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Simon’s weekly wrap: Airbnb, Sygnia, Altron, and when to sell shares

This week MoneywebNOW looked at Airbnb’s Nasdaq listing, Sygnia’s annual results and business, Altron’s business and Bytes UK’s unbundling, when to sell shares, listed property and more.
Image: Supplied

Airbnb listed on the Nasdaq on Thursday and even though it was priced higher than the initial plans, it still closed the day up 112% with a market cap of US$86.5 billion. Even crazier is that this first day pop was only the tenth-best first-day IPO move for 2020. I spoke with Henry Biddlecombe from Anchor Capital ahead of the listing to get his thoughts on the stock and its valuation. His comment was that the initial IPO price was some 10% to 15% too expensive but that IPO pricing is never about valuations.

Sygnia’s annual results saw diluted Heps up 64.6% as its low-cost passive offering found solid support over the past year and even trading now generates around a quarter of its revenue. I spoke with joint CEO David Hufton on the business, the competition and how ‘low cost’ is the future of asset management – something that this group already offers, whereas other financial services firms still need to reduce costs.

The Altron share price collapsed on Monday as it spun out Bytes UK, which will be listing on the JSE and London Stock Exchange next Thursday. Adrian Saville of Cannon Asset Managers gave us a rundown of where Altron has come from, what’s left in the business and the prospects for Bytes UK. Certainly, Bytes UK is likely to attract a fair amount of attention as one of the few tech plays listed on the JSE.

Buying a share is hard, as it involves doing the research, coming to a conclusion and then having the courage of your convictions to actually act and buy. Once having bought a share the next question is even harder: when to sell? I spoke with AlphaWealth’s Keith Mclachlan on how we know when to sell and he had lots of great advice, especially his point that a good exit starts with good entry. Hence we must know why we buy a particular stock, as knowing what made you buy goes a long way to helping you know when to sell.

Also this week:

Sanlam’s Nick Kunze talks markets, with the JSE at near all-time highs and oil on the rise; and we take a deep dive into listed property with Steven Brown, CEO of Fortress Reit, after a dismal 2020 for the sector.

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Simon,
In layman terms could anyone explain the sudden rise in the Syginia share price before release of results?
Surely this needs to be investigated.

No, John there is no need to investigate anything. The shares are going up in view of the good results and a declaration of a what in my view is a good dividend at this time while mose other companies performance has been hammered by this pandemic!

If we investigated every share price that went up, just a few ticks in volume and price, we’d have to investigate them when they drop for no ‘seeming particular reason’ as well, and that my dear friend will take everyday of every year, and there will be no end in sight.

Let’s just reserve investigations to serious matters – the share is going down now, should we investigate that too?

the stock started moving on 1 Dec which was the date they issued a trading update

Simon,
Massive increase in share price per results. Amazing??
Surely JSE investigating

End of comments.

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