Goodbye, 2016…
It’s about to be a new year, we’re about to have a new president, and Wall Street is all abuzz as the planets seem to be aligning for a prosperous 2017.
There were some developments this past year that could bode very well for investors over the next 12 months (at least) and we could see a former “cash register” of an industry heat up again after spending the better part of a decade on ice.
You’re probably dying to hear what that industry is…
But a little bit of anticipation never hurt anybody.
First, let’s talk about the kindling going into this fire…
If there is one thing the end of the dotcom era and the crash of 2008 taught new startups, it was that in order to succeed – they’d have to get back to the basics.
With VCs not willing to potentially lose money – startups needed to focus on sustainable growth – controlling operating expenses while fostering a positive cash flow.
Meaning many of the companies in the IPO pipeline are financially solid and have investors chomping at the bit to get a piece of some of these quality stocks about to debut.
There are possibly dozens of strong startups with top tier management and incredible products that are reaching $50-$100 million or more in revenues. And…
Are growing at more than 30% annually, and most have been in the black for years.
Couple that with some regulatory easing and an incoming businessman as President – and we may be looking at the biggest and best class of IPO-ready companies that we have ever seen.
Understand, before it was announced that Donald Trump won the election, most people in the tech hotbed of Silicon Valley thought it would go the other way – and they may be surprised that the stock market has continued to rally.
Risk is back on the menu and while there were only 13 U.S. venture-backed companies in the tech sector that went public in 2016 – most were winners – with the industry IPO average returning investors roughly 56%!!
In fact, technology was the best performing IPO sector of the year – even beating Wall Street’s potential IPO darlings like Uber and Airbnb.
Software, not service, is surging…
And we may just be about to revisit the heyday of the dotcom era.
With all that being said…
What’s next?
Well, like I said, I’m pretty confident that investor demand and a profit-minded atmosphere could make 2017 the strongest tech IPO market we’ve seen since the dotcom boom of the late-1990s.
In fact, I wouldn’t be surprised if we get a chance at anywhere from 30 to 50 tech startups going public over the next 12 months.
It’s going to be important to be there first…
I’ll be sure to let my GorillaTrades members know first of anything I think they’ll be able to make money on.
I’d love to have you with us for the turkey shoot.
But I understand if you want to go at it alone.
However, I will be preparing for an incredible year coming up… I would suggest you do the same.
Have a happy and safe New Year!
“Certain bodies… become luminous when heated. Their luminosity disappears after some time, but the capacity of becoming luminous afresh through heat is restored to them by the action of a spark, and also by the action of radium.” – Marie Curie
