Unless the government is the selling shareholder, it is usually a good idea to stay clear of new flotations or initial public offerings (IPOs) on the stock exchange. That’s because the seller is usually cashing out a high price, especially if the owner is a venture capitalist or private equity company.
Just Eat (LSE: JE) is a classic and extreme case of this. The company acts as a middleman, allowing customers to order takeaway food over the internet. The plan is to scale the business across the world and make lots of money.
Given that it is [...]
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