The Importance of Industry Momentum in IPOs

The market is a forward-looking mechanism, which means that it will discount usually 6 to 12 months ahead. That's irrelevant because of stock can double and triple while we're waiting for confirmation from the company. And at the moment that company misses those expectations, we see very quickly the market adjusting itself with significant pullbacks in those momentum stocks. But industry momentum is what it is the most important criteria that I look for.