Flotation Frippery or Share Skullduggery?


(Tony, Secret Lemonade Drinker) #1

A question for those who have invested in Monzo.

When Monzo eventually/inevitably floats and your many hundreds and thousands of shares become freely available to trade, what are your plans? Will you sell up in a bid to make a quick killing, or are you in it for the long haul?

  • Sell immediately, retire to the Bahamas
  • Hold short term, but sell once everything settles
  • Hold long term, like a shares Mr Trebus

0 voters


(NM) #2

may have had to google who Mr Trebus was :rofl:


(Tony, Secret Lemonade Drinker) #3

I’m showing my age with that one, got to say.


(Simon B) #4

My first thought was Tremas from Doctor Who. AKA the world’s most obvious anagram for who that character would become.

He didn’t have any shares in anything though. They scrapped that plotline.


(#savetheseabass) #5

I’ll buy more


(Dan) #6

There’s some really interesting articles floating about (pun intended) about how to handle these situations when a company you invested in floats.

It’s basically a game of regret minimisation. If you sold 100% immediately and Monzo quadrupled in size a year later, would you feel regret? Conversely if you held onto them and Monzo tanked 95% a year later.

There’s loads of strategies. I think if the day comes, my anti regret strat is to sell around 7.5% of my remaining shares per quarter until there’s none left; which should take years.

Here’s an article (albeit about employee stock) covering the topic:

https://blog.wealthfront.com/sell-employee-stock/


(Nick) #7

Do you have an old fridge in your garden filled with boxes of broken biscuits too?


#8

This is interesting because it distinguishes whether you believe in the business or believe in the hype. Personally, I like Monzo but I believe more in the hype than the product’s ability to make significant in roads into the U.K. or global banking markets. (Please, nobody go off on one. I use Monzo as my main bank, just don’t believe there is room in the market for everybody). I’d sell on Day 1 and be happy for any positive return, for fear of another Snap, where Monzo fails to truly monetise the platform.

Good thread. Looking forward to seeing what people say.


(Kenny Grant) #9

Another way to look at it is risk minimisation. Holding long term is a risk if you don’t have other significant assets. I’ll probably do something similar if we ever do get the chance - sell slowly over several years.


(Splodf) #10

I don’t reckon they will float until they are profit making or at least very close to it.


#11

HOLD!

I see big things for Monzo in the next 20-30 years


(Splodf) #12

Holding for that long you’ll definitely find out one way or another!


#13

At which point I’ll be retiring with my fortune on a beach in sunny Scotland


(#savetheseabass) #14

Long enough for climate change to get that bad then


#15

I do wonder when Monzo will float though, I reckon 3-5 years?

Still think they’ll raise again but perhaps for a US launch?

Fascinating times, never thought I’d get excited/ so interested in a bank…


(#savetheseabass) #16

2 years, Max, but next summer would be my guess, after it has been launched in America and Europe


#17

So soon?! We shall see… I do feel they will really get going this year so it could happen


(Splodf) #18

Guess I need to buy some more shares…

I’m going to have get over this whole number thing.

I wonder if there’ll be another round before ipo


#19

If I had enough shares - and Monzo got super super valuable - I’d probably sell up to the amount each year that’s capital gains exempt.

A man can dream.


(Josh Lindl) #20

I’ll hold. There’s so much potential to build on the solid foundation. This is still the very beginning. We are all early adopters even 3/4 years in. Disagree with the comment that there’s only so much space in the market. It’s like saying Uber wont do well because there are loads of taxi companies or that facebook shouldnt bother because there is Bebo and MySpace. Instagram shouldnt bother because there is facebook already. AirBnB because…you get the picture, lots of examples. Monzo are disrupting the industry not just entering it. Opportunity isn’t finite when you have great leadership, talent and tech, which I believe they’ll continue to attact with the culture they have built. Global FS is a very, very, very big pie to get a slice of - there is lots of upside on the journey towards, and well before, becoming a dominant player alongside HSBC and Barclays. I also dont think this is a race with only one winner - multiple FinTechs can be successful. Furthermore, in my eyes, Monzo won’t be/isnt just a bank. It’s a software company. The plarform can pivot out into all sorts of avenues. Remember the vision is a billion customers.