HOT - Hot Copper IPO

miniroo

miniroo

Well-Known Member
Silver Stacker
What do you guys think of the Hot Copper IPO?
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It does seem a little oddball for a forum to do this and there's a lot of things that can change quickly, especially since it's a forum related to the stock market.
It seems HC's long term members are a bit up in arms because they feel excluded from the benefits considering it's members that make a forum, without the regulars posting information then there'd be no forum to go to, but I guess it's similar to facebook in a way, it would only be a website unless members actually made it something.

anyways, I can see possible issues like share holders trying to increase HC's revenue by clicking on ads a lot, this can be a problem with google and they could esily lose their google adsense account if google sees too many clicks coming in all of a sudden, much bigger websites have lost their revenue because of this.

I dunno, the prospectus doesn't overly excite me but I guess at least they do have a revenue stream in place, unlike the many mining companies that list based on potential of a piece of dirt.

What do you think?

It could be fun to have a financial interest in a forum one visits, i'd certainly be clicking on a few ads everyday.

http://investors.hotcopper.com.au/
 
Hot Copper is uniquely position in the Australian market, is cash flow positive and revenues have been increasing year on year.

Concerns about Hot Copper is that expenses are forecast to grow considerably in FY17 primary due to increased employee wages, forecast revenues may not be realised and more importantly about half of the capital raised from the IPO will go towards the acquisition of Report Card increasing the risk and reducing retained capital.

If you have a few thousand dollars to invest then the upside out weights the downside.
 
miniroo said:
anyways, I can see possible issues like share holders trying to increase HC's revenue by clicking on ads a lot, this can be a problem with google and they could esily lose their google adsense account if google sees too many clicks coming in all of a sudden, much bigger websites have lost their revenue because of this.

It could be fun to have a financial interest in a forum one visits, i'd certainly be clicking on a few ads everyday.

http://investors.hotcopper.com.au/
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You'd sabotage your own investment? ;)


I think beyond advertising revenue they'll introduce more and more subscriber based income, pay to view etc. Information is money.
Build a bank and buy stuff. Stuff relevant to their info industry.

If they were to introduce a fee of $99.99 for 1 year sub to even look at the forum, I wonder how many of their 235,000 current members would pay?

100% = 23.5M PA
50% = 11.75M PA
...
10% = 2.35M

It would die off fairly quickly.

Block out sections of the forum/cap posts per timeline/access to best tipsters/free newsletter etc. etc. etc. boundless really.

People may/won't pay to join, but a good percentage may for pay for information where they think they may be receiving an edge. People may pay where their excessive posting upramping/downramping has made themselves alot of money and are all of a sudden capped.

HOT has to the best handle. I'd buy that @ 10c
 
I do like a couple improvements they are looking at, one being more mobile responsive which is a very important thing today with so many using mobile phones to browse and interact online.

The other is possible forum membership which allows members to browse ad free but may also provide more features, I doubt there would be total paid membership, one of their major selling points is they are a very high traffic site, some websites would love to have their traffic numbers.

Yeah I think there's a lot of people out there who would buy membership if it means that slight edge as you say, if we take away the regular posters who are constant visitors, people in the business of stocks wouldn't blink an eyelid to pay a small membership fee, especially if HC can offer a mobile phone app that gives them live alerts etc.

What would be good is if they had a buy/sell feature linked to commsec or somehwere so every buy/sell earns a small fee for linking the transaction from HC.
 
miniroo said:
What would be good is if they had a buy/sell feature linked to commsec or somehwere so every buy/sell earns a small fee for linking the transaction from HC.
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Like a deal done with Chi. Or create your own platform.

Good call.

10-20% discount on all trades to paid up members.... etc.
 
People will just create a free alternative if they want to start charging members to use the forum killing its business. I certainly wouldn't pay to use HC as I rarely visit the forum and won't be taking part in the IPO.
 
I don't use it that much, but the value for me has been like any online forum - reading through the posts, learning and contributing. There are a lot of pumpers and bs but a lot of good stuff too.

Would I pay to use that? No way.
 
miniroo said:
It could be fun to have a financial interest in a forum one visits, i'd certainly be clicking on a few ads everyday.
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I have no interest in HC.

I got into the habit of clicking on an advertising Ad here every time I visit to help keep this forums running expenses covered.
 
Anyone looked into this ipo further?
Thinking of going for it as I have never bought into something from the ipo so just wanted to see how it all goes.

It seems easy enough as you can just apply online instead of sending in forms.
 
From the IPO prospectus.

Hot Copper was incorporated on 7 April 2016 with $1 in issued capital.

The Offer is for 110,000,000 new Shares in the Hot Copper company comprising:

60,921,166 Shares at $0.20 per Share to raise $12,184,233; and
49,078,834 Shares to be issued to the shareholders of Report Card as part consideration for the acquisition of 100% of Report Card.

My analysis.

If about 44% of capital raised is going to Report Card then a fair value for Hot Copper is between $0.10 - $0.11.

Personally I wouldn't pay more then $0.10 a share but I'm sure that there are lots of people happy to pay $0.20 a share.

If you have money that you can afford to lose than IPO's can be exciting.
 
Skyrocket said:
I have no interest in HC.

I got into the habit of clicking on an advertising Ad here every time I visit to help keep this forums running expenses covered.
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Hahhahhhhaha I will keep this in mind. Help out the up keep.
 
I'm happy with what I have now stock wise and have put profits left over into HOT.

Don't particularity care about the admin, it's a flourishing website with tonnes of traffic.

Mining stocks are ok but reliant on a lot of things whereas hot copper will thrive either way, mining stocks rise, HC gets traffic, mining stocks crash HC gets traffic.

long term it will will be good and it'll be the first stock I enter at the ipo, if the price stays steady on open i'll buy more.
 
Massive over-subcription, buyers will be kicking the door down come open day Thursday.

Might be a good one day profit getting in at start of trade, very happy to be a holder of the ipo.
 
Ipv6Ready said:
Skyrocket said:
I have no interest in HC.

I got into the habit of clicking on an advertising Ad here every time I visit to help keep this forums running expenses covered.
Click to expand...

Hahhahhhhaha I will keep this in mind. Help out the up keep.
Click to expand...


I missed reading that post.

Exactly! ;)
 
No it'll be free as usual, maybe they might have a premium membership that will give access to more forums, like here, pay 1oz silver, get more forums and ability to edit posts etc.

But that's comparing apples to oranges, hot copper is a giant forum compared to most others, whirlpool though is the main man in Aust'
these types of forums can command very high advertising fees from corporate advertisers, simply with traffic numbers.
 
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