Lot of IPOs hitting the market. As a general rule, I stay away from applying for IPOs. Here are a few reasons why ππΌ
1οΈβ£ Companies are dressed up a year or so before IPO to allure investors
2οΈβ£ Insiders get an opportunity after waiting for years to liquidate their investment
1οΈβ£ Companies are dressed up a year or so before IPO to allure investors
2οΈβ£ Insiders get an opportunity after waiting for years to liquidate their investment
3οΈβ£ Most IPOs are aimed at giving insiders an exit rather than raising growth capital for a company
4οΈβ£ I look at IPOs 3 to 4 quarters out, this gives me enough clarity on what the company has done post raising funds. By this time insiders had liquidated whatever they wanted to.
4οΈβ£ I look at IPOs 3 to 4 quarters out, this gives me enough clarity on what the company has done post raising funds. By this time insiders had liquidated whatever they wanted to.
5οΈβ£ The initial exuberance dies down post 3 to 4 quarters and price action settles down
This strategy has worked out for me quite well and has prevented me from sucking into the euphoria of market.
This strategy has worked out for me quite well and has prevented me from sucking into the euphoria of market.
Lots of Examples being throw at this post of IRCTC, Happiest Mind, Burger King, DMart.
I do not apply for 1 lot of listing gains, my portfolio moves by more than that in a given day.
Applying for an IPO for listing gains = gambling (in my opinion)
I do not apply for 1 lot of listing gains, my portfolio moves by more than that in a given day.
Applying for an IPO for listing gains = gambling (in my opinion)
https://twitter.com/itsTarH/status/1413166729006489602?s=20
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