Wang & Lee (NASDAQ: WLGS) stock did not have a happy first day after the IPO. Priced at $5 it rose to $5,80 and then rather crashed 45% to close at $3.10. As we already pointed out about that U Power IPO, this result, looked at in isolation, would actually be a victory for the company's investment bankers. For they managed to sell something at $5 when only hours later it was worth $3,10. That's success, WLGS got the money at a higher price.
Of course, by the same measure the rise premarket today gives us a rather different picture. For the WLGS price has risen 216% (undoubtedly something that will change more) to $9.65. So those bankers sold yesterday at $5 something that could have been sold today at near twice the price. Yes, we know, that's not the way most people look at IPO performances. But from the point of view of the company - and its bankers - this is the correct way. A price that falls after an IPO is a success, one that rises from the listing price is a failure.
Wang&Lee share price from NASDAQAs to what Wang & Lee actually does, it's a building and construction design and services firm in Hong Kong. Which might go some way to explaining the volatility here. No one really is quite sure how the Mainland property market is really doing and given the ever increasing economic integration with Hong Kong, well, uncertainty is uncertainty.
For us as traders here there's really no useful advice that can be given. The stock's been on the market a whole day so we've no track record to speak of. Everyone's working on some mixture of trust and hope here. It's possible to think of a momentum trade but that's really all the information we've got. And even then we don't know which way the momentum's going to be going - it's managed both ways within 24 hours after all. It may even be true that Wang & Lee is simply an excellent little company crying out to be invested in. But at this stage it's betting, gambling, and nothing else.
