Hi there,
Typically, I am not a fan of IPOs - too much uncertainty and volatility for my liking. However, I had been watching Dye and Durham for some time after a few false starts. I attempted to get in at the IPO price, but was not successful (naturally as retail investors rarely get IPOs if its a good one - they usually only get stuck with the bad when institutional investors stay away). I ended up picking some up on the day of the IPO and have been watching it ever since.
The problem with IPOs is that they tend to be speculative and unpredictable. It is why we tend not to recommend IPOs, but we know there is interest which is why we will be introducing an IPO Centre.
In terms of DND, I like the company and compare its potential to that of REAL and DCBO. SaaS companies that operate in a niche area (Real estate for REAL, Learning for DCBO, Law for DND) that were in big need of an overhaul. There exists plenty of opportunity for DND to expand and the industry is ripe for consolidation. In Canada, it has already established itself as best in class is well positioned for growth.
This being said, I think it is a bit overextended here and it is in overbought territory with a 14-day RSI of 77. This means, there is the potential for a short term correction. Likewise, the company hasn't yet to report earnings and it will be interesting to see how it performs inline with estimates. Most every one of these SaaS companies have exceed expectations - if DND disappoints, it could result in a big drop.
I still hold the company, but am not adding at these levels. I'd only consider adding on a dip, or if they post strong earnings. Long-term however, I think the company will be a winner at these levels but as with most of these SaaS companies that are seeing incredible price momentum, it will be all about execution moving forward.
Mat