Who is Well Auctioned?
Well Auctioned LLC is a Greenwich, CT based online financial information company. We are owner-operators and self-funded. We are not associated with any NASD member, nor do we accept any compensation from any NASD member, issuer or affiliate with regard to potential research coverage of any IPO. Neither our managers, employees, nor consultants may invest in any IPO upon which Well Auctioned provides research or simulation services.
Our founders have decades of relevant experience collectively in corporate finance underwritings of IPOs, research and online financial information services on Wall Street. For more information please see About Us – Management.
Can Well Auctioned tell me what IPOs to choose and how to price my bid?
No. Well Auctioned is not an investment advisor. We provide information and tools for IPOs that support the investment community. Investors make their own plans and come to their own conclusions. Given the risky and speculative nature of IPOs we recommend that investors speak with their financial advisor before making an actual investment in any IPO.
How do you find research analysts to cover an IPO?
In addition to our own internal research resources, we are developing relationships with independent research firms as well as experienced individual analysts. We will ask our customer community to rate the analyst after the IPO and will use that feedback to help form our long-term core research team. We also encourage references to independent analysts trusted by our customer community. We intend to have a core group of research “voices” on specific sectors, as well as “guest lecturers” contributing to Well Auctioned’s Community.
What IPOs will Well Auctioned Cover?
In an average year there are 150 to 200 IPOs. Well Auctioned will endeavor to provide comprehensive coverage on the top 25%, which should capture the largest offerings which interest the broadest spectrum of customers; however, as we develop relationships with a broader number of research analysts, we will extend our coverage to as many IPOs as possible.
I understand the Independent Research Concept, but why is the Auction Simulation important?
Well Auctioned’s products and services are based on the tried-and-true educational method that learning and doing really enhance comprehension and understanding. This learn and do method has powerful additional benefits when done in a community or group setting. The group’s feedback provides valuable perspective to the individual, enabling them to refine their approach and to have a more informed dialogue with their financial advisor.
Well Auctioned’s independent research reports and auction simulation service may be purchased separately. Also any registered user can receive free, a small amount of tokens to experience the auction simulation; however, we have provided incentives (i.e. a much larger amount of tokens and potential to receive detailed auction simulation statistics) to encourage our customers to try the complete process of research and auction simulation.
Well Auctioned believes, based on the founders’ decades of collective experience in corporate finance, research, and management of online financial information companies, that over time the comprehensive process will create the most value for our customers and the overall Well Auctioned community.
How can I be assured of confidentiality?
Well Auctioned zealously guards the confidentiality and privacy of our customers. We know that confidentiality is necessary to attract and allow customers to test out multiple bidding strategies and expose large mock bids, both of which are critical to a dynamic and productive auction simulation process.
How do you know the auction simulation will be accurate?
We do not provide any assertion that our auction simulations will reflect any real world IPO outcome. Ultimately as enough customers join our community and see the mutual benefits of honest group collaboration, then the forecasting likely will grow more predictive. In the meantime while the Well Auctioned community is growing to scale, the auction simulation hopefully serves as an enjoyable means to practice what one has learned in reading the prospectus, performing due diligence, and/or reading our research reports. We think at the very least that the auction simulation will be an excellent forum to compare customer viewpoints during the traditional dry and secretive process of an IPO. We do believe that that there is value to the individual in receiving the group’s perspective, even if it is not a magical answer to a future IPO price.
It depends on many factors such as how honest customers are, how many customers are in the simulation, the rules we have created, and other factors outside of our control. We have developed a system that (1) costs some money to play, (2) allows for some free play at statistically nominal levels, (3) can monitor and exclude manipulative bidding, and (4) rewards accuracy. These system elements try to get to the root of the accuracy issue by reducing the influence of non-serious participants and increasing the premium for accuracy. However, as enough customers join our community and contribute their viewpoints, the statistics of the law of large numbers, begins to work in our collective favor.
Well Auctioned will strive continually to improve the simulation experience and its accuracy. The power to ultimately close the accuracy gap rests with the investment community—it’s the investors’ system. We provide the infrastructure and ground rules, and get out of customers’ way.
Can financial advisors or brokers use Well Auctioned’s products and services?
The SEC’s Rule 138 prohibits anyone who is involved in a distribution of securities to provide any kind of research to their customers before the IPO and up to 25-40 days after the transaction. This is known commonly as the “quiet period”. So if you are a broker or financial advisor, whose firm is involved in the underwriting, syndicate or selling group of that particular IPO, you cannot distribute our research to your customers. But Rule 138 also makes it possible for brokers or financial advisors who are not involved themselves or associated with a NASD member firm that is involved with a distribution, to use Well Auctioned’s products and services. We strongly recommend that you contact your compliance officer before using any Well Auctioned product or service.
Who is RedGate Advisors?
RedGate Advisors LLC is a corporate finance advisory firm controlled and managed by Burke Dempsey and Scott Appleby, who are also Managing Member and Head of Research of Well Auctioned LLC, respectively. RedGate specializes in offering advisory services to financial and business services companies. RedGate’s managers or employees are restricted from investing in any IPO upon which Well Auctioned provides research or simulation services. RedGate is not associated with any NASD member firm and will not accept consideration from any issuers with respect to potential research coverage by Well Auctioned.