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Microcap & Penny Stocks : Dollar and Under Sleeper Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Carl Brehm who wrote (1180)	10/26/1997 11:25:00 AM
From: Deeber	Read Replies (3) \| Respond to of 8835

Just a quick note on IPO's. It is know that the only IPO's that are offered to individual investors are the undersubscribed IPO's, those that the large retail investors did not want. The best IPO's that make the greatest first day gains, are all purchased by these retail investors, i.e. Mutual Funds. The only people that get shafted are the individuals who but the first day only to see it drop in the coming weeks. The best thing to do is wait until it settles down if it is a hot IPO, to get in after the big boys sell. Also, the only individuals who are getting the IPO's are "high net worth" clients. If anyone who has accounts under 500K gets a call from a broker about a "chance of a lifetime" IPO, stay away. There is a reason why the big boys did not want it. Take a hint. FYI, after 3 years, the average IPO is worth 70% of it's offering price. Look at Netscape and Boston Chicken, 2 of the hottest IPO's ever. Have they EVER been back to the levels of the first day of their IPO?? NO. As all of us lost our shirts on them, the retail investors made 100%+ on just one day. In my opinion, stay away from IPO's. Wait to buy until they fall off their first day highs. If the big boys turned them down, I sure as hell don't want them! Ryan