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We very much like Atlassian - Renaissance's Kathleen Smith

Thursday, December 10, 2015 - 03:06

Renaissance Capital IPO ETF fund manager Kathleen Smith talks about the Atlassian IPO and why the company is a better bet than other recent IPO's. Bobbi Rebell reports.

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Big tech ideas today at Lafayette debuting on NASDAQ breaks it went about such as above the expected range. The ticket or watch TE eight and here with more is Catholic and manages the Renaissance capital IET. At. Great to have you as always talking IPOs. Thank you rate at this socket gonna get a much former reception we've seen recently what's going on here what's that. Are we haven't seen an IPO with this much interest in this kind of increase in pricing since about the first half of 2015. So it's been awhile. It'll be great to see that this site you can trade well. And may put a little bit of energy into the IPO market which is really been a challenging place recently what's different about the company they're profitable for one thing. Profitable and the technology area we've seen so many companies that are growing without any regard to profits so. This one has not only strong growth. But also brings money well to the bottom line. And they have done it in any unique way. They really have no direct sales and marketing so a company without direct sales and marketing growing at 50% and profitable pretty impressive combination. And it's also a change in the recent pattern that we've seen companies that come to market lower valuations for the private market this is going back to more of a traditional model. Yes they did start out the IPO with a low valuation relative to its peers. And at its offer price got a lot closer so we think will be a lift today kind of getting in line with its peers. So. All companies have had to adjust their IPO process but this one. Think because of this that strong fundamentals is really sort of breaking this bad code we've had of a real heavy discounting. So then doesn't that add a benchmark maybe become a Bellwether for tech packages as we head into twenty sixteenths to change the perception out of it. It might we need that because the IPO investors are really looking to make money into the trading in this is going to be important. Investors have to make money that is the fuel that drives you IPO issuance engine is this an investment you recommend. We very much like the company I think valuations always a question but if you look at this business. This company is really knocked the cover off the ball they've done an amazing job. For ten years they've been profitable. And a high growth developing business with high growth the kind of culture. That I think a lot of other businesses should try to emulate. And so Helen do aftermarket. And for the long term winner or will have troubles like go out. Well I think that it's a little hard when there's a lot of enthusiasm behind these companies especially this one it can run up a bit. High growth companies tend to be volatile stocks so. We think that you still to be cautious about where you. Invest in this and have kind of a long term view knowing that people can get very excited this company's going to have to meet some very high expectations now. Partly because I think he sometimes thank you. Think he is khakis that have read capital and popular Elvis is writers.

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We very much like Atlassian - Renaissance's Kathleen Smith

Thursday, December 10, 2015 - 03:06