Anton Tagliaferro remains cautious on IPO's and shares some red-flags investors should watch out for. Many are coming out of Private Equity who don't tend to be overly generous in providing gifts to investors. They're very clever people and what they do well is buy as cheaply as they can and they sell it off to the market as expensively as they can. Tagliaferro says that Spotless is a good example of this - The earnings appear to have doubled in the past couple of years under private equity ownership so they've done well. But you are now buying a very old established company in Australia, whose earnings have doubled in the last couple of years... there doesn't seem to be a lot of upside in terms of cost savings. In this video Tagliaferro explains why investors shouldn't just focus on prospectus numbers in new floats.


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