Five reasons not to buy into Merlin Entertainments IPO?

Wise_Investor_2

When you guys mention 'blue-chips', are you talking about the FTSE 100 generally?

Do you think easyJet, Sportsdirect etc and all the other high-flyers in the £4bn-£6bn market cap region have really all reached their peak?

I'm amazed at how much Ocado has risen year-to-date, something like 400% - just when everyone thought they were down and out!!!

Wise_Investor_2

Slight update on this, another newspaper journalist called 'Midas' says these are a buy in his view: investoo.co.uk/a-case-for-investing-in-merlin-entertainments-ipo-from-midas/

Reason being growth in turn,profits and visitor numbers despite recession over past 5 years.

Still doesn't mention the debt though!!!

So it's 1-1 at the moment.

MABLE

I was already to invest in Merlin and had put an order in. However after watching the Questor video I have decided not to. Questor were wrong about Foxtons IPO but looking at the figures of Merlin I may have had a lucky escape.

brasso

I will probably avoid Merlin but I suspect that for anyone with a trading approach, there is a short-term profit to be made. The fundamentals, particularly that debt, are not very appealing but there is something akin to mild mass hysteria (if you can have mild mass hysteria) at the moment. I can see a lot of speculators jumping on this horse and giving it a good old thrashing for a few days at least. I bet there's money to be made if people are quick.

But a few months down the line, and I think that early investors might be feeling a bit like they're on one of those theme park big dippers.

blinko

Foxtons set to enter the 250 share price 312p odd

gt94sss2

The Merlin share offer is now closing early - the deadline has been changed to this Thursday - instead of next Monday.

The BBC are saying its been very popular with institutions.

Regards
Sunil

Party_Animal

I was looking to buy. Going to hang on a couple of days. Wasn't planning to keep them, just sell if they make a profit and reinvest elsewhere.

srcandas

Well the early close has added some spice. If the institutions are serious there could be a quick profit to be had. For sure if it wasn't going I can see no logic to an early close. And will that encourage a late gaggle of us minnows to jump in?

I'll probably do a little dabble if nothing else comes to light before the close. But can't get overly excited about it based on views of the finances/debts :beer:

blinko

srcandas wrote: »

Well the early close has added some spice. If the institutions are serious there could be a quick profit to be had. For sure if it wasn't going I can see no logic to an early close. And will that encourage a late gaggle of us minnows to jump in?

I'll probably do a little dabble if nothing else comes to light before the close. But can't get overly excited about it based on views of the finances/debts :beer:

Thats a good point, they would extend it if they were having trouble allocating the stock.

the EBITDA is fantastic, but just as great as it's ability to generate cash is so its debt sucks, otherwise it would be a no brainer.

Maybe we are all high on royal mail floats and in reality this is a typical float.....

Antimoron

Party_Animal wrote: »

I was looking to buy. Going to hang on a couple of days. Wasn't planning to keep them, just sell if they make a profit and reinvest elsewhere.

That's why you buy now - if that's the aim.

I'm not ashamed to say I'm in this one for the short term.