Stock lessons: IPOs

Posted in :

Reading Time: < 1 minute

First let’s mark Oct 14 2009: Dow 10,000 2.0 (Yahoo Tech-ticker video below)

(did you notice the Yahoo ~~~ in the end, Yahoo became more goofy under Carol)

My topic today is IPO. I have not got much luck from IPO investing (to be more precise, speculating). My lessons are the following:

1) Avoid buying the stocks sold by private equity (EM, HLYS more precise Capital Southwest is a VC), avoid Chinese IPOs (NINE, XFML recently changed ticker to XSEL, GAME). There were some bright spots on Chinese IPOs (CTRP, BIDU, SNDA, STP, CYOU), but the track record of Chinese IPOs are generally bad. I can bet you a dollar that today’s CRIC (spin off from E-House EJ) will be a disappointment too.

2) GOOG: BIDU vs. MA: V
What do I mean? The market is efficient on this. People missed the huge run of GOOD post-IPO will bid like crazy to get BIDU, thus making BIDU jump from $27 to $120s in its debut. Similar things happened to Visa IPO after the huge success of MasterCard.

3) Do own research, and buy something you know.

Appdendix: Is Google finance (aka tape reading) helping us or hurting us?
Over use, hurting;

proper use, helping

Applied to other tools too.

%d bloggers like this: