BGlad, the description sounds fine. . .however, they are designed to sound fine. I am generally only interested in IPOs where I know of the company prior to the IPO. . .
Yesterday OnVia went public. . .I had bought software from them 6 months ago. . . and was familiar with their business. . . But on IPOs where there is doubt about who they are or what they do. . . I apply the same "extensive" DD requirements that I would a penny stock from Vancouver, Las Vegas or the like. . . .which means, I would have to have direct evidence of their business and in some cases it would be necessary to fly to their headquarters to take a look around. In other words, I never BELIEVE what I am told in an IPO prospectus. . . I want to see the management, orders, inventory, production and employees with my own eyes.
The assumption is that all IPOs are scammy, unless proven otherwise.
Some IPOs I was interested in on the first day, due to knowing the company. . . For months we looked forward to the PLUG IPO. . .we had already known it was a very REAL company. . I've worn SKX [Skechers] shoes for many years. . . I've met LQID [Liquid Audio] executives on two ocassions and they gave me samples of their mastering software for my review and use.
I wish I had known about the SVNX IPO. . . .I had been waiting for a company to step up and offer brokerage services to regional banks. . . and I regret not reading through every business description of every IPO. . .because if I had. . . SVNX would have been another PLUG, where we buy on opening day and hold. . . with the intent of averaging down on any dips.
But again, these are companies we know. On those we don't know. . . the risk rises dramatically. . . it becomes a crap shoot on whether or not the price spikes.
Incidently, PALM is selling 23 million shares at $38 each. . which is TWO-THIRDS the size of 3COM!! If it spikes, it could surpass the entire COM company. Once more, COM is going to offer PALM shares to COM shareholders. . . that seems like the best way to get coverage.
Rande Is |
