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Strategies & Market Trends : Due Diligence - How to Investigate a Stock

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To: ynot who wrote (60)3/30/1999 1:47:00 PM
From: Bob Rudd  Read Replies (1) of 752
 
It's maybe a good idea to have an idea on the base rate outcomes for some types of strategies.
IPO's other than recent internet lunacy, most IPO bets by individuals have been losers according to published research. That doesn't mean the IPO didn't go up, just that unless the lead broker is your uncle you weren't on board. After that initial pop there's often a long period of relative underperformance. Again this is sort of ancient history...as recent net and tech launches have continued to climb into the stratosphere...but fundamentally you're workin without a net.
Mergers: Good for the shareholders of the acquired, not so good for the shareholders of the acquirer.
techstocks.com Also it's rather difficult to outguess the market on the liklihood of a co. being acquired.
Changes in strategy: Using the web as an additional marketing channel for existing products, then sprucing it up and spinning it off when it becomes clear how much someone might actually pay for it is a great thing for many companies..value enhancing for shareholders. Doing a total 180 into a different business that one has no familiarity with and strategic edge in is a recipe for disaster...If you find someone doing that send me a message...I love a good short.
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