Just to let you in: typically about 3 weeks after IPO, all of its underwriters will iniate coverage of the stock. Depends on the stock, it will be rated according. In this case, DCLK is considered a red hot stock like RMBS, YHOO or AMZN.
In its first two days of trading, as I tracked every trade myself through my system, all initial shares exchanged hands once, meaning everyone who owns the stock owns it about at 28, not including insider shares which are not released yet.
So for anyone else who wants to buy the stock, they have to pay more to buy it. Based on DCLK recent sell volume, it's easy to figure it out that hardly anyone who bought at 28 would want to sell at current price level- remember no shorts are allowed yet since it just went IPO.
If you see the last two days of action, you can clearly see that fund managers/institutions are buying heavily into the stock. I tracked at least 8 25,000 shares exchanged hand today alone- someone already knows something about the upcoming upgrades.
I have no doubt that Goldman Sach's and Alex Brown have told their people to start buying the stock- unfortunately individual investors know it only when they come out with the upgrades.
So by watching the stock trades and by remembering 3 weeks after IPO, people like you and I can also jump in on the stock. I aslo have technical software which when DCLK at 28, indicated to me it was time to buy and I am lucky enough to buy at 28! ( I also bought VRSN at 28. )
I do agree with others that DCLK is heading to break old high of 35 into the 40's. I also think BUY recommendations are likely in stead of NEUTRAL or HOLD since DCLK is a red hot stock. |
