IPOs and Stock market BULL RUN..

1st · 1 IPOs and Stock market BULL RUN.. Sat Feb 26, 2011 9:20 am

1st

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I personally think we all need to be bit carful and analyze how the market will function in next 10 months of this year. I read an article on BULL RUN of CSE. They said New IPOs will settle down the situation and CSE will introduce GOLD trading as well... These things will give investors an opportunity to invest in more companies, rather than chasing few good set of companies which results over valued stocks…. I’m sure we all have to change our strategies a bit in order to face this situation... I’m still thinking... We all need to think/analyze in detail…

Secondly in future, IPOs will not give that much of profit as we get in Singer, ODEL etc..

If Foreign investors are coming to SL market, then I think the situation may settle a bit.. If not this will create a new era of the stock market.. Earning huge money in short term will not be possible in future.. Market will be fully driven with fundamental in future for sure.. Which I think very good.. But who bought share without considering fundamentals should think twice.
Experts… Up to you…

mark · 2 Re: IPOs and Stock market BULL RUN.. Sat Feb 26, 2011 9:33 am

mark

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"Secondly in future, IPOs will not give that much of profit as we get in Singer, ODEL"

i'm not a expert......
but you can't say IPO wouldn't give good returns........
there is more IPO's on the way better than Snger,Odel or UB..........
for a amateur investor, it's better to start from IPO's......more than start from secondary market........... Smile

1st · 3 Re: IPOs and Stock market BULL RUN.. Sat Feb 26, 2011 9:55 am

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This is how I analaize it.

1. Big IPos will come with BIG bank gurantee. and lot of IPOs mean.. external funds should come to market.. let say 5 bill IPs mean 5bill should come to the mrket from out side.. 50 IPOs means how much money should come to th market.. Two ways.. existing shares should be soled and invested on IPOs or investors need to invest new money..

there is a break even point in this game.. we'll see what will happen.

mark · 4 Re: IPOs and Stock market BULL RUN.. Sat Feb 26, 2011 10:13 am

mark

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1st wrote:This is how I analaize it.

1. Big IPos will come with BIG bank gurantee. and lot of IPOs mean.. external funds should come to market.. let say 5 bill IPs mean 5bill should come to the mrket from out side.. 50 IPOs means how much money should come to th market.. Two ways.. existing shares should be soled and invested on IPOs or investors need to invest new money..

there is a break even point in this game.. we'll see what will happen.

*IPO are good source which bring fresh capital to the market,many employees and customers go for the IPO of their firm,with their savings........so it's a way to increase the CDS accounts and turnover of CSE.....

*I agree with you that more are bank guarantees,but from them also money will inject into the market...

*selling existing shares and invest in IPO also will make temporary volatiles in the market.but later it will come to pre stages..

*so to me IPO's are the best way to increase the market sentiment and amount of investors in the market....... Smile

UKboy · 5 Re: IPOs and Stock market BULL RUN.. Sun Feb 27, 2011 12:46 am

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mark wrote:"Secondly in future, IPOs will not give that much of profit as we get in Singer, ODEL"

i'm not a expert......
but you can't say IPO wouldn't give good returns........
there is more IPO's on the way better than Snger,Odel or UB..........
for a amateur investor, it's better to start from IPO's......more than start from secondary market...........

Yes agreed with Mark

achala75 · 6 Re: IPOs and Stock market BULL RUN.. Sun Feb 27, 2011 7:48 am

achala75

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Why not we try to analize this situation positively.CSE is a small exchange in the world and therfore is not big enough to attract large scale foreign investors. Therefore we need more companies in the CSE. With the increased number of listed companies and volume of shares CSE will be more attractive. Large scale foreign fund managers donot find sufficient number of counters and stocks in our market. Hence More IPOs are welcome at this time.With the incease of supply side demand also goes up. Just look at the UB IPO. Demand is for 225 times of the shares offered and accoding to announcement the value of the shares requeted is over Rs.84 bln.Therefre I dont think that new IPOs would affect the price level of existing stocks.Sometimes this will cause for increasing the demand for existing counters as well. What realy want now is a larger number of counters in the CSE to attract more locol and foreing investors.

tubal · 7 Re: IPOs and Stock market BULL RUN.. Sun Feb 27, 2011 9:23 am

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Buying at IPO price is one thing, buying at a premium of 200% on the opening day is something else alltogether. I might even say it's borderline insanity.