MENU

How these IPOs fared 1 week later

The first week of a company being on the ASX boards can be very telling. The market doesn’t get any new information until the next quarterly or half-year result, so we can get a sense of the market sentiment from how the share does in its first week.

Of course, how the market treats a share doesn’t ultimately mean anything. But, it can be interesting nonetheless.

Here are how the latest ASX shares fared:

ClearVue Technologies Limited (ASX: CPV)

Its original proposed listing date was 25 April 2018, but it ended up listing last week.

Its principal activity is electrical components and equipment. Clearvue claims its technology allows visible light to pass through a pane of glass, while the invisible wavelengths of light are deflected to the edges of the glass where they are converted into electricity. It gives the example of turning a glass skyscraper into a massive solar panel.

ClearVue was looking to raise $6 million at $0.20 per share. The shares finished trading yesterday at $0.185, meaning the share price has dropped by around 8%. The use of technology sounds great, but it will need to deliver solid financial results to get investors excited.

Gryphon Capital Income Trust (ASX: GCI)

Its proposed listing date was 18 May 2018, but it also ended up listing last week.

Its principal activity is investing in fixed income securities.

It’s investing in a portfolio of Australian fixed income securities. The target return is the RBA cash rate plus 3.50% per annum net of fees through the economic cycle.

Gryphon Capital was hoping to raise $350 million at $2 per share. It’s currently trading at $2.01 per share, so it is slightly in the green.

Foolish takeaway

Both of these businesses could turn out into decent businesses. Theoretically turning skyscrapers into big energy producing buildings is a great idea, it really depends how successful it is at doing it. Gryphon Capital sounds like a decent choice for people looking for income, but rising interest rates could cause a problem over the next couple of years.

Instead of the above two new stocks, I’d much rather invest my money into one of these top stocks.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

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 Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.