Re: Nobody has cracked the code
erierunner
12/31/2011 12:02:49 AM
Funny how you always hear about the ones that struck gold with the IPO's. The "It could have been me" theory is the same thought of the million people that invented the pet rock or chia pet before they were actually invented. Bottom line, some people get lucky some of the time and there is no way around that. We need to congratulate them for hitting it and go back to our normal way of life.
While it's hard to battle that feeling that you're "missing out, "it's worth repeating that IPOs are not usually the fast money tickets they seem. What's more, the bigger the first day jump, the better the chances you will be able to buy later at a better price.
Re: Nobody has cracked the code
BigJim
12/30/2011 6:46:37 PM
Yes it would be a great innovation to have a system that really encouraged broad participation by small investors.
Nobody has cracked the code
tokyogai
12/30/2011 4:39:04 PM
Good article. I am disappointed that none of the IPOs has yet figured a way to be truly fair to the small investor. There have been a number fo schemes, but nothing which has really caught on.
@Street Smart -
My comment about shorting IPO's was mostly in fun, as I prefer lower risk strategies. But there are options chains on GRPN and ZNGA. Could be interesting...
Re: IPOs - get in and out early
Street Smart
12/30/2011 1:57:22 PM
Very interesting in concept, @PredictableChaos, but is it possible to short an IPO?
If a firm solicits YOU to buy stock in an IPO, my advice is RUN and don't look back!
@Street Smart - Good advice. But I just might be tempted to see if there is any opportunity to short. As Noreen shows, a fair number of IPO's move dramatically - down.
Re: IPOs - get in and out early
Street Smart
12/30/2011 11:29:58 AM
@ProfR said it and it's true: "Most investors cannot get in on the first round." In fact, the only way to get in on a hot offering as an individual investor is to be a VERY good client of the underwriting firm. Even then, you will receive only enough shares (maybe 25 or so) to have bragging rights, not to make any serious money.
If a firm solicits YOU to buy stock in an IPO, my advice is RUN and don't look back!
Re: IPOs - get in and out early
PAW
12/30/2011 11:03:49 AM
It will be interesting to watch and see how the Facebook IPO will fare next year.
The blogs and comments posted on Investor Uprising do not reflect the views of Investor Uprising, PRNewswire, or its sponsors. Investor Uprising, PRNewswire, and its sponsors do not assume responsibility for any comments, claims, or opinions made by authors and bloggers. They are no substitute for your own research and should not be relied upon for trading or any other purpose.
Tweet This