IPO or secondary market what is the best ?

STOCK HUNTER · 1 IPO or secondary market what is the best ? Wed Jun 29, 2011 1:41 pm

STOCK HUNTER

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I have some money to invest. what is the best coming IPOs or secondary market? express your golden ideas for me.

sanjeewa88 · 2 Re: IPO or secondary market what is the best ? Wed Jun 29, 2011 1:46 pm

sanjeewa88

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Waiting is the best strategy at this time.

asitha · 3 Re: IPO or secondary market what is the best ? Wed Jun 29, 2011 2:18 pm

asitha

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---if there is no private placement below the initial price,
---if it is a good fundamental share...

Then go for IPO's by investing small amounts////

EG:Valli-one,Browns,up coming ETI

kam2011 · 4 Re: IPO or secondary market what is the best ? Wed Jun 29, 2011 2:37 pm

kam2011

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STOCK HUNTER wrote:I have some money to invest. what is the best coming IPOs or secondary market? express your golden ideas for me.

Its like this. Every thing depends on the past performance and future prospects of the particular company. Today we have to study more carefully recent action on share issues to old shareholders and if so at what price etc. Sometimes before the IPO a share splits are executed in order to offer some benefits to the old shareholgers. One can justify it if it is happenned in a reasonable manner.But today in most cases this is worst. That is one major reason for falling price below the IPO price within a very short period of time. After IPO old shareholders start selling even well below the IPO price just to make some Quick profit.(because their cost is very low)Eg.FLCH.EXPOLANKA

Not like in the past now we have to be very carefull when we apply for IPOs. Other point is for a IPO of a good company if everything perfect(Assuming no any inside jugglery)applications are receving on the very fist day for very large quantities and then we will get only small potin of requested amount of shares. Un necessarily we will have to block money for about a month. Due to the above reasons I myself now do not apply for IPO s and buy from the market if it is worth after wacthing for few days

giniam · 5 Re: IPO or secondary market what is the best ? Wed Jun 29, 2011 6:59 pm

giniam

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Isn't this more apperent in recent 'Introduction of Shares' by RFC's and others ? They have done splits, bonus shares and what not and then selling to the unsuspecting, gullible retailers at unrealistic prices, unfortunately decided by these same retailers.
Correct me if I am wrong, these proceeds go the respective shareholder, hence no finacial benifit to the company.

kam2011 · 6 Re: IPO or secondary market what is the best ? Wed Jun 29, 2011 7:12 pm

kam2011

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yes brother, I totaly agree with you. most of the companies presently family concern and they get all posible financial benefits before introduction as in the case of some IPO s.