IPOs have been a favorite way for small investors to get in on the ground floor of exciting businesses. Even though the 2023 IPO market was mostly a bust—companies raised only $18 billion in the first three quarters—recent high-profile IPOs such as grocery-delivery app Instacart and British semiconductor chip designer Arm Holdings have raised hopes that 2024 might be more lucrative. Hilary Kramer of A&G Capital Research offers her take…
Tread carefully. Global banks that underwrite IPOs see too much uncertainty in the next 12 months to take many companies public, including a possible recession as interest rate hikes slow US economic growth…the Fed’s signal that rates will remain high until further notice…and investors’ lack of appetite for risk. Potential IPOs worth keeping on your radar in the coming months…
BMC Software made its name creating programs to increase the efficiency of IBM mainframe computer systems. Now, its software allows thousands of major companies to optimize complex operations, such as supply-chain management, security and cloud computing.
Stripe is a payment processor for e-commerce merchants, allowing them to accept credit and debit cards and process payments from mobile wallets. Amazon, Apple, Target, Walmart and others use its services.
Alternative strategy: Look for companies with strong growth potential that went public in 2023 but were overlooked by investors. I like…
TXO Partners (TXO), the oil-and-natural gas producer in West Texas, offers a recent 9.6% yield and benefits from the multiyear cycle of supply shortages that will keep energy prices elevated. Recent share price: $19.60.
