Key insights
- AVEX, a newly IPO'd drone company, shows promise with US and EUCOM deals but faces risks. The stock's volatility post-IPO and the impending share lockup expiration in July, allowing majority holder Madison Dearborn to sell, could pressure the stock price downwards. This warrants caution for potential investors due to possible short-term price declines.
They IPOd April 17 at $20, jumped up pretty fast to $41 before dropping back down and now it’s around $31. Unlike a lot of other new small companies it seems AVEX is already making deals, they’ve secured a large deal with the US as well as one with EUCOM
Only thing that has me hesitant is they just IPOd and a lot of IPOd in the weeks after going public they drop below their IPO price. And also Madison Dearborn has a majority of their stocks and will be eligible to sell in July so it might drive the price down depending on how fast they sell the shares