I would argue differently. The TWD IPO is, in fact, very successful, from a certain perspective. I have not had the time to find a website that shows TSX listings in order to follow the IPO, but a few messages that I've read on here have suggested that the opening price was well above $2.50 (did I read $4)? Then I read a message here that said TWD has lost half of its value so far today.
I visited the Tweed website late last week to scope out the IPO. Their website said that they would be listing this week, with shares under a dollar. If I understand the way a listing works, then the underwriters buy up shares from the company, and then they sell the shares to the public during the IPO. I may be COMPLETELY mistaken, and if so, please correct me so that I understand better. That aside, the underwriters were very aware of the amount of interest that this IPO had garnered. In fact, Steward, didn't you mention in a post that you had spoken to your broker yesterday or last night, and that he/she said that they had been getting calls all day about the listing? Maybe it wasn't you. In fact, now that I think about it, it probably was someone else. Regardless, the underwriters saw the chance to make a quick fortune, and jacked up the pps WAY over what it was worth, and what the company itself felt it should be listed at. A drop was inevitable. It will stabilize lower and come back up. Tweed has a crop ready for sale. They will make a profit this quarter. That doesn't mean that they already had the customer base - that has to be established starting now. They couldn't have had a large customer base before April 1st anyway. I would argue that this will help FITX in the long-run because TWD will do the dirty work insofar as establishing a clientele is concerned, and give FITX the chance to ride TWD's coattails, as well as create competition and variety against TWD.
Furthermore, look at how much attention the IPO has been getting! How many shares have been traded in this IPO this morning?!? I think that the idea that "even bad press is good press" is particularly applicable to this situation, if one is willing to consider FITX, in fact the entire MMJ industry, with a long lens. The TWD IPO represents a success because a company that wants to do, in fact will be doing shortly, what FITX wants to do, is going public, is raising interest, and will have a chance to get a product out and report earnings, probably a quarter ahead of FITX (assuming, of course, that things go well with obtaining the license). This IPO is not bad news for FITX. It is good news, and will give FITX many windfalls worth of investor interst in the near-to-mid future.
