Applied UV (NASDAQ: AUVI) is stepping onto the NASDAQ next Monday through a traditional IPO. However, the biotechnology company is receiving little to no coverage in the lead up to its big day. The absence of market commentary is not necessarily a bad sign as retail investors often hear about a company after the big event. Thus, today’s article will breakdown the AUVI business model for our readers and explain whether we see value in an investment come IPO day.
1. What you need to know about Applied UV before their IPO on Monday 2. Does YIG see value in an Applied UV IPO investment?
Breakdown of Applied UV ahead of IPO
Applied UV focuses on creating and acquiring the technology from other companies to prevent infection in the healthcare, hospitality, commercial, and residential markets. Radiation is a common method when it comes to destroying bacteria, viruses, and infections. AUVI uses Ultra Violet light (UVC), a form of radiation, around mirrors and surfaces to prevent infections within hospitals and residential markets.
Applied UV’s product offering is better understood by breaking down its subsidiaries SteriLumen and Munn Works extraordinary Mirrors. Munn Works solely focuses on manufacturing fine mirrors and frameworks for artwork. According to customers before the IPO Munn Works Mirrors receives the gold standard in terms of quality.
However, SteriLumen’s infection prevention technology is sparking the interest of investors pre-AUVI IPO. SteriLumen has developed UV light devices to kill healthcare-acquired infections (HAI’s), including the coronavirus. Hence, the Applied UV IPO hype. SteriLumen’s devices include UV mirrors and drains, allowing the subsidiary to serve more than just the hospital market. Also, the strong management at AUVI is reassuring investors of a probable bullish first financial year post IPO.
Does YIG see value in an Applied UV IPO investment?
Before I begin I am obliged to remind our viewers that this is not advice but rather investment commentary from extensive research
Short: A short-term investment could be viable. However, investors must understand IPO market fundamentals first (opinion not advice)
The lack of media coverage is a double-edged sword. On the one hand it allows investors who do their due diligence to be the first in the door. However, no ears and eyes in the lead up to AUVI’s IPO means volume could be low on Monday. Considering volume is a significant driver of price action, investors could find they invest on Monday but AUVI trades flat.
Resistance and Support levels come AUVI IPO
Moreover, the lack of a defined sentiment for Applied UV’s IPO makes it difficult to understand resistance and support levels. Because all we know is the listing price of $5. Investing without resistance or support is like walking blind. The rule of thumb is unless there is a significant amount of hype to drive up the price on IPO day, you wait until end of AUVI’s debut to obtain resistance and support levels.
Overall, investing after AUVI’s IPO day is the smartest play (opinion not advice). Because you will have the resistance and support levels to make a more informed investment. The IPO will also increase Applied UV’s media coverage and thus trading volume for the following days should be higher. Not to mention that AUVI’s ability to serve part of the coronavirus market could get out on IPO day.
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The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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Written by Patrick McLoughlin, Senior Manager of YIG