If this is any indication of the IBIPO

Discussion in 'Stocks' started by mde2004, May 2, 2007.

  1. mde2004

    mde2004

  2. Gotta be careful with that though..

    An indication that a ton of people think it's going to gap up that much is an indication that there's going to be a ton of flippers.

    There is no doubt that the IBKR IPO has a ton of hype behind it.
     
  3. won't the "dutch auction" limit the opening range somewhat?

    of course if it gets "bid" the whole day or whole week

    it will not matter

    :p
     
  4. mde2004

    mde2004

    It will probably open slightly higher but the demand should take it up because most firms(including mine) prohibit you from selling the shares for 15 days if you want to be able to participate in future IPOs. Firms do not like when people flip the shares on the first day. The demand should drive the price up just like the other exchange and hedge fund IPO's recently that priced with huge investor interest. The dutch auction is only selling so many shares and if there is immediate demand for say 20m shares that did not receive allocations then they may buy it at market on Friday. Look at GOOG which also did a dutch auction and NMX and FIG for examples of the gains to expect.
     
  5. mde2004

    mde2004

  6. If you want to be a flipper, go ahead and flip until they block your account from getting new IPOs, close it, and open a new account.
     
  7. Whoever jumps on board this thing the first day is an absolute IDIOT. Of course, there might be a little pop, but the drop is unpredictable.

    How many times have you heard the words "oversubscibed" and "hot ipo"? Let me give you a few examples:

    Opnext IPO demand heavy, analyst firm says

    By Steve Gelsi
    Last Update: 2:56 PM ET Feb 14, 2007


    NEW YORK (MarketWatch) -- Networking technology maker Opnext (OPXT : opnext inc com
    News , chart , profile , more
    Last: 14.51+1.05+7.80%

    12:21am 05/03/2007

    OPXT14.51, +1.05, +7.8%) may boost its price beyond its $13-$15 range for its initial public offering on Thursday, IPO Boutique reported. Opnext, a former unit of Hitachi, plans to raise about $240 million by offering 16.9 million shares with underwriters Goldman Sachs (GS : The Goldman Sachs Group, Inc
    The deal is multiple times oversubscribed and could increase its price, said IPO Boutique, an IPO tracking firm.


    Then what happened next??? It went from 19.95 on that first day to 11.96 within a month and a half.

    Need another example?
    NYMEX NMX

    This thing was $150 on the first day and then it NEVER saw that price again. I DOUBT that the Nymex will see 150 in the near future especially after the negative reaction from the earnings call.

    All this hype and "oversubscibed" news is so that the dumb traders can come pick up their shares the first day. I wouldnt touch an IPO until after the first earnings calls and a few analyst pumpers.

    If you do happen to make some cash off of the IPO the first day, your not an idiot. Your a *lucky* idiot.
     
  8. uh, the people who bought the nymex IPO made 100% at open.

    The only reason for the massive spike to 150 is because of all the market orders dumped onto the market.

    Of course if you buy at the peak like that you're an idiot, but the IPO buyers were not.

    And GOOG went way above it's first day trading price.
     
  9. It will start trading Friday (tomorrow). Auction closes today 4pm.
     
  10. xyannix

    xyannix

    When do they let you know how many shares you were given and at what price?
     
    #10     May 3, 2007