In the overview of 2019 IPOs we saw some with a very high return, like Beyond Meat, but also disappointing ones with a negative return. Sonim was the most unfortunate one in the list. The information was taken from IPOScoop and of course I checked if it’s still the same. It is: nearly three quarters of the IPO end of day position was lost for Sonim (ticker SONM), the manufacturer of heavy duty phones. Sonim is a well-established company with a much longer track record than some of the other companies in the IPO-list. It was founded in 1999 (20 years before the IPO) and the current CEO started in 2004. One of the co-founders is still a member of the board of directors.
Photo by Alexas_Fotos on Pixabay.
The IPO was in May and financial statements for Q1 and Q2 are available, but Q3 not yet. For a quarterly comparison it would be nice to have information about Q4 2018 as well, but it isn’t. Of course the balance at the end of 2018 will be the same, so the only issue is with Revenue & Profit and therefore I took the average, being the annual results divided by four. This leaves us with three quarters and for those we can come up with a 3D-graph. During the next period, when we are adding other IPOs from the list, another quarter for Sonim will be available and added.
We don’t analyse or advise, but only visualise. There is information on Sonim’s disappointing stock-price, e.g. by NASDAQ and Benzinga. Be aware that these articles are from September and the price of Sonim-shares went further down during the month after.
The graph, showing the three quarters (including Q4 2018, showing the average quarterly revenue and profit for 2018) is interesting.
The shape for 2018 looks rather healthy, although the equity is a little bit low (high gearing) and the net profit rather thin. Q1 2019 is a different story. The huge loss ate almost all of the equity and it’s good that the IPO was coming up to boost it again. Buyers must have been confident in the quarter after, because the shares were sold at the planned price and even went up intil mid-June. Then a gradual decrease can be observed. After a second quarter with higher revenues but still an impressive loss, the price didn’t go up again.
That’s it for now. The next time it would be good to have an example from the IPOs with an extreme increase of the value of their shares. If you want to know more about the AnRep3D-geneator, please have a look at our website or visit our youtube-channel, showing all details of AnRep3D in short videos of a couple of minutes.
Do you want to try it yourself? Download the free 3D-graph generator package!