I believe China.com will be huge and long term will be strengthened with market strength, revenues, associations with all the "big boys" in the internet already - China.com will be the entry vehicle for access into the Communist country but don't count on much other than goods to be coming out. Where the US and free world has hundreds of millions on the net at best; China alone has billions ready to go "online". Computer companies have been busy for the past three years "giving" systems away in order to endear themselves to the communist regime in hopes of "selling" their hardware in the future. China's future has now arrived, it will be up to the Communist regime to dictate the terms of enterprise and the acceptance of those terms by the rest of the world.
As far as the IPO price going up - no telling how far it will rise and at what price people will be foolish enough to buy. IPOs have become a "gamblers" game - this one has the markings of a big run but there will be alot of people that will be "raising the ask" just to see how high fools will run. There were lots of fools in the first quarter of this year paying some 200-250 bucks for a stock and now several of those great stocks are trading at their true valuation of around 90-100 bucks, and even those prices are generous.
If you do not have an account with Lehmans (underwriter of the IPO) you won't be able to put your order in for the IPO before public release at around 15 - 20 bucks; so just sit back and watch the frenzy and in about 3 months see where the bodies lie then look at how the performance of China.com is doing, then decide if and where to enter.
IPOs to me have become a way for companies to get HUGE and unreasonable market capitalization without any performance or history to back it up; they have become about as volitile as OTCBB stock issues and deservedly so. Just be cautious.
I'd say your price at close of $45.00 is too low. This pump up the IPO on China.com has been in the Financial Times, Der Speigel, London Times, and I am sure in Chinese and Japanese papers - more than US participants will be running with this IPO. BUT this is just our little contest D-Man and I don't know anything about anything and am probably WAYYY off.
BTW - I am doing fine today - got up at 6 am went for my 3 mile walk before the blistering heat and humidity set in; took Bart for his AM ride around his "hood"; spent 4 hours helping my husband with yard work and am now cleaned up and ready to quilt. Oh yeah, I put the parrots outside so they could scream and wake the entire county up! See, I don't just pester people on SI, I pester everyone at least once, I'm just ornery. My husband is so conservative you wouldn't believe it, opposites attract, we provide each other entertainment I guess, for the past 20 years. :)
Take care and I hope your coming week is profitable and you have good health to enjoy it all. Jacalyn |
