This is a few days old. Sorry if it is old news.
Talend S.A. (NASDAQ:TLND), a global leader in big data and cloud integration, today announced that it has filed a registration statement on Form F-1 with the U.S. Securities and Exchange Commission (the “SEC”) relating to a proposed public offering of American Depositary Shares (“ADSs”), each representing one of its ordinary shares. All of the ADSs to be sold in the proposed offering will be sold by existing shareholders of the company. Talend will not receive any proceeds from the sale of the ADSs.
Might keep the share price down for awhile???
KC
Talend S.A. (NASDAQ:TLND), a global leader in big data and cloud integration, today announced that it has filed a registration statement on Form F-1 with the U.S. Securities and Exchange Commission (the “SEC”) relating to a proposed public offering of American Depositary Shares (“ADSs”), each representing one of its ordinary shares. All of the ADSs to be sold in the proposed offering will be sold by existing shareholders of the company. Talend will not receive any proceeds from the sale of the ADSs.
The bolded sentence means this action is not dilutive. Therefore I wouldn’t expect this to hold the stock down. Anyway, I think it’s up a bit since the announcement.
Bear
The bolded sentence means this action is not dilutive. Therefore I wouldn’t expect this to hold the stock down. Anyway, I think it’s up a bit since the announcement.
Bear,
I didn’t comment on the existing shareholders because it was such an obvious part of the notice. Actually, I think the fact that these are existing shareholders is a reason why the share price might be contained for awhile. Same number of shares, more sellers than buyers (at least more sellers… can’t predict the buyer side). Also, this is a filing of “intent”. Doesn’t mean the sales will occur? Maybe it is procedural in order to allow for the sale.
But, if my notes are correct, the largest institutional holder is Capital World Investors with 989,638 shares, up 202,138 in the last 30, uhmm… 90? days. The value is about $22 million? Hmmm, they own $20 billion of microsoft; they probably don’t discuss TLND daily at the senior partner level. Top 2 holders have about 30 days average trading volume.
So the point is that IF that junior guy in the fifth cubicle decides to exit, he/she will sell into whatever strength TLND displays. Possibly.
KC
So the point is that IF that junior guy in the fifth cubicle decides to exit, he/she will sell into whatever strength TLND displays. Possibly.
Hi KC,
I think that if Capital World Investors has 990,000 shares, up 200,000 in the last 30 days, they are not interested in selling or they wouldn’t have added 200,000. And they may add some of the shares from that secondary too. But if that junior guy in the fifth cubicle decides to sell, he won’t be able to sell into strength, because there isn’t enough volume for him to sell out of that position in a year. That’s a buy and hold position, and they knew it when they bought it.
I suspect it’s the venture capitalists who are selling, plus maybe a bit from the insiders. But that’s just my guess.
Saul
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I suspect it’s the venture capitalists who are selling
Greetings, Saul.
Interesting point about venture capitalists. That is what I was looking for. When you look at the “holders”, you see insiders and institutions. Where are the venture capitalists? Shouldn’t they show up in the list? I thought they would be “institutions”.
For example, the second largest institutional holder bought only at the IPO and are now down about $12 million. You can discover that on the NASDAQ page. But no where could I find venture capitalist owners. Doesn’t seem right, somehow. I certainly agree that the cubicle level buyer won’t be in a hurry to realize a 50% loss (unless just to get the position off his book).
BTW, when responding to Bear’s post I mistakenly looked at Hortonworks instead of Talend. Age? Anyway, the HortonWorks CEO has been a massive buyer on the open market. In the referenced time period there were 7 insider buys and 15 sells (open market) but 1.7 million shares bought and 0.14 million shares sold.
KC
They filed an F-1/A today. This added information that 3.12 million shares will be offered. That is 51 days of average trading volume. There is no dilution, still 28.6 million shares. But still, 51 days? How can that not keep a lid on share price?
Have a read. Only 196 pages plus another 100 pages of other information on lock-ups, financials, …
KC
KC, since you read it all, who is offering the shares?
And by the way, the reason they are doing this as a secondary is BECAUSE of the illiquidity. There are institutions that want to buy, and others who want to sell, but they can’t offer or bid huge amounts without roiling the market, so they do a secondary. The entire “51 days” worth will be absorbed in one day. One group will sell all those shares and another will buy them.
Best,
Saul
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who is offering the shares?
Didn’t say I read it all. 
Enough for me to count the pages. I don’t think the sellers were identified, but that info could have been buried in there.
I agree with the secondary offering, single day sale, added liquidity. Woke up this morning thinking the same thing.
KC
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I am late to the thread, but what time frame did you see insider buying on HDP?
It looks like mostly sells here: http://www.openinsider.com/search?q=hdp
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I’ve been following the board this year, especially since Saul and you guys are having a good run.
I asked a very sharp 21 yr old (my son’s friend, who has been working for IBM), to look into Talend.
His response follows:
So I took a look at Talend a bit today and here are my thoughts.
Talend it seems to me is a company seeking to streamline the process known in computing circles as “Digital Plumbing”. That is,
essentially taking data they’ve collected from several sources and either aggregating them into a new more useful set or converting them into
a different or more useful output format. For example, a company might take a database consisting of previous customer purchasing preference
and then combine it with a database of the customers address or city of residence to create a heat map of where in the country their products
are selling best.
Generally this process requires some pretty in depth programming/database knowledge but Talend has created a program which centralizes and
streamlines this whole process. However, while the program is easier for a layman/non-programmer to use it still retains enough flexibility and extensibility
to be used by more technical people. Generally this level of data analysis and aggregation is only available to the bigger tech companies like
Facebook, IBM, Apple etc. because the price point is so high. So their product is seeking to open up data analysis/aggregation capabilities that were
once limited to the likes of Facebook to any company that exists in a data driven environment.
Now I wouldn’t say they are doing anything particularly revolutionary in terms of technology but their idea is solid, their tech is good and the market they’re
catering to is booming.
Best Regards,
…
Hope this helps.
HP
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I asked a very sharp 21 yr old (my son’s friend, who has been working for IBM), to look into Talend.
Thanks Herman, that was enormously useful, and reassuring.
Saul
It looks like mostly sells here
Preferred,
You are correct. The time frame was 3 months. The info was from nasdaq.com. However, I was looking at the summary of “buys”. These “buys” were “acquisitions”, not market trades. They included 1.3 million shares to Rajnish Verma and 895,000 to Herbert Cunitz.
My bad. Not my first, either.
KC
Thank you, Herman.
Your son’s friend information on Talend is exactly the kind of information we all need to frame the companies we are thinking of investing in.
Boots on the ground intel can never be underestimated.
Thanks for sharing.
Jim
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