Some “hot” companies are getting ready to list on the
Australian Stock Exchange - namely, Link, McGrah Real Estate and Baby Bunting.
When investing in IPOs it is imperative that you identify the
motivations (from the business owners perspective) for doing so. Is it a firm that actually needs money to grow and
the managers are retaining a substantial shareholding or is it a private equity
flip? I don’t think there’s any question that Link is a great business that
have a competitive edge in their market (and a clear strategy for growth going
forward) which has helped them sustain healthy margins, good cash flow
generation and >90% recurring revenues. However, I question the multiple
attached to this business.
The other two companies I won’t make a comment on for various reasons – it would be wise not
to infer from this.
The main reason for writing this post is to say that it is with
great pleasure that I’m preparing an exciting post about my experience at a
small investment firm. Titled “memoirs of an aspiring fund manager” (don’t
laugh!) it will detail what I have learnt thus far working in the investment
management industry. It is targeted towards younger, relatively inexperienced individuals
(such as myself) who might want some insight into the industry and some lessons
I’ve learned along the way. Watch this space!
