for those who do not know the CBOT is scheduled to go public next week (Wed)... ... and last I checked Bud Fox ain't gonna be the new CEO. Looking forward to some good trading opportunities. Blue Horse Shoe loves 'CBOT' (ticker unknown) bonne chance IcE
It is a very bullish sign that the Board didn't offer the options to buy more shares to its members. It is a bit disappointing that members have to buy them on the IPO. What is your strategy for getting in on an IPO?
www.ipohome.com/common/ipoprofile.asp?ticker=BOT will be interesting to see how the 1st day and week of trading goes for the Chicago Board of Trade ticker BOT ( NYSE )
This IPO (BOT) looks almost too good to be true and that is what worries me. It reminds me of BIDU where it jumped over 100% *after* it began trading in the aftermarket on its IPO date. Just as the performance of GOOG was in the back of the minds of those buying BIDU, the performance of CME will be in the back of the minds of those buying BOT. This stock could begin trading in the 80s or 90s so it will take some guts to buy it in the aftermarket but guts is what it takes to exploit trading opportunties. I'll be buying some Wednesday just not sure how much or how to set my stops if this thing doesn't pan out. It's may be an animal of an entirely different stripe but look at what happened to ISE earlier this year - another exchange stock - after it went public. It has done nothing but gone straight down and there were some who bought this with CME in mind too.
I believe the BOT IPO will be extremely successful -- the ISE analogy falls flat for me. ISE is in a cutthroat position within the framework of 5 similar exchanges. There are many single-listed CBOT products. I think anyone buying the open Wed will do well.
if it opens too high over the IPO range say 90-100 ... I think there might be some "flippers" out there because of refco's mess ( no position , just a hunch here )
Based on the prospectus sent to the members, the quality of their products, the fee structure and the amount of volume going thru, I believe that it has a very high probability of being successful. I wonder how many members will be on the offer on the way up. Many full seats were bought as investments earlier this year and last year. Disclosure: Although I try to be objective in my opinion, I'm a member.
Hopefully the "Refco mess" will mute the opening surge on BOT Wednesday assuming the mess hasn't been cleared up by then. I agree with riskarb those buying the opening Wednesday should do well but wouldn't put on my entire position at that price. Sometimes the open is the high of the day although for the anticipated ones it isn't. BIDU dipped about 10% off its open and then doubled later in the day. Las Vegas Sands, last year's hottie, dipped about 5% after its open and then rose about 10% later in the day and another 10% or so from that close over the enxt day or two before hitting a brick wall. It might be best to buy at the open and then see if there is any dip and buy more as they come back above the open. Then again, this one just might keep going right out of the box. Like everything else in trading, I guess it will all boil down to money management skills.