IPO's is it worth targeting these?

chucknorris

I was wondering if it would be worth targeting IPO's? If so does anyone know if there is a dedicated website for these, or is it a case of just keeping a watch out the.

If anyone does this I imagine you get some awful ones now and again, but overall does it make sense to target IPO's?

EDIT: http://www.hl.co.uk/shares/ipos-and-new-issues

brasso

chucknorris wrote: »

If anyone does this I imagine you get some awful ones now and again, but overall does it make sense to target IPO's?

I don't think it makes sense as a matter of policy i.e. you wouldn't just blindly buy into all IPOs, regardess.

They are perhaps tempting because we think there are bargains to be had -- which I guess there are but you don't usually know this until after the sale.

All stocks are a gamble and IPOs tend to be a bigger gamble. And then the question is -- do you have a trader mentality and just sell up halfway through day one, happy with your 5 or 10% profit? Or do you sit it out and hope for 100%, while risking it crashing?

They are all individual decisions.

chucknorris

brasso wrote: »

I don't think it makes sense as a matter of policy i.e. you wouldn't just blindly buy into all IPOs, regardess.

They are perhaps tempting because we think there are bargains to be had -- which I guess there are but you don't usually know this until after the sale.

All stocks are a gamble and IPOs tend to be a bigger gamble. And then the question is -- do you have a trader mentality and just sell up halfway through day one, happy with your 5 or 10% profit? Or do you sit it out and hope for 100%, while risking it crashing?

They are all individual decisions.

Very happy with 5% (or better, the way I view it is that 5% over a couple of weeks or so is over a 100% PA). I don't want to hold individual company shares long term, although if they fell I would probably tend to hold rather than lock the loss in, yes I accept that they could fall further. I would only be doing it for small amounts between 3k and 10k, I wouldn't want to risk a lot, so if it fails no harm done really.

Anyone got any views on Infinis Energy?

srcandas

chucknorris wrote: »

Very happy with 5% (or better, the way I view it is that 5% over a couple of weeks or so is over a 100% PA). I don't want to hold individual company shares long term, although if they fell I would probably tend to hold rather than lock the loss in, yes I accept that they could fall further. I would only be doing it for small amounts between 5k and 10k, I wouldn't want to risk a lot, so if it fails no harm done really.

Anyone got any views on Infinis Energy?

Nothing wrong with stags and looking at the past if you do it often enough you do ok.

Of course one advantage is you only pay to sell and as you rightly say your money isn't tied up long.

But equally you also cannot determine how many shares you are going to get. If over subscribed you will be scaled back so you might think the very best ones you will get less and the dogs you will end up with more.

But I wouldn't want 90% of my portfolio being IPO money. But they are great fun and easy to research in the sense an IPO leads to lots of focussed attention.

As for Infinis see the thread for it

chucknorris

srcandas wrote: »

Nothing wrong with stags and looking at the past if you do it often enough you do ok.

Of course one advantage is you only pay to sell and as you rightly say your money isn't tied up long.

But equally you also cannot determine how many shares you are going to get. If over subscribed you will be scaled back so you might think the very best ones you will get less and the dogs you will end up with more.

But I wouldn't want 90% of my portfolio being IPO money. But they are great fun and easy to research in the sense an IPO leads to lots of focussed attention.

As for Infinis see the thread for it

Good point about the scaling back, so going in at different amounts, depending on your perception is a must.

Like you say, a bit of fun only, I wouldn't be investing more than 0.5% of my portfolio in any one share offer (and that amount would only be on the likes of Royal Mail).

coastline

Shares are usually out of favour at least once a year...sometimes a general market trend or a setback within that company..
Theres a fair chance of a rebound at some point....just as much of a chance than the IPO approach.
I use a stock filter to keep check on these situations normally FT100 companies...
Set the link below to Index-FT100...display results...then hit the 3 month tab to view basic 3 month charts...

http://www.iii.co.uk/markets/?type=stockfilter

Do a bit of research...have look at the brokers forecasts...

https://www.share.com/find-investments/advanced-finder/company-overview/?epic=BARC

Barclays...Centrica...SSE...theres a few well of recent highs....
If its a small part of a portfolio then why not stock pick...most investors on the forum I'd guess are long term fund buyers...its not for everyone.

Reaper

I am wary of IPOs, particularly when people start getting excited about them and the offer prices creep ever upwards.

I found an article here which is positive about them but has an interesting table showing how they have performed since 2008. For brevity I have average them all out, I suggest you check the article for the original figures.

Average return after 1 day: 4.05%
Average return after 1 month: 6.8%
Return to date: -8%

My rule of thumb is to go for government privatisation IPOs but stay clear of private ones. Though as with all rules there are exceptions.

tom9980

chucknorris wrote: »

I was wondering if it would be worth targeting IPO's? If so does anyone know if there is a dedicated website for these, or is it a case of just keeping a watch out the.

If anyone does this I imagine you get some awful ones now and again, but overall does it make sense to target IPO's?

EDIT: http://www.hl.co.uk/shares/ipos-and-new-issues

Betfair's IPO was a complete disaster, even before it happened those with industry knowledge knew it was overpriced, it did indeed crash hard

http://uk.finance.yahoo.com/echarts?s=BET.L#symbol=bet.l;range=5y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

Twitter on the other hand is not just all about twitter they have lots of sideline startups such as Bootstrap much like google with android for instance so its not a surprise to me the price has risen so much, its a company that is investing heavily in new tech.

I think it would be very wrong to blindly back all IPO's even despite my knowledge on the above meant i guessed right, i am just a small fish in a huge pond afterall.

billchecker1

Took a punt (AKA gamble) on Twitter yesterday. My broker didnt allow me to buy so used my spreadbet acct.

I am very wary of leverage so deposited £100 for a 0.24 pp bet. After an hour, I was up £60, set a stop for a riskless trade. Price then dropped suddenly and I got took out around half 8 for a princely gain of 11:15!

Still a 11.5% gain fro day isnt bad! lol. In fact its probably higher as I had set a stop from early on.

FYI I think it may shoot up again today but am too scared to go for another gamble.