Drake,
<<company itself, thought it was worth $184, wouldn't they have done the initial offering at a higher price? >>
I don't know if this has been offered yet because I don't read all the posts..But the reason IMO, that the insiders and underwriters price an offering way under the expected "trading price" is to have a "springboard effect" for a greater price in the after market.. It creates momentum..
If they priced this at 125.00.. not as much Momentum would have been created.. maybe a run to 180 and back 1/3 to my-god, the offering price, and maybe even break the syndicate bid..
So in the long run, not as much money is put in the company coffers, but the insiders, the venture capitalists, etc. wind up with a higher share price for when the lock up periods end.
And for the the people who bid it up.. and are currently and maybe temporarily stuck with high price shares, it is unfortunate but this is a cut throat business.. Hopefully they will learn to place limits ..and make it back..
On aftermarket plays, I always have limits, If something gets away, so be it.. Another train will be coming in soon and maybe I can hop aboard..
Just my thoughts and good luck all .....coug |
