Some thoughts on IPO culture: Everyone has heard stories of investors getting in on the ground floor of newly public companies and making an absolute killing. While these stories are true, particularly for the chosen few who are allocated shares by their broker prior IPO, things are not always as rosy for the rest of us who are forced to wait until the company actually goes public to get a piece of the action. With this in mind, 2011 could go down in history as the year of the IPO. As of May 31, 69 IPOs have been launched with a combined value of $23.9 billion. In fact, 2011 is shaping up to be the best year ever in the IPO business since those heady days at the turn of the century. Just how have these IPOs performed since launch? Letâs take a look at several of the biggies. Like clockwork, the Internet is all the rage again in the hottest of the IPOs. Companies like Linked In (Nasdaq:LNKD), Russiaâs equivalent to Google (Nasdaq:GOOG), Yandex (Nasdaq:YNDX), and the Chinese social networker, Renren (Nasdaq:RENN) have raised billions via their IPOs in the last several months. Even larger launches are pending this year for Internet firms like Groupon and Facebook. While soaring on their launch day, enriching the lucky few to get pre launch shares, most of these biggies have disappointed investors with their actual market performance. For example, Yandex soared 55% on its first day of trading but has given back about 14% since that time. LinkedIn also exploded on the first day but has fallen back about the same percentage. âLinkedIn had the combination of a small float plus investor excitement, and thatâs what caused it to have such a major spike,â Darren Fabric, managing director at IPOX Capital Management LLC, explained to the Wall Street Journal. The good news at LinkedIn is that lead investment bank in the IPO, Morgan Stanley(NYSE:MS) still owns 23% of the shares. This seems to be a vote of confidence in their baby, to say the least. Renren is perhaps the most risky of all the new IPOs. Launched at $14 per share, price rocketed to $24, but now has fallen back to under the initial price of $14. China is a gigantic country, but letâs face the facts, it remains very restrictive for free enterprise. Add political risk to the already risky social space and itâs a recipe for trouble. Now with the hugely anticipated IPOs of Groupon and Facebook pending, will they make good investments right off the bat? Well, if the performance of other internet IPOs is any signal, the answer is no. There will be many ways to play these companies in the future, but going long soon after the issue date doesnât seem to be a smart move. Good Trading!
I am doing the same thing. I saw short on my chart and I saw what you were saying also. I was in for 10
SURF ALERT< SURF ALERT Closing shorts @ 1266.50 all 10 ES FLAT FLAT FLAT still maintaining bearish bias, but simply capturing profits pre weekend. will await next entry point
I had a profit target of 1265.75 and got that one The next profit target is 1250 based on daily chart so if market stays short could take a week or so to get to 1250
Ha! I guess I could have squeezed out a couple of more points from the drop, but taking the profits should prove to make the most sense. The pressure meter on the bearish side eased enough to exit the trade--- will re enter when/if the signal hits. have a great weekend, RCG. surf
I hear ya market surfer bottom line is taking profits eventually. Whether you do it early (IN PROFIT) or hold on a little longer (FOR MORE PROFIT) profit is profit letting winners run closing only half of position for profit. Lowering stop below break even to guarantee you lock in profit on your last position and catching the market move open Sunday which would probably be further short (IS JUST MORE PROFIT). Profit is Profit Have a good weekend and good call short been a lot of others said go long. Even gold was short today.
Profit target?? You can't use complex words like that on the smurf report. Smurf has never heard of such words. Here's my wedding present to you smurf, bc you are a character. Santiva. EPrado--sent you an email. Interested to know your thoughts.