Marley Spoon IPO brings takeaway-as-a-service to investors

Shares in meal delivery business Marley Spoon (ASX: MMM) closed at $1.27 today after listing at $1.42, with around $250,000 of the stock traded. The IPO is noticeable as investors are actually buying chess depositary instruments that represent a 1/1,000th interest in shares in the German parent company that raised $70 million from local investors to grow its market share Down Under.

Marley Spoon boasts of its subscription-based model meaning it could be classed as takeaway-as-a-service in that customers receive healthy meals that are ready to cook every week or more regularly. However, it’s yet to post a profit and exists in the fiercely competitive sector of online food delivery.

In financial year 2018 it’s forecasting a net loss of EUR32.3 million on revenue of EUR93 million as it invests for growth via marketing expenses, online promotions and more staff.

It only started up in 2014 and as such has a limited trading history, which means it remains a speculative bet I’d be inclined to avoid for now.

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 Tom Richardson has no position in any of the stocks mentioned.

You can find Tom on Twitter @tommyr345

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.