a sophisticated investor (net assets of $2.5 million and income of $250,000 per annum), you’ll hear more about this aspect of the service as it evolves.
Well, that covers just about everything. I hope this clarifies how the service will work. I look forward to you joining me as I bring you exclusive deals that you simply won’t find anywhere else in the retail market.
Port Phillip Publishing is doing something unique here. No one else gives retail investors access to these deals like we will. So make sure you get on board.
If you decide it’s not for you, fair enough.
But I can’t promise we’ll make this offer again…at least not for some time. We are focusing on the smaller end of the IPO market. That’s where the big gains are. That means we can’t have too many people bidding for stock.
So, whether we offer this again or not depends on how the first few deals go. If the deals are heavily oversubscribed and people constantly get scaled back, we won’t promote the service again.
As such, it’s not cheap. In fact, you have to become a Port Phillip Publishing Alliance Partner to join at this stage. That gives you lifetime access to almost everything we publish, including this newsletter, for a one-time buy-in fee.
That fee is not inconsiderable.
But when you look at everything it gets you — for life — and the fact that you could feasibly make that fee back from just your first two IPO deals…it could be the greatest single investment you ever make.
But if you want to get in, you have to get in now. The offer closes at midnight tomorrow night.
To learn more about the invitation, click here.
All the best,