Investment risks in private companies like Xiaomi

As we wrote in the previous article, how to buy xiaomi stock before xiaomi IPO. We may invest in xiaomi company, but xiaomi has become a private company. So there are some investment risks in private companies like Xiaomi that we should consider. All investments do have different risks. Invest in xiaomi also poses a risk to most investors.

Do you know that private companies are not required to release quarterly or annual reports? There is also no way we know the value of our stock. Then do you think it is not a risk to the investment we do.?

Investment risks in private companies like Xiaomi.

Investment risks in private companies like Xiaomi
Xiaomi IPO

1. When the stock price you feel rises, you may be able to buy it. But if the xiaomi stock does not go public this year, you have to sell it to the secondary market.

When will Xiaomi go public?

There is no certainty when the xiaomi will go public. Something very eagerly awaited by most investors in the stock market. How not, the credibility of the current xiaomi stock is quite promising. If you see stock price increases from 2014 to date have increased significant prices. Then when will xiaomi stock go public? Know the real thing that xiaomi can still support and develop itself. In fact, xiaomi companies are currently rolling their funds into the development of smart devices and online applications.

2. When stock investment without assurance of stock development and the release of quarterly and annual reports make investing in xiaomi is now quite considerable.

Why do we need the certainty of the stock we have in xiaomi?

The development of the stock that we have and the release of the report is closely related. Indeed for most investors do not need it, maybe they think investment in xiaomi stock will be profitable and not harmful. Moreover, investors who currently exist are mainstream investors. They must have studied the development of xiaomi company from 5 years ago so they must be sure of profit.

See also  Xiaomi ipo sponsor Citic Securities, Goldman Sachs dan Morgan Stanley

What should we do for this year?

For now, we can only oversee the news about Xiaomi IPO. If you have joined a stockbroker, follow the development of xiaomi stock in your broker. Do the brokers you own to get a share of xiaomi stock or not. If your broker has not provided the xiaomi stock to buy, you may have to wait until the xiaomi IPO and the xiaomi stock market are open.

Will Xiaomi wait too long to open an IPO?

xiaomi IPO

In fact, CEO Xiaomi “Lei Jun” has not completely rejected the idea of Xiaomi IPO. According to Lei Jun, to go public xiaomi takes at least 15 years. This was stated when establishing xiaomi company in 2010. Until 2018, exactly 7 years of progress Xiaomi, Lei Jun still remains stiff with his words at that time. for that investors are required to be patient waiting for Xiaomi IPO until 2025.

Industry watchers even have the wrong analysis of  Xiaomi IPO. They assume that the xiaomi will go public when xiaomi sales go up to 135% by 2014. But the next decision is not on the side of xiaomi. Having succeeded with sales that rose 135% maybe this year will experience a flat trend even decline in sales. Everything feels natural. Smartphone competition today is very tight and public consumption of smartphones start flat.

However, if Xiaomi was decided to go public by the end of 2014, observers analyzing the lousy possibility could happen. investors will also think to keep their shares in xiaomi. Xiaomi sales are very slow (relying on online sales only) and high valuations. In addition, the xiaomi has an operating margin of only about 1.8% in 2013. with such small margins, it may not be profitable for xiaomi.

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