Qudian: China-Based Online Credit Provider IPO

[ownyourfuture]

https://www.reuters.com/article/us-qudian-inc-ipo/china-based-qudian-inc-files-for-ipo-idUSKCN1BT2PM

(Reuters) - China-based online credit provider Qudian Inc said on Monday it has filed for an initial public offering of up to $750 million of class A ordinary shares represented by American Depository Shares (ADSs), according to an SEC filing.

Just received an email from Fidelity concerning this IPO.



Anyone familiar with the company and/or investing in Chinese ADP's ?
The last foreign stock I owned was Alcon (eye care surgical equipment)

 

[OldShooter]

If they are offering the IPO to random retail investors it is only because they can't find anyone else to take it. Run, don't walk.

IPOs that are thought to be good are offered first to a brokerage house's best large customers. If not sold out, then to second-tier customers, etc. down the food chain. Offering to random retail customers is a desperation move for deals that no one else will take.

The fact that it is a financial firm in China only makes the deal more stinky. China has big banking problems that they are trying to work out; lots of bad loans to state-owned enterprises, lots of debt taken on by local governments without adult supervision. Xi's fear is that many banks will go under if the problems aren't worked out quietly and carefully.

 

[DrRoy]

If they are offering the IPO to random retail investors it is only because they can't find anyone else to take it. Run, don't walk.

IPOs that are thought to be good are offered first to a brokerage house's best large customers. If not sold out, then to second-tier customers, etc. down the food chain. Offering to random retail customers is a desperation move for deals that no one else will take.

The fact that it is a financial firm in China only makes the deal more stinky. China has big banking problems that they are trying to work out; lots of bad loans to state-owned enterprises, lots of debt taken on by local governments without adult supervision. Xi's fear is that many banks will go under if the problems aren't worked out quietly and carefully.

+1

 

[ownyourfuture]

IPOs that are thought to be good are offered first to a brokerage house's best large customers. If not sold out, then to second-tier customers, etc. down the food chain. Offering to random retail customers is a desperation move for deals that no one else will take.

Now I feel bad, I had no idea I was so far down on the food chain
But seriously, thanks for the input. I'll put it in a watchlist.

 

[ownyourfuture]

Investing rule #17
Don't look for IPO advice at an early retirement forum.

https://finance.yahoo.com/quote/QD?p=QD&soc_src=mail&soc_trk=ma

 

[calmloki]

Cracks me up. Ain't nobody know nothin'. I should throw a bunch of bucks at this and watch it dive. or maybe, more likely, will do nothing and continue making and losing little.

 

[OldShooter]

Investing rule #17
Don't look for IPO advice at an early retirement forum.

https://finance.yahoo.com/quote/QD?p=QD&soc_src=mail&soc_trk=ma

Worse, those experienced old bears will also tell you that it is terminally stupid to look at 30 days worth of trading and think that you have worthwhile information.

They will also tell you that individuals trading individual issues are more likely to fail than to succeed. TDAmeritrade's individual investors were up 1.5% last year before survivorship bias is considered. Certainly they were negative afterwards. This versus the US market that had a total return of 14-15%.

But, hey, losing as an individual stock trader is a lot of fun and you don't have to make the drive to a casino to lose your money.

 

[ownyourfuture]

Worse, those experienced old bears will also tell you that it is terminally stupid to look at 30 days worth of trading and think that you have worthwhile information.

They will also tell you that individuals trading individual issues are more likely to fail than to succeed. TDAmeritrade's individual investors were up 1.5% last year before survivorship bias is considered. Certainly they were negative afterwards. This versus the US market that had a total return of 14-15%.

But, hey, losing as an individual stock trader is a lot of fun and you don't have to make the drive to a casino to lose your money.

Shooter:
All I did was start a thread asking if anyone here had any thoughts/info on the company that was going public, & I had been offered shares in their IPO.

You offered no thoughts on the company itself, only advised me to
"Run, don't walk" away from this IPO.

After the stock skyrockets on it's 1st day of trading, I reply with a 100.00% tongue in cheek response stating that no one should ever seek IPO advice at an early retirement forum & it seems you took it personally.

1: I don't measure my investment results every 30 days.
2: There's no law that says an individual can't hold at least a few individual stocks, and/or actively managed mutual funds & still do very well.
3: If you lose every time you go to the casino. you're doing something wrong.

 

[OldShooter]

... After the stock skyrockets on it's 1st day of trading, I reply with a 100.00% tongue in cheek response stating that no one should ever seek IPO advice at an early retirement forum & it seems you took it personally. ...

Sorry. (a) I missed the fact that you were the OP and (b) hence didn't get the sarcasm.

Rather, I completely wrongly thought the poster was tweeking your nose for not buying. So I was responding to that interpretation.

Re individual stocks and casinos, there are plenty of people who win. That's why casinos buy billboards with pictures of winners. It's just that the majority of players in either game do not & I have learned to play odds, not hunches. Kind of like card counting in blackjack. I served my time playing hunches and at times had a lot of fun and success, but I eventually figured things out. Took me 30 years, so that says I am not too bright. But now my passive investing lets me beat the majority of traders & I am maybe too often inclined to argue to others what it took me all that time to learn.

Again, sorry for any offense.

 

[MichaelB]

You guys putting some extra grouchy powder on your breakfast cereal?

 

[ownyourfuture]

Sorry. (a) I missed the fact that you were the OP and (b) hence didn't get the sarcasm.

Rather, I completely wrongly thought the poster was tweeking your nose for not buying. So I was responding to that interpretation.

Re individual stocks and casinos, there are plenty of people who win. That's why casinos buy billboards with pictures of winners. It's just that the majority of players in either game do not & I have learned to play odds, not hunches. Kind of like card counting in blackjack. I served my time playing hunches and at times had a lot of fun and success, but I eventually figured things out. Took me 30 years, so that says I am not too bright. But now my passive investing lets me beat the majority of traders & I am maybe too often inclined to argue to others what it took me all that time to learn.

Again, sorry for any offense.

Thanks for the clarification Shooter