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    IPO McAfee

    Leading-edge cybersecurity company
    IPO
    Medium risk

    Revenues in 1H 2019 - 1H 2020

    Invest in IPO McAfee

    This investment idea is no longer available. New applications are not accepted

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    Investment Idea Details
    The Company

    McAfee is a leading-edge cybersecurity company that provides advanced security solutions to consumers, small and medium-sized businesses, large enterprises, and governments. Security technologies from McAfee use a unique, predictive capability that is powered by McAfee Global Threat Intelligence, which enables home users and businesses to stay one step ahead of the next wave of fileless attacks, viruses, malware, and other online threats.

    Consumer focused products protected over 600 million devices in 2020. Enterprise business protects many of the largest enterprises and governments around the world, including 86% of Fortune 100 firms. The company was founded in 1987 in Santa Clara, California by John McAfee, Petko Stoyanov, and Ravi Kannan.

    Market Opportunity

    Cyberattacks have evolved from rudimentary malware into highly sophisticated, organized and large-scale attacks targeting consumers, governments, and a broad range of industries. According to RiskBased Security, during 2019, over 7,000 data breaches were reported, resulting in over 15 billion records being exposed. The number of threats from external actors targeting cloud services increased approximately 630% from January 2020 to April 2020.

    McAfee estimates its addressable market comprised of consumer and enterprise security is $30.4 billion in 2020, and is projected to grow at a four-year CAGR of 7.9% and reach $41.2 billion in 2024.

    Risks

    The COVID-19 pandemic has affected how the company is operating its business, and the duration and extent to which this will impact future results of operations and overall financial performance remains uncertain.

    The cybersecurity market is rapidly evolving and becoming increasingly competitive in response to continually evolving cybersecurity threats from a variety of increasingly sophisticated cyberattackers. It operates in a highly competitive environment, and expects competitive pressures to increase in the future, which could cause McAfee to lose market share. The key competitors include NLOK, PANW, SPLK, ZS, CRWD, Avast, Kaspersky, Cylance and others.

    Financials

    McAfee (MCFE) plans to sell 37 million shares at a price point of $19 to $22. The company intends to raise as much as $814 million in an IPO of its common stock at about $9.5B valuation.

    McAfee booked $2.745B in revenue for the last 12 months ended June 30, 2020. Gross margin is around 70%. The company is growing modestly with revenue growth of 9% YoY. It is profitable and had a positive free cash flow in 1H 2020. McAfee has a heavy debt load of $4.7B.

    Similar public companies include NLOK (trading at 5.5x sales with revenue growth of -5%), PANW (trading at 7x sales with revenue growth of 18%), SPLK (trading at 13.7x sales with revenue growth of -5%) and CRWD (trading at 48x sales with revenue growth of 84%). McAfee is asking investors to pay 3.5x sales with revenue growth of 9% and heavy debt load. This investment idea has a low potential return of up to 20%.

    How IPO Investments Work
    1. Collection of funds

    2-3 weeks before the start of the company publishes information about the opening of trading: financial statements for 3 years, a description of the company's business, plans for the future, as well as the risks that management sees in their own business. We analyze such offers and publish the best ones. Investors apply for deposits. Before the deadline for applications, you can change the request or cancel it.

    Publication
    16 Oct
    Threshold amount
    $50
    2. Buy shares

    We submit one large application for the purchase of shares by pre-subscription with reduced price to large investors. The application may be rejected in part or in full. Over the past three years, our applications have been rejected only three times. The next day, or every other day, we'll know at what price and at what percentage the order is executed, and we'll post it on «The my investment page».

    Submit applications before
    20 Oct
    3. Start Bidding

    The price of shares is rising from the first day due to the demand of investors deprived of the opportunity to buy shares before trading. Most of the stocks we've been recommending buying over the past three years have been starting to trade on the stock exchange at tens of percent higher than the price at which customers bought the shares. There comes a Lock up period when it is forbidden to sell shares purchased by subscription. Typically lasts 3 months.

    Start Bidding
    22 Oct
    Return forecast
    Low (up to 20%)
    4. Receiving profit

    After the expiration of the Lock Up period, the investment is automatically closed and the investor receives a profit on account of the deduction commissions UT. You can always view the results of your past investments in investment archive.

    End
    25 Jan
    Early profit fixation

    Although no shares are allowed to be sold during the lock-up period, our traders seek to offer investors fixed profit by way of using various financial instruments, including forwards, options, short positions etc.

    From the investor’s point of view this means that he or she may close an investment by paying a certain part of its value (as a rule, approximately 15 percent). This is due to high prices for the instruments which are employed to ensure availability of fixed profit. As such, you shall press any relevant button in the Investor Account as soon as it is active.

    The closing procedure is similar to commencement of investment business. You shall file a bid which is executed within a business day by UT. So, your investment is closed at the price currently prevailing on the stock exchange. However, we rarely recommend using this feature, since upon expiry of an applicable lock-up period the average performance is higher.

    Fee

    FOR ENTRY

    3 per cent of the share price. This fee is charged as soon as your investment bid is confirmed.

    FOR EXIT

    1.75 per cent of the purchase price paid for your shares as soon as trading is closed. This fee is charged upon closure of any relevant investment.

    SUCCESS

    20 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.

    TO EARLY EXIT

    Usually, 15 per cent (depends on the stock exchange environment). It is calculated per each investment individually.

    Advantages Enjoyed by Those Investing with United Traders

    RELIABILITY

    Our risk managers ensure proper support throughout the entire transaction. Moreover, you may call them on +7 495 646-15-57 or 8 800 333-66-81 or visit our office, if a more detailed discussion is needed.

    IN THE PROFIT FROM THE FIRST DAY

    Such an approach allows it to limit extra risks related to bankruptcy of start-ups and considerably increase profit vs investors purchasing shares on open Market.

    LOW ENTRY THRESHOLD

    Millions of dollars are required to buy shares on a subscription basis. We have generated a pool of traders and investors which enables any newbie to participate in any transaction as aforesaid by investing just USD50 or more.

    Invest in IPO McAfee

    This investment idea is no longer available. New applications are not accepted

    View more ideas