Don't rush for IPOs

dineshfernando · 1 Don't rush for IPOs Wed Jul 13, 2011 11:58 pm

dineshfernando

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It is very clear from Softlogic IPO that IPOs at present will be a nightmare for the investors.

The best strategy is to buy from the market once they list it. You will be paying much less price than the IPO price.

Eg: SHL, EXPO, FLCH, PCH, LGL

All these shares were traded less than or equal to IPO prices after listing.

As intelligent investors, we need to be smart and boycot the coming IPOs. We can buy from secondary market the same shares at a discount.

Aamiable · 2 Re: Don't rush for IPOs Thu Jul 14, 2011 5:49 am

Aamiable

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If the investors can buy for a lesser value after listing what’s the point in applying for IPO? ……If the investment value comes down and suffer losses immediately in future IPOs what is the rationale for such commitments…… Sad

tkc · 3 Re: Don't rush for IPOs Thu Jul 14, 2011 6:04 am

tkc

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Recent IPOs will affect for future IPOs badly.Even though future IPOs are attractive people will think twice.Now I also prefer trading/investing in secondary market is better than investing in IPOs.

Liber Abaci · 4 Re: Don't rush for IPOs Thu Jul 14, 2011 8:54 am

Liber Abaci

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dineshfernando wrote:

The best strategy is to buy from the market once they list it. You will be paying much less price than the IPO price.
Eg: SHL, EXPO, FLCH, PCH, LGL

.

If it is to be a strategy it has to be based on facts , logical and should have been proved in at least over majority of the cases in the past. .
If I remember correct, there were more than 10 IPO's in the recent past, which yielded a higher price on the first day and subsequent days / weeks.

Now , .....Where do your strategy stands ?
Is it conditional ...., then what are the conditions ?

early · 5 Re: Don't rush for IPOs Thu Jul 14, 2011 9:08 am

early

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tkc wrote:Recent IPOs will affect for future IPOs badly.Even though future IPOs are attractive people will think twice.Now I also prefer trading/investing in secondary market is better than investing in IPOs.

True. People will be more selective in the future as secondary market now offers pretty good bargains. Just assume that RICH was not listed in the market and they now went for an IPO with the same number of shares in issue at say Rs. 15/-. The issue would get oversubscribed several times most probably. But now it is available in the secondary market at Rs.10/90. I am not trying to promote RICH here, and have taken RICH only as an example. There may be so many other shares that you would like to mention. But the point is that if you identify good undervalued shares in the secondary market and invest at the correct time, you may make substantial gains in the long run.
These are my views only, and please make your investements in the secondary market after careful study and analysis of the shares, and the trends in the market.

nahor · 6 Re: Don't rush for IPOs Fri Jul 15, 2011 11:48 am

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IPO's have sucked all the liquidity from the market. As it is the common practice in SL, 'kill the goose that lay's the golden eggs'. The share market was doing fine last year, so the regulators dreamed up new ways/methods to mess it up.