A] The Post-IPO Playbook 1) Pre-IPO Window Dressing Companies often inflate margins or push sales (channel stuffing) to look attractive. IPO pricing bakes in these peak numbers. 2) Elevated Base Elevated base leads to weak reported growth. Market reacts with disappointment

B] Ways to buy in these bombed out IPOs There are multiple ways of playing these boomed out IPOs which can be used by different styles of investors depending which approach suits one.

1) Trend change : Structurally when the stock stops making lower lows and the stock makes a rounding bottom over the trend . This is often supported by a favourable results base or hyper inflated base of financial results . Past examples such as Policybazar , zomato where these

2) Improved financial results : Post inflated and channel stuffed numbers and a phase of poor financial numbers the financial base gets a benign base and favourable base for improvised financial results . One can play them when the financial numbers start turning around . Case

3) IPO Base breakouts: IPO Base Breakouts is another way to play these companies . As IPO breakouts are often exhausted of forced sellers these are also horizontal breakouts and bagged by good financial numbers these IPO based breakouts leads to a healthy and strong stage 2. One

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@soicfinance look for price recovery, strong fundamentals, and low debt

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