CBOT is only going higher. IPO's can't be shorted for 30 days and the float is so small and the fever is high for these exchange stocks right now that I suspect that it will have another strong week. Earlier I posted that Refco wouldn't matter and the stock would clear 100 and that was when it was 91. I bought some at 91.5 and bought and sold through out the day on Friday. I probably would have made more money had I just held at times, but you never know where this stock is going to settle in the first couple of days. Now with the strong momentum and CME reporting on Tuesday, I suspect another strong week for BOT. I wouldn't be surprised if some money goes from CME to BOT just because the price is low right now. Here's my call for the week and I'll go out on a limb: On Monday: 123 Tuesday: 144 Wednesday: 153 Thursday: Pullback Friday: 155 It's a long shot, but right now BOT is simply HOT!
I'm curious about the following: If you got shares as a member of the CBOT before the IPO and then sold the stock after the IPO, 1. How do you determine the basis for the stock for tax purposes? 2. What would be the basis date for the stock? If you have owned the seat for 3 yrs and the stock went public 2 months before you sold it, would that still be considered LT capital gains or ST because of the IPO? Any insight would be appreciated.
I would suspect anyone who owned shares wouldn't sell or could not sell due to restrictions. Sometimes insiders have to hold a year or so before selling.. I wouldn't suspect people would sell because it's 6% of the total stock. Why would someone sell a small portion of shares if they still have a huge majority that's not traded? As far as capital realized gains, it totally depends on where they had to buy shares at.. Maybe they paid 30, 20, 54?? That's their cost basis. We'll never know unless we're an insider. I don't think insiders could have sold at all for a while because of the IPO rules. Plus, if you do own shares of BOT before the IPO, chances are you're already rich, so what's a few hundred thousand or another million going to mean to someone who already has tons of cash???
Either way, you're making money on BOT. Just like I said in a prior post, I think this stock is going to the 150 range this week. It's just too hot right now.. Plus, what else is there to make big money on quickly these days?
CBOT members could have either sold at the Initial Public Offering price of $54 or have to wait six months before they can sell any stock. CBOT employees (even the janitors) had the option to purhcase up to 1000 shares at the IPO price as well. A few members chose to cash out at the IPO price and unfortunately left a lot of money on the table, you think after waiting more than 20 years some of these guys would have been more patient, but they are still traders. I talked to a buddy (big guy used to trade in the Dow during the bubble) who was thinking about buying a cigarette boat or a full membership when they traded down to $300 grand, he decided to go with the membership, and probably won't have to worry about coming in every day for awhile.
What are some price target opinions for BOT? I got in at 80.60 the other day and sold it in the afternoon at 93. I'm less than pleaesd i did not hold out for awhile.
Another great first 15 minutes of trading for BOT. I am getting used to waking up and making 5-10 points in 15 minutes and going back to bed!!!