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How these new IPOs fared 1 week later

The first week after listing can give a clear indication of how the market will treat a company until its first report is released. Last week I wrote an article about upcoming IPOs, so today I’m going to see how they fared.

Elixinol Global Limited (ASX: EXL)

After raising capital at $1 per share the price has grown to $1.82 as of yesterday. That’s a whopping 82% return in just a week and a day. There’s a lot of excitement surrounding pot stocks and it seems that Elixinol Global is also reaching those investing highs.

I imagine Elixinol’s share price will follow the pot industry up and down, unless the company announces something unique. The whole industry could do well if the Australian government further reduces regulation.

Black Cat Syndicate Limited (ASX: BC8)

The gold miner was due to list yesterday but sadly it appears not to have done so. That’s a shame because gold miners had a very good day yesterday. It remains to be seen when it will hit the ASX.

Cygnus Gold Limited (ASX: CY5)

As the name suggests, Cygnus is another gold miner wanting to capitalise on the rising gold price. Unlike Black Cat, Cygnus did hit the boards and in a big way. On the first day the share price finished at $0.30 each, which means that the share price is up 50% for anyone who managed to grab the initial shares at $0.20 each.

Small miners are generally more volatile than larger ones, so Cygnus will be even more volatile than its larger peers like Newcrest Mining Limited (ASX: NCM) and Evolution Mining Limited (ASX: EVN).

Frontier Diamonds Ltd (ASX: FDX)

The diamond miner hasn’t had the best start to its listed life. Initially, the shares were offered at $0.20 each but they’re currently trading on the ASX for $0.185 each representing a drop of 7.5% so far. Not every share price glitters, it seems.

Foolish takeaway

These four shares are going to be some of the volatile ones on the ASX, they aren’t the typical stocks that Warren Buffett would usually go for. However, an investor could make money if they can time the ‘buying low and selling high’ strategy well.

However, I'd much rather buy these top growth shares which have a better chance of delivering strong returns.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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