After 3 IPO’s in just a span of 4 weeks I thought of checking how all the IPOs of 2014 faired if December 5 was set as the cutoff to look back and check each stocks. As you can observe not all stocks have the same duration of measurement. I am just showing this as a point of study to come up with several points. What’s great about this though is that the IPOs would provide extra funding for these companies to expand which will create more jobs and help make our economy even bigger and stronger!
Based on the charts below, here’s what we can oberserve:
1. Not all IPOs are created equal. Companies with a lot of story and hype will move quicker than those with not much attention, as what we all saw in X and DD where we saw there stock prices jump up on the first few days of trading.
2. Not all stocks would be up in the first few days. TAPET and TFHI both dropped days after the IPO.
3. For stocks that would go up, a correction could eavily follow when initial investors take profit on the stock.
4. Buying an IPO does not mean you are guranteed of a gain even if you are in it for a quick buck or in it for the long term. Take a look at Cebu Pacific.
5. An IPO does not mean that the stock is cheap.
My point point is that before going into any IPO, study. You can never go wrong if you study. The more confident you are in what you are doing the better. If you missed out on any good IPOs in the past, don’t worry more new ones will come your way or corrections will allow you to buy the stock at the price that is relatively cheaper. Trade with a goal and with an end in mind. It’s time to be financialy free and win in the stock market!
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If you’d like to learn more how to invest in the stock market and learn how to make your money work hard for you. I’d like to invite you to our upcoming events:
- December 5th Stock Smarts Singapore 2014 (Basic) – Day 1
- December 6th Stock Smarts Singapore 2014 (Technical Analysis) – Day 2
- December 13th Market Outlook and the Top 10 Stocks for 2015!
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