By Jeff Brown, Editor, The Bleeding Edge 2020 was a great year. Some might be surprised to hear that, given the pandemic lockdowns, tumultuous elections, and other curveballs thrown in the last twelve months. But readers following my research know exactly what I mean. In each of my investment services, we saw incredibly strong performance in our portfolios in 2020. In The Near Future Report, we earned realized returns like 87%, 277%, and 259%. In Exponential Tech Investor, we saw gains of 135%, 178%, and 308%. In Early Stage Trader, we had gains of 87%, 106%, and 116%. And I expect we will have another great year in 2021. But this year, I’m also introducing a new idea for finding great technology investments, all focused on a very specific area: initial public offerings (IPOs). A Market on Fire The IPO market is on fire right now. In 2020, we saw 489 initial public offerings. And those IPOs raised more than $154 billion. And I’m on record saying that the IPO market will be even bigger in 2021. There is an “IPO backlog” right now. There are so many exciting technology companies that have been staying private for years. And this has created a backlog of companies that are now finally going public. In essence, these companies are like a champagne bottle. All this pressure has been building for years. And now, finally, the cork has popped, and they are all lining up to go public. What’s interesting is that a lot of these IPOs were put on hold in 2020 because of COVID-19 and the economic lockdowns. Then this wave of IPOs came back with a vengeance around last September. But there’s just one problem with investing in these IPOs… [Featured: Stock Options are DEAD! "Penny Trades" have WON…] The IPO Problem Here’s an example to illustrate the problem we’re seeing. On December 9, an artificial intelligence (AI) company called C3.ai held its IPO. The stock was priced at $42 a share. But when shares began trading, the stock opened at well over $100… more than double the listing price. Investors never had a chance to invest at a reasonable valuation. And sadly, that’s not the only time this has happened… Also in December, an exciting biotech company called AbCellera held its IPO. But we saw the same thing… AbCellera, which worked alongside Eli Lilly on its COVID-19 antibody therapy over the past year, was priced at $20, but it opened at $58. That’s nearly three times higher. And even larger IPOs aren’t immune to this issue. Airbnb, the popular vacation rental company, finally held its long-awaited IPO on December 10. The stock was priced at $68 per share. But once again, when it opened for trading, it was at $146. That’s more than double the listing price. I could go on and on with similar examples. Do you see the issue? Recommended Link | This Tiny Piece of Tech Could Destroy China's Entire Economy… The U.S. military, Google, Amazon, and Apple… have all joined forces to develop the most advanced "weapon" in history. And it's aimed straight at China. This modern-day "Manhattan Project" is worth a potential $15 trillion… And one small company's tech makes the whole thing go. | | -- | Solving the Problem One of our strategies for success in all of my research services is to invest in great technology companies at reasonable valuations. That’s how we stack the deck in our favor. There are a number of companies with exciting technology that I would love to add to our portfolio… But many of these companies are opening for trading at valuations that are far too high. At these levels, I can’t recommend any of them. On any negative news or earnings miss, shares are likely to sell off. Investors are nearly guaranteed to lose money when investing at these levels. So how do we get into these early-stage stocks before the run-up happens? Is it even possible? That’s where our new strategy comes in… In 2021, I’m going to help my readers to invest in companies before they IPO. But we’re going to do it a little differently… In a traditional IPO, pre-IPO shares are typically reserved for large hedge funds, private equity, or high-net-worth investors. Regular investors are locked out. But there is another way to get pre-IPO shares in exciting early-stage companies using something I call “pre-IPO codes.” [Featured: This one stock could be a game changer for you] These “pre-IPO code” companies enable investors to essentially get shares in companies before their IPOs. And you don’t have to be a millionaire accredited investor to invest… And here’s the good news… Pre-IPO code companies are more common than you might think. There are hundreds of them trading right now. And in the last several years, things have really taken off. In fact, in 2020, 50% of all IPOs in the U.S. were done using these “pre-IPO codes.” And here’s the thing. This has nothing to do with Regulation A, Regulation Crowdfunding (CF), or any other type of private deal. Investors can simply type in a pre-IPO code into their brokerage account and buy shares. This is the best way I’ve found to invest in exciting companies before IPO day. Recommended Link | #1 step to prepare for Biden Presidency? Surprisingly, only roughly 10% of people in the U.S. have made this move… yet it's already created tens of thousands of millionaires. And with Biden and company about to occupy the White House, this could prove to be the No. 1 most important financial step you take between now and the end of this year. | | -- | Your Chance to Profit This idea is so big, I knew I had to devote an entire research service to it. That’s why I held a special online event last Wednesday night. More than 25,000 people tuned in! During the event, I revealed what pre-IPO codes are and how investors can secure a stake in these early-stage companies before IPO day. I don’t want anyone to miss out on this opportunity. So my publisher has agreed to make the replay of the event available for a short time. To access it, just click here now. Regards, Jeff Brown Editor, The Bleeding Edge Like what you’re reading? Send your thoughts to feedback@rogueeconomics.com. Get Instant Access Click to read these free reports and automatically sign up for daily research. |
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