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Thoughts on Square IPO

Old 11-16-2015, 07:46 AM
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Default Thoughts on Square IPO

THT has some savy investors, just looking for opinions on this? According to Square it will open between $11 and $14. Anyone getting in?
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Old 11-16-2015, 12:37 PM
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The little I've read about it the more I worry something is brewing, I'm ignorant enough to be too scared to buy in at this time.
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Old 11-16-2015, 12:53 PM
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Originally Posted by strange View Post
THT has some savy investors, just looking for opinions on this? According to Square it will open between $11 and $14. Anyone getting in?

Negative Ghostrider, the pattern is full.
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Old 11-16-2015, 02:22 PM
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I use square for my business and was offered up to $2500 worth of IPO stock. I don't think I will know how much till it opens however. I normally stay away from any ipo's till they open and settle down, but figured why not at this level and $2500 max investment not a huge deal.
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Old 11-16-2015, 02:49 PM
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I would like to know how they are going to adapt a reader to take all chip and pin cards. Which are coming after magnetic strip is phased out.
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Old 11-16-2015, 02:53 PM
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I'm getting in on it. Probably 5k worth, wish I could buy more.
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Old 11-16-2015, 03:00 PM
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They are losing millions and millions of dollars a year because of their pricing model. Over 100 million last fiscal year I believe. Can't see them making a nickel anytime soon. Good luck.

Additionally, Amazon just got out of the smart phone processing biz as of January 2016 those customers have to find another processor. Amazon has gobs of money as well and couldn't make it work. Just fyi.
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Old 11-16-2015, 03:06 PM
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The problem they face is low barrier to entry from other players such as the banks and Paypal which already has a competing service. What gives them a competitive advantage other than being first mover? Is first mover alone going to make that much of an advantage? If they have no advantage, what is the stock really worth?
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Old 11-16-2015, 06:46 PM
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Originally Posted by 23Dorado View Post
I would like to know how they are going to adapt a reader to take all chip and pin cards. Which are coming after magnetic strip is phased out.
That what I was going to ask.
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Old 11-17-2015, 04:32 AM
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Originally Posted by 23Dorado View Post
I would like to know how they are going to adapt a reader to take all chip and pin cards. Which are coming after magnetic strip is phased out.
How would that be more difficult than what they have now? Insert card chip in slot vs swipe.

I wouldn't worry about that. You're talking about a company that disrupted an industry via technology. I think they can figure this out. Not to mention the chip thing has only been around for 10 years in Europe and we are just now starting to use it. By the time the strip is phased out we will be telepathically sending bitcoins to each other instead.

IPO wise unless you get in before it gets public it's risky in my experience. Especially an unprofitable tech company. Depends on your strategy. Buy & hold? Trade to make a few bucks?
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Old 11-17-2015, 05:15 AM
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Originally Posted by 23Dorado View Post
I would like to know how they are going to adapt a reader to take all chip and pin cards. Which are coming after magnetic strip is phased out.
They already have it.

https://squareup.com/reader?gclid=Cj...p+reader&pmt=e
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Old 11-17-2015, 07:48 AM
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Originally Posted by crazybeard View Post
How would that be more difficult than what they have now? Insert card chip in slot vs swipe.

I wouldn't worry about that. You're talking about a company that disrupted an industry via technology. I think they can figure this out. Not to mention the chip thing has only been around for 10 years in Europe and we are just now starting to use it. By the time the strip is phased out we will be telepathically sending bitcoins to each other instead.
I wasn't aware they had chip reader. It wasn't on the website last time I checked. Getting the American consumer to enter their CC/debit pin code into a merchants cell phone may be a challenge. And as you mentioned point to point Apple Pay style payment is going to make any reader obsolete.
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Old 11-17-2015, 08:45 AM
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I use them in my business as well. I'm not real educated in the stock market game, i have a chance to get in before it opens and figured it might be worth a shot for a short gain.
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Old 11-17-2015, 09:46 AM
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Originally Posted by strange View Post
I use them in my business as well. I'm not real educated in the stock market game, i have a chance to get in before it opens and figured it might be worth a shot for a short gain.
My suggestion then is only put in as much as you are willing to completely lose. As you mention, it is quite the game.
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Old 11-17-2015, 10:19 AM
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The IPO is tomorrow and I believe it works like this:

Customers of Square received an offer to buy up to $2500 or about 200 shares at the IPO placing. At market open the shares will not be traded until a initial price is set. They do this by essentially going around the table of principals in the IPO saying "hey, we have a bid for x shares at11.00, anyone want that?" If no takers then they go up to the next bids until all the bids are filled. The stock then goes public and the following transactions are on the secondary market. The worst thing you can do is place a "market" bid for shares as all that do get matched in the following seconds after trading starts which spikes the price. At that point, it's generally a great time to sell if you want to flip thus you generally see a pretty large drop in the first 30 minutes of the stock being openly traded. If it looks good and you think the company has hope then hold on. The only way the stock goes to zero is if it eventually gets delisted.

I'm in for the 2500 just because. I honestly don't have super high hopes but it will make the day more interesting. I have not seen a company offer this before and you can take it one of two ways. One, they are getting customers talking about the stock and giving them a nice break or two, the market was weak and they figured this was a way to shore up the IPO valuation.
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