"marketwatch IPO indicated to open at 75-80"
ROFL
Well, that would put it about half the way it needs to go to make its primary holder worth its price...
Understand that when the folks who get together to underwrite an IPO decide what the price is, its usually an accuratevaluation. What is happening, as in the case of TGLO and this one, is theat the second tier market is getting in the picture and saying, "Hey, underwriters, how about if we give you $40 a shre for 80% of the IPO shares you have, and adjust the entry to, say $80?"
"Okay," they say, "Works for me."
So then the IPO goes public and immediately drops and forms a nice bell curve. But guess what, not all the float is traded. that doesn't happen until the stock is going back up the curve and at or above their buyout of the IPO prices. Check the volumes and price action for those IPO's that launched huge.
then sit back, watch Marketwatch, and when it breaks the downtrend in a few weeks, then buy.
lastshadow |
