Repost from Ragingbull IPO board. -- On a risk/reward basis, it?s better and safer to play some parent companies of upcoming IPOs.
NETA is a parent company of McAFee (MCAF). DZTK is a parent company of PFSWeb.(PFSW).
A much better one is IMP, which is the parent holding company of OPAY. Also mentioned at Ragingbull IPO editorial [ ragingbull.com ]Unlike other parent companies, IMP has attracted little attention so far and rendered it a much safer play.
But there is always a risk of general market decline. So if you enter a long position, better to buy a few puts for protection. IMO, financial companies that have been at record level would decline more in a general market downturn before Y2K. I myself bought some puts on Citigroup a few days ago, but I chose some out of money options so they don?t move that much.
I have watched HCNS went up with RETK; GIC up with NXTV [ ragingbull.com ]; VOCL up with ITXC; and this time again, due diligence should pay off. Recently, I have been right on TZIX [ ragingbull.com ], APLN [ ragingbull.com ], HUM, Interest Rate [ ragingbull.com ], and some other things and I think I have spent adequate due diligence, out of my limited time, on IMP. |
