IPOs

  • 02 May
    Read This Before Investing In The Next Hot IPO

    Read This Before Investing In The Next Hot IPO

    Today, I’ll continue on with my review of Graham’s The Intelligent Investor with a discussion of the sixth chapter of the book.

    Chapter 6 of The Intelligent Investor discusses:

    • Junk bonds
    • Foreign bonds
    • New stock issues – IPOs



    More →

  • 28 Feb
    The Snapchat IPO Tells Me Two Things

    The Snapchat IPO Tells Me Two Things

    • The market is greedy and liquid. This is a very dangerous combination as valuations don’t matter, but what’s cool does.
    • It’s easy to forget that, in investing, it’s more important not to lose than to make it big, and by playing the greater fool roulette, investors can lose a lot.
    • It’s a mystery how some companies that are cool and with $2.2 billion in net profits trade at valuations of 16.5.

    Introduction

    Reuters reported that the Snapchat Inc. IPO is oversubscribed as potential buyers have been plentiful at lunches in New York and London during last week’s road show. Snapchat plans to sell 200 million non-voting shares of which 55 million are from company insiders for an estimated $3.2 billion which would bring the company’s market capitalization to over $22 billion. More →

  • 17 May
    IPO Numbers Are Falling

    IPO Numbers Are Falling

    • IPO numbers are falling as increased market volatility makes investors cold towards to new issues.
    • Upward pre-IPO price revisions bring to better initial returns.
    • Recent IPO stocks get hammered at any sign of trouble in the markets.

    Introduction

    An Initial Public Offering (IPO) is the first sale of stock by a private company to the public. An underwriting firm helps the previously private company determine an offering price and brings it to the market. IPOs can be very risky but also very rewarding; who wouldn’t hope of achieving returns similar to the ones achieved by investors who bought Microsoft Corporation (NASDAQ: MSFT) at its IPO? More →