Crystal

So you want to buy some Peloton IPO shares…. here’s what you need to know!

Many Clip Out listeners have expressed interest in buying Peloton shares on their own. Of course, it isn’t as simple as going to the stock store and buying shares. Unfortunately, we’re not knowledgeable enough to explain it in terms everyone can understand. Or terms anyone can understand. Or terms that we can understand. We are certainly not experts. That’s what we’re getting at. In fact, we are so “not-experts” that (SURPRISE!) here’s a legal disclaimer: This information is provided for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney, financial advisor, or other professional to determine what may be best for your individual needs.

Ok, thank goodness that’s over.

Fortunately, Tiffany reached out to us with a detailed explanation. More importantly, she explained it in a way that “regular people” can understand.  However, please note:  that this post is the bare-bones way of understanding the IPO process in general and should not be used as financial advice. (Seriously, understand that. Don’t make us post the disclaimer again. Cuz, we’ll do it!) Everyone should speak to their financial professional for guidance!  And guess what, Peloton is expected to begin trading on 9/26/19, according to a published article from Investor Business Daily, so hopefully you can move through these steps quickly if you are still looking to buy!

Tiffany provided some background about herself so you can read up on her expertise. These are her direct words: “I work in financial planning for a very well-known brokerage firm. Before working as an advisor, I worked as an equity, options and mutual fund trader for the same firm. I was working as a trader when Facebook had its IPO. While working through that IPO, I learned that the average investor does not know much about that actual process and was often upset when they learn it is not as straightforward as raising your hand and saying ‘hey, I’d like to buy some shares in this IPO.’ ” After reading this, I knew Tiffany GETS us and so many of you who have been reaching out.  

Here are the steps Tiffany spells out (these steps are based off the Securities Exchange Act of 1934):

Contact a brokerage firm

I highly recommend anyone interested in attempting to get shares in this IPO contact their brokerage firm and learn that firms process and policies sooner rather than later. 

  • Not all firms are selected to participate in every IPO 
  • A lot of firms have minimums they require their clients to meet to even allow them to try to participate
    • For example, one firm requires individual clients to have 100k or 500k with the firm (dependent on the specific IPO) or trade at least 36 times per year. Each participating firm can choose

Officially enter your “indication of interest”

The next step is to officially enter your “indication of interest” or the number of shares you are requesting. Typically, it’s in round lots of 100 shares. Each firm dictates how to do that and what the time frames are, so when you are contacting your brokerage firm, ask about this. It is important to note: the window to enter your interest ranges from 1 day to 3 weeks. Given how quickly this IPO could go, you would need to do this right away!

Wait for the SEC to declare the offering

Next – wait! The SEC needs to declare the offering effective before you do anything else. Once the SEC marks the offering effective, the shares are priced. Once shares are priced, you must go back to your firm and “confirm the indication of interest”. There is typically a very small window for someone to go in and confirm your indication.  When you call your brokerage firm, be sure and ask this as well.

Next? Hope for the best

Shortly after the security is priced and marked effective by the SEC, the shares are allocated to participating firms. Once allocated, the firm deposits the shares in their individual clients’ accounts. If the confirmed interest is greater than the amount allocated to the firm, the firm then has discretion on who gets shares and who does not. This is the frustrating part. Typically, the better of (better off?) the client, the more likely they are to get shares in the amount they requested. If you have never purchased before, and it’s going to be you against someone who purchases often – you are going to lose out. It’s also important to note that the final prospectus will outline what percentage shares available will be set aside for institutional investors (think hedge funds, mutual funds, etc.) and retail (individual) investors. Having a 90/10 ratio is not uncommon. This final prospectus will be available once the SEC has declared the investment effective.

Tiffany gives an example of just how against you the odds can be. “With the Facebook IPO, I saw a client who had 100 million dollars with us only get allocated with 100 shares, if I remember correctly he requested 1000”. 

(Hey, Tiffany, does the client want to invest a podcast? Or are they adopting…full-grown adults?)

Tiffany sums up: There is no guarantee that if you did all the above steps that you’ll be allocated shares. An offering that has share requests 2-3x more than what is available is considered a “good IPO”.

What if you don’t get the shares in the Primary Market? Are you out of luck?

The above-outlined steps are how to participate in the actual Initial Public Offering. Most of us will not get shares in the actual IPO.  

So how then? Most people will get them in the secondary market (normal stock market) the day of the IPO shares are allocated. 

Once shares are allocated to investors and the stock market opens, they will almost immediately be able to be bought and sold by anyone interested. Once the shares are trading on the secondary market you can buy shares in any whole number amount. You can do this by calling your broker or more commonly, using their website or app. When buying shares, you can place either a “market order” or a “limit order”. When placing a market order, you are saying I want to buy X number of shares at whatever the market is currently trading at. The pro of this order type is you will almost immediately get shares. The con is you don’t know how much you will be paying for them until the order is complete. This can be very risky in a volatile market. When placing a limit order, you are saying, I want to purchase X number of shares for X amount per share. The pro of this order type is you know exactly how much (or better) you will be paying. The con is that you don’t know exactly when the market will be willing to sell to you at your requested price. 

So is it BEST to get your shares in the IPO?  

It depends. People get excited about getting shares through an IPO because there is a thought that they will be cheaper to get through the offering and then they will be able to sell them at a higher price through the stock market. Sometimes this is true, sometimes it is not. The first several days of trading a new stock can be volatile as the market adjusts the stock to “proper” price. 

Just like when deciding to purchase any other investment, it is important to speak with your financial advisor to ensure that you are investing in a way that aligns with your specific risk tolerance, time horizon and goals, as well as makes sense within the context of your overall financial plan.

123: Peloton Debuts Two New Instructors and we interview Mark Mohammadpour

123: Peloton Debuts Two New Instructors and we interview Mark Mohammadpour

Mark Mohammadpour standing in front of the mini pop up Peloton Store in Washington Square
  • Peloton introduced two new instructors this week – Tunde Oyeneyin and Kendall Toole.   You absolutely must go read the article linked here to read Tunde’s story.  (or better yet, listen to the episode!)  This lady is the real deal and I think I have a new favorite instructor. I am looking forward to taking a class with Kendall this coming week and I will tell you more about on the next episode!
  • Peloton continues on the road to IPO with the release of a roadshow video. This roadshow video is absolutely brilliant and a complete MUST WATCH for anyone who loves Peloton like I do.  It highlights the community and shows many behind-the-scenes details that I can never get enough of.  The link is kind of tricky and doesn’t always work, so keep trying if you get an error.  It will take you to the main page and Peloton is listed on the left hand side. Scroll down and click and ENJOY!
  • Plus TechCrunch has details on just how much Peloton stock will cost on the primary market.  For more details on how to get Peloton stock and how it all works – read our special blog post here.
  • There’s a new special offer on the bike that shows just how much faith Peloton has in their products.
  • Flywheel closes even more stores.  Ouch.  We’re starting to feel sorry for them.  A little.
  • More celebrities have been spotted on the bike – Kelly Ripa, Mark Consuelos, and Ryan Seacrest.
  • We call the next square in The Clip Out Challenge…and we have a little surprise for you.
  • A Peloton instructor got married!
  • Selena Samuela is featured on the Peloton blog.
  • Jennifer Jacobs plots her next phase.
  • mPaceline rolls out new features.
  • The Road Riders group cleans up at the Garden State Gran Fondo. Becky Madigan episode can be found here.
  • The XXL Tribe gets a mention in Golf Weekly.

Plus, at long last, our interview with a very patient Mark Mohammadpour. Mark’s website is here. You can find his podcast at this link.

122: Did Peloton Purchase Mirror? and our interview with Teri Griege

122: Did Peloton Purchase Mirror? and our interview with Teri Griege

  • Did Peloton purchase Mirror Interactive Fitness? Sounds like we’ll get to find out soon either way.  Whatever they acquired is supposed to be finalized in September!
  • We find a rare positive article about the IPO courtesy of Yahoo Finance.  Finally someone gets what all the excitement is about and that Peloton is NOT Uber and Lyft!  
  • Psychology Today writes about why fitness with friends is better.  Many different workout options are included, but of course, we care most about Peloton!
  • The Clip Out Challenge is finally here! We call out our first square.  We even tried a little video so you can watch while we pick!
  • Peloton has stopped selling bikes to apartment complexes and apartment complexes aren’t happy.  Did they make the right choice?  Find out our opinion.  
  • Wahoo Fitness has released their own bike trainer.  The Road Rider crew LOVES it.  Will it gut Peloton sales?
  • Peloton and Flywheel are duking it out in court and We Work is caught in the crossfire.  This is a fascinating little business tug-of-war, if you like that sort of thing.  
  • A Mini-Purge has occurred. Which instructor no longer has classes available?
  • Lots of new celebrities have been spotted with their Pelotons.  
  • Rebecca Kennedy is back on a bike after her injury.  Check our her IGTV for all the details and make sure to welcome her back.
  • Christine D’Ercole cleaned up at Nationals.  She gave a whole list of her awards here.  
  • John Foley has a new favorite ride.  He popped up on the OPP just long enough to share!
  • Hannah Marie Corbin buys a house.
  • Are you ready to Run The Year 2020?  Make sure to check out the new Facebook group and join us all in 2020 to reach a new mileage!  Don’t worry, you don’t have to run all 2,020 miles!  

All this plus our interview with Teri Griege.  You can hear even more of Teri’s incredible story here and here.  

121: BONUS EPISODE: Peloton IPO Special with Michael Jurenka

121: BONUS EPISODE: Peloton IPO Special with Michael Jurenka

It’s a special bonus episode of The Clip Out. Peloton’s SEC filings are public and all of us outside of the financial sector are collectively wondering what it all means. So we dig into them with special guest Michael Jurenka C.P.A. 

If you’ve read many of the articles written so far, you’ve undoubtedly been frustrated by their complete lack of understanding when it comes to what differentiates Peloton from other, ordinary exercise equipment companies. We wanted someone who could understand what makes Peloton special without being blinded by fandom. Yet, we also needed someone who understands the passion that Peloton has inspired in its users. 

That’s where Michael Jurenka comes in. He isn’t just a certified public accountant. He’s also a Peloton owner. So he brings both financial expertise and a love of Peloton to the table. 

Now keep reading while we do a little CYA:

(This information is provided for informational purposes only.  It should not be considered legal or financial advice.  You should consult with an attorney, financial adviser, or other professional to determine what may be best for your individual needs.)

Brownies! (Submitted by Sarah Lester)

Sarah Lester: Episode 120

Check out Sarah’s interview here!

1 tablespoon vanilla

3 eggs

1/2 tsp baking powder

1 cup all purpose flour

1 cup cocoa powder

1/2 tsp salt

2 cups chocolate chips

Prep

Cook
30-34m

Ready in
35-40m

Directions

  1. Preheat oven to 325 and grease 9×13 pan
  2. Place butter in large microwave safe bowl and melt butter
  3. Mix sugar into melted butter and microwave briefly
  4. Mix in cocoa powder, vanilla, baking powder and vanilla
  5. Whisk in the eggs
  6. Mix in flour
  7. Mix in the chocolate chips
  8. Pour into greased pan and bake for 30-34 minutes

120: Peloton IPO Filings Now Public and we interview Sarah Lester

120: Peloton IPO Filings Now Public and we interview Sarah Lester

Its been a big week in Pelotonia!

  • The Peloton IPO paperwork has gone public and there’s lots to talk about.
  • We dig into the SEC filings (it’s not as boring as it sounds).
  • The media has lots of, ummm…interesting takes on what it all means:
  • Business Insider has an odd take on Peloton.  This particular article discusses the letter that John Foley included as a pitch to investors with the SEC filing.  BI insists that Foley “downplays” that the company is essentially a bike-selling company.  
  • CNBC has an even odder take.  This article seems to imply that since the health of the United States overALL isn’t improving, then Peloton is clearly not effective.  We can’t even pretend to understand where this came from logic-wise.
  • The New York Times questions if Peloton’s success can last.  This is the most balanced of the three articles, they aren’t completely anti-Peloton, but they do try to turn all the new subscriptions gained in the last year into a negative.   (Plus they interviewed Crystal!)  
  • Law.com has an article about a father/daughter duo who works at Peloton.  They attempt to draw comparisons between Uber and Peloton for a similar situation, but we think its more about SEO optimization than actual writing. However, they mention the Kushi family and they are fantastic and deserve tons of good press!
  • Is Flywheel going to start working with Wal-Mart?  Hear what the Flywheel prophet has to say.
  • Alison Sweeney proclaims her love of Peloton.
  • Christine D’Ercole returns to the National Championships for the third straight year.
  • Selena Samuela completes her first marathon…and wins!
  • Changes to the schedule are coming meaning more live classes for the West Coast.  BUT… what ELSE does it mean.  We are here to speculate!

All this plus our interview with Sarah Lester! Sarah is a survivor of psoriatic arthritis and she loves Christine D’Ercole.  Christine actually inspired a new project Sarah has just launched that is doing tons of good in her community!

Make sure to check out Sarah’s yummy (Tom approved) brownie recipe here.  

119: Would An Economic Downturn Hurt Peloton? Plus an interview with Daniel Dennis

119: Would An Economic Downturn Hurt Peloton? Plus an interview with Daniel Dennis

  • CNBC has an article discussing the effects that a recession could have on boutique fitness outlets including Peloton. 
  • The Wall Street Journal discusses what other fitness outlets think of the rise of Peloton.
  • We have a visit from The Peloton Prophet.
  • Flywheel closes even more stores.
  • The Clip Out Challenge is getting closer.
  • Robin Arzon becomes a ROAR Model.
  • Jess Sims is featured in Well + Good.
  • The Chainsmokers get a featured ride & run.
  • There’s a sale in the boutique. 
  • Crystal talks about her new Whoop fitness tracker.

Plus our interview with Daniel Dennis!

118: Peloton Collects $10K From Flywheel and Our Interview with Kim Gitzel

118: Peloton Collects $10K From Flywheel and Our Interview with Kim Gitzel

  • Flywheel gets a judicial slap down and Peloton gets $10K.
  • More details on The Clip Out Challenge and how to register.
  • Peloton ditches single-use plastic bottles.
  • A new homescreen is launched.
  • mPaceline releases an update that allows for users to create their own challenges.
  • Robin Arzon discusses her IVF treatments on IGTV.
  • A past update from Jonathon Swersey.
  • Ben Alldis launches a climb series.
  • NYC On Track has some cool perks for entrants.
  • GOOP talks about Peloton.
  • Rob Lowe proclaims his love for Peloton and Jenn Sherman.
  • Jess Sims is featured in Women’s Health Magazine.
  • Two new celebrities have been spotted with Peloton equipment.
  • Matt Wilpers and Selena Samuela host a Facebook Live on marathon nutrition.
  • Rebecca Kennedy and Christine D’Ercole celebrate birthdays.
  • Miami gets its first permanent Peloton store.
  • Ally Love partners up with Lee Jeans.

All this plus our interview with Kim Gitzel

117: Soul Cycle Throws Down The Gauntlet at Peloton and our interview with Alexis Markowski

117: Soul Cycle Throws Down The Gauntlet at Peloton and our interview with Alexis Markowski

  • The Clip Out Challenge is here and we have the details! 
  • Soul Cycle throws down the gauntlet launching their own “at home” division.
  • Soul Cycle also finds themselves in a bit of politically related controversy.
  • Jessica Kleiman gets a big promotion at Peloton.
  • Howard Stern is still talking about his new bike.
  • Instructor birthdays are everywhere.
  • Outdoor Voices gets discussed in Shape Magazine.
  • New store madness.
  • Tom surprises Crystal with a gift.
  • Peloton has a new (John Mills inspired?) commercial.
  • All this plus our interview with Alexis Markowski!

116: Does Your Bike Monitor Need To Be Replaced? Plus our interview with Jennifer Smith

116: Does Your Bike Monitor Need To Be Replaced? Plus our interview with Jennifer Smith

Peloton announced this week that some monitors will need to be replaced to get future updates. We have the details. The Peloton Prophet returns with MAJOR predictions, Disney World gets Peloton knock-offs, and Cam Newton stops by the studio for a ride. Plus our interview with Jennifer Smith.

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