Stonk Enjoyer - TV Tokyo Edition

We interrupt the usual flow of What am i HODLing? (short video + microblog every Wednesday) for a special edition.

What am i HODLing: TV Tokyo Edition

It’s every girl’s dream to get interviewed on the Japanese news.

Last week all my wildest dreams came true.

A Producer from TV Tokyo contacted me about my tweets about the ARM IPO.

I agreed to do an interview and here it is!

1. I swear I only said Semiconductor space 4 or 5 times total they just happen to use half of those

2. I totally forgot to clean my room and take off my old college sorority sweatshirt before being on TV in another country

What a coincidence ARM fits perfectly into the series on Thematic investing I was already doing.

Thematic position: Arm Holdings

Ticker: $ARM

Position Size: 1 share

% of Portfolio: <1%

ARM is a semiconductor giant from the UK that went public last week.

I put it all over my twitter from start to finish on how I got to be a part of the IPO distribution.

In the past, IPOs weren’t accessible for retail investors. Robinhood changed that. They #democratizedIPOsforall and allowed retail investors to put in bids for companies which decided to allocate some of their newly listed shares to the platform for retail investors.

Hold up… What is an IPO?

IPO or initial public offering is the process of going public for a company to trade on the primary exchanges. Companies do this to raise more money through this liquidity event.

Before a company goes through the IPO process, it is a privately held company and not traded on exchanges such as the New York Stock Exchange or the NASDAQ (two of the largest public exchanges).

Once the company undergoes the IPO process (which is quite lengthy and taxing) then investors like you and me can trade shares of it to our hearts desire.

It’s a new phenomenon since 2021 that retail investors can participate in the process of getting IPO shares pre-trading. Now that Robinhood made this available, I put a bid in for one share of ARM.

When you put your bid in for one share, you aren’t guaranteed to even get it. But if they happen to randomly select you, congrats! You are now an IPO shareholder.

Sure enough, my order was filled and we were off to the races. It’s been trading for only a few days now and things are…. okay.

Retrospective:

After day two of trading, ARM is up 13%. So I’ve made like 6 bucks on my one share.

I would not have made a big buy order or want a large position in ARM because ultimately, newly public companies can be very volatile and often have a lot of downside following their IPO date.

With Softbank holding a large chunk of ARM and really needing a win (they’re having a tough few years with their portfolio) I think there will be a selloff as soon as they can compliantly unload shares.

Also, a 52 Billion dollar valuation going through this IPO process is a little rich for my blood for a company that isn’t seeing growth in revenue over the most recent few quarters.

I loved having a share but wouldn’t want to much more.

I’m along for the ride and the vibes.