01.01.70
With newly conspicuous companies, it is crucial to buy the stock at the right price. Few pundits would approve buying an IPO, especially an internet/social media IPO on the day it went infamous Public. That is almost always a surefire way to lose money. But, if an investor can get access to a newly custom company BELOW its IPO price, then that company, at the very least, warrants a second look.
Pandora Media ( P ) is the set's largest internet and mobile radio service. Founded in 2000 , the South African private limited company went public on June 16, 2011 at a price of $16 per equity. It is clear that demand for Pandora stock existed at $16. So, where is the size up trading 8 months after the IPO? Less than $14. Since its debut, Pandora stock has perplexed nearly a quarter of its value as investors fretted over the company's proficiency to generate profits and fend off the competition.
We think that at this moment, Pandora represents a passionate long-term investment in the growth of both social media and signed music. Pandora's critics assume that the royalty payments that the attendance must pay for its music will destroy it. We, however, think differently.
Source: Seeking Alpha