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Chowdhry: Box's Results Validate It Was Junk IPO, Should Have Been Priced At $5

Chowdhry: Box's Results Validate It Was Junk IPO, Should Have Been Priced At $5
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Following the results reported by Box Inc (NYSE: BOX), Global Equities Research’s Trip Chowdhry commented that the company’s IPO should have been priced at $5, giving investors an opportunity to make some money.

The IPO marked the peak of the stock, analyst Trip Chowdhry said. His research notes in early 2015 had mentioned that Box was a “total junk company,” and that it would be the next Zynga Inc (NASDAQ: ZNGA), Groupon Inc (NASDAQ: GRPN), GoPro Inc (NASDAQ: GPRO) and Violin Memory Inc (NYSE: VMEM).

Related Link: Box Is Working Against Its Own Plans: JPMorgan Downgrades To Neutral

Calling Box a hyper-inflated stock, Chowdhry wrote, “…sadly BOX IPO is not the end of Junk IPO parade.” He said the other Junk IPOs that were “in the works” were Nutanix, Twillo, Pinterest, Cloudera and Palantir, and added that the real value of these companies were a fifth of the peak private company valuations.

Latest Ratings for BOX

Sep 2016Mitsubishi UFJInitiates Coverage onNeutral
Jun 2016JP MorganDowngradesOverweightNeutral
Mar 2016Drexel HamiltonInitiates Coverage onBuy

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Posted-In: Global Equities Research Trip ChowdhryAnalyst Color Short Ideas Analyst Ratings Tech Trading Ideas Best of Benzinga


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