Intriguing IPOs: Signing Day Sports (SGN)

Some concepts are too good to be true. This is one of them.

Triumphant Diagoras of Rhodes Carried by his Sons, Auguste Vinshon, 1812, oil on canvas (Ecole Nationale Supérieure des Beaux-Arts) (image credit: VladoubidoOo)

I think there are companies we like, and then there are companies we actively root for. They solve a unique problem you see and provide a solution that makes so much sense. These types of companies are, arguably, some of the most dangerous companies we can find as investors. We get so entranced with the problem they intend to solve that we often overlook the underlying issues that besiege it.

The first few paragraphs of Signing Day Sports’ (NYSEAMERICAN: SGN) prospectus made me want to run through a wall for this company. This business makes incredible sense to anyone intimately involved in high school and collegiate athletics as a student or parent. It is developing a platform that connects high school athletes with college recruiters through an online “resume” uploaded to their platform.

The underlying concept seems like an absolute layup. But as with so many investments, the devil is in the details.

I’m a fan of the business idea but won’t touch it as an investor for some time. Let’s dig into why.

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