The World Audio float was labelled “a bitter lesson” in an article in this week’s Australian Financial review.

The article explained that while individual investors had taken up the World Audio float earlier this year, the big funds had avoided it.

With the company now trading at about half its initial share price, the Financial review article concluded that investors have lost at least $2 million.

The article warned against stock that sells on “word of mouth,” as World Audio did.

“It is a bad sign when institutional investors avoid a float,” concluded the article.