millionaire stock portfolio

Boost your millionaire stock portfolio with this new IPO.

Is IPO share purchase a good strategy?

IPO stands for the initial public offering whereby private company conduct their first issue of stock sales to the public. The CEO and their board would hold on to majority stakes to ensure they still have sufficient control of the company business plans.
 
There have been many exciting IPO in the past few years. A few of them very successful and plenty more underperforming. From Ferrari to SnapChat and Spotify to Dropbox, where the future and sustainability of these companies are still questionable. Looking back ten years ago, Facebook and Netflix suffered waves of backlash before coming out dominating. Not many companies have the perseverance to stand the test of time.
 
There are two reasons why I do not participate in IPO shares at launch. First, the media and financial institutions overhype causing the price to rocket and value the company worth years ahead of its expected company value. Secondly, the volatility price swings are aggressive for the first year of business.

Next Millionaire Stock Portfolio Recommendation

However, there is one company in the near future horizon which have captured my attention recently whom have potential to be a millionaire stock portfolio . Ok, let me tickle your imagination before I reveal it to you with my five favourite facts.

#1 Disruptive Technology

I've previously written about the potential future growth of cashless transaction companies (click above for link) as millennials no longer carry cash. China and India's economy are all driven by mobile phone cashless transaction on a daily routine.

Yes, this new IPO was founded in 2006 and only recently looking into going public in Mid-2018

#2 $90bn sales in 2016.

Yes, this new IPO is coming into the market which is evolving and still growing. Currently, this company focuses on large volume business, taking the burden of the transactional process from the merchant. They provide a transparent low-cost fee which allows the seller and buyer to reduce cost on both ends with all the insurances included. They already have clients such as Netflix, Spotify, Uber and EasyJet.

#3 Amazon Fears them.

Amazon is creating their own version of PayPal on their platform to basically reduce overhead cost. PayPal is currently worth US$100bn and looking to expand further after their divorce with eBay. This new IPO are not worried and obviously going public to get more funding to secure more business and expand their infrastructure. They have a simple universal solution which easily plugs and play into a merchant's setup which is seamless for paying customer. Do you know you are already using them on Netflix, Uber and Spotify?

#4 Biggest rival is worth $100bn.

From the current report, this new IPO will be valued between US$5bn to $10bn compared to Paypal current worth of US$100bn. eBay opted for this company and ending PayPal's relation in 2022. This new IPO claims they will be the available globally and not just for the US or EU market. This might be a stepping stone payment company between India/China and EU/US.

#5 Made In EU.

Yes, it is European. Europe has the most stringent policies and quality control worldwide. This demonstrates that it can be easily implemented in US, Asia, South America and Africa continent. Final Hint! It's going Dutch!

Scroll Down to Reveal!!

THE REVEAL--------"ADYEN".

When is Adyen ready for IPO?

From various rumour mill, it can be out from June to October 2018. The IPO will sit on both the Dutch stock exchange. Again my worry is the over-hype and overvaluing of the stock, to begin with. Never rush into an IPO launch, always give it three months at least before buying it to allow stabilizing time. I am already an owner of PayPal shares. My dilemma is whether to trade or hold both.

How is Adyen Unique over PayPal and other rivals?

Currently, when you shop under the PayPal banner, you have to log into an e-store website. When you checkout for payment, you have to go to an external PayPal link with another log on. Pay via PayPal and then return to the merchant website. If you have issues with the Merchant for refunds or dispute, you have to contact PayPal as the mediator. Adyen's technology is different because embedded transactional process within the merchant's framework. No additional login details required apart from the merchant. If there was a payment issue, you contact the merchant. Its no difference as walking into a shop completing a purchase. Keeping it back to basic simple.

Ayden Potential?

Digital Cashless transaction Payments in India and China are more advance compared to the US and Europe. Adyen needs to build an infrastructure and rely on self funding to grow its capital worth to avoid being bought out by a other merchant (i.e.Walmart) or rich conglomerate company (i.e. Tencents or Berkshire). It can unlock its potential leading as the majority digital cashless transactional business. I am expecting Adyen to exceed a US$25bn by 2020. Adyen excellent integrating technology payment philosophy allows collaboration from AliPay and Visa to make it a world highway platform rather than a standalone platform.

FInal Words

Analysing the case-study of the recent IPO launch in the last 12 months, I would not advise diving in on day one shares issues. I would hold back for at least 3 months to allow volatility to settle down before purchasing. Giving it time allows the company to demonstrate the plans with the initial investment and gauge the future business plans. End of the day a good quality company will strive and do well. You do not have to buy at rock bottom price, as long as you are in for the company's successful long haul.

From,

Dr Alex Koh
Founder and CEO of MooMooCoo.com
Family Finance Made Simple

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