Square Inc IPO case

  1. Review the "anti-dilution ratchet provision"- what was the purpose (be sure to show the mechanics of the dilution)?
  2. Was the IPO under priced - describe how and why this happened? What would have been a better issue price and how much did the company gain/lose on the mis-pricing?
    Now review the company in FactSet - discuss the pricing history of Square and the current financial (ratios) history - particularly a profitability analysis along with a liquidity analysis.
    Discuss the capital structure of the company noting all issues of securities (including any credit history) and then do a thorough competitor analysis comparing key financial ratios. How is the company performing relative to its peers, if any? Look at the PIE of each company in the peer group or industry and estimate an industry average weighted by market capitalization - is Square trading above or below the industry PIE?
    Do a brief review of technical analysis: Look at the moving average price trend line (possibly 120 day), the MACD, and the Bollinger bands. check the definitions on Fact Set and there will be enough information for you to make an educated guess as to where the stock is expected to go.
    Now given some fundamental and technical analysis would you suggest this company is a buy, sell or hold and be specific in your rationale?