Evaluating Snap Following The Initial Public Offering Harvard Case Solution & Analysis

Evaluating Snap Following The Initial Public Offering Case Solution

Kemp was the securities administrator of a $ 400 million technology fund, at Sand Hill Road Capital, and had purchased 500,000 shares of Snap in the Initial Public Offering. With nearly $ 3 million (= ($ 22.74 - $ 17.00) * 500K shares), he was likely to buy more. But remember to see a report written on March 14 by Kip Paulson, Cantor Fitzgerald's online analyst at a price tag of $ 18. And under-selling (sales) recommendation based on cover about Snap's unrestricted business framework, unproved management team, slow growth, and wild competition from rivals such as F.B / Insta and Twitter. As a new portfolio manager with a good track record of 3y, Kemp wondered if it was now time to get his profits or double down and buy more shares.

Did the underwriters of the Snap IPO do a good job? Explain

Although Snap IPO authors had a tough job, they wanted to make sure the IPO price wasn't too high or too low before it reached the public market, as the real investors and founders of the company demanded a fair deal.

As they were doing a good job despite all the tough factors that they faced but as Underwriters played a number of roles: they were actively involved in the company and its financial position; help in preparing and submitting the documents required to achieve social value; build a combining of other trading firms to distribute the shares; and combining with possible investors to considering interest on the offer and determine the amount of the offer. Following the IPO, sub-administrator often buy stocks to stabilize prices and provide research protection to customers.14 of these services, supporters to Snap - a group of 26 buyer firms - would receive 2.5% of the proceeds from the offer . The purpose of the Contribution that was to increase the company's revenue and improve its financial stability.

What is your recommendation:  Should Elizabeth Kemp buy or sell the Snap shares.

Elizabeth Kemp sat at her desk thinking what to do. With so many new purchase guidance, Snap seemed ready for a further price increase. Yet a few critics remain doubtful. Now that he had returned to his investment, he wondered if it was time to recover his profits or double his purchase.

While thinking about what to do, he recalled his experience with Go Pro's IPO in the summer of 2014: he bought shares for $24 and closed 30% on the first day of trading. After the end of the period of calmness, he sold all his shares, in part because of strong ratings from combined with examiner and subscribers.

So I would recommend Elizabeth should buy the snap shares because as they are undervalued of market value that is 22.74. And Snap Stock's Fair Market Value on per share is 27.94................................

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