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To: Ibexx who wrote (83309)6/14/1999 8:49:00 AM
From: Amy J  Read Replies (1) | Respond to of 186894
 
OT Ibexx, RE: "I'd be glad to share my limited experiences in buying hot new issues at official IPO prices."

Thanks Ibexx for the info.

Ibexx & for those who invest in IPOs...

How does your firm handle: a) undersold deals and b) allocations in hot issues?

Have you noticed a significant difference in # of shares allocated between hot issues vs. not-so-hot deals? What is the ratio? 1:2?

Which brokerage firms push undersold deals to their clients? (i.e. which firms to avoid?)

RE: "the respective broker told me allocation was strictly based on the client's total assets and frequency of trading."

How much trading? i.e. how much trading yields how many IPO shares?

e.g. X annual commission fees = (yields) Y IPO shares offered,

==> what's X & Y?

A contact who has substantial assets at one firm, but who doesn't trade, is consistently offered 100-300 IPO shares (i.e. # of IPO shares offered is dependent upon comm fees; indep of asset size.) What do annual comm fee expenditures need to be to get above 300sh? I assume this is an industry figure (i.e. # shares offered per annual amount spent on commission?)

Which firms make # of IPO shares offered independent of comm fee spent and asset size? Anyone who has this info, I would be happy to know via PM. thanks.

RE: "The rule of thumb is that any IPO shares that "they" solicit your interest in are probably not worth having."

Thanks for the information, makes sense. (Maybe not always true - Inktomi was solicited to me.) The key is figuring out when a solicitation is not-in-favor - outside of analyzing a prospectus and asking around, maybe there's also a hint in the # of shares allocated.

Unrelated, I'd like to understand how many shares are generally allocated to clients in IPOs per the amount spent in annual commission fees.

Thanks in advance,
Amy J