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Moolah
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| Joined: | Sun Jul 9th, 2006 |
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Posting #1: Sat Mar 29th, 2008 04:34 |
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'Consider sector firms operate in before investing in IPOs'
Published: 2008/03/29
INVESTORS should seriously consider the sector in which companies operate before investing in their initial public offering (IPO) issues, says MIMB Investment Bank.
The bank has found, based on a study of IPOs last year, that when it comes to IPOs listed on the main board, those in the plantation and oil and gas sectors, as well as real estate investment trusts (REITs), enjoy brighter prospects and promise better returns.
On the second board, it said there was no clear formula for success, but noted that unlike main board firms, industrial products and trading and services firms had outperformed.
It noted however that with the upcoming year-end merger between main and second board companies, the impediment to institutional investors in regulated industries taking a position in second board companies will be removed.
This, it said, promises to remove differences in post-IPO performance by board that is now observed.
There were 27 IPOS on Bursa Malaysia last year, with an initial market capitalisation of just below RM1 billion. Of these, 16 were listed on the main board, eight on second board and three on the Mesdaq market.
Most of the IPOs (41 per cent) were from the trading and services sector, while 15 per cent were REITS.
Of the main board IPOs last year, 56.3 per cent have offered positive returns from their IPO prices, while 43.8 per cent have negative returns. The percentage of underperforming stocks was high for second board and Mesdaq counters.
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WarrenJ
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Posting #2: Mon Mar 31st, 2008 06:41 |
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Investing in IPO very easy, let me share with everyone one secret that will earns you great money.
1st - must have lots of moolah, borrow from relatives and friends if they are ok.
2nd - appply to the max no of shares your cash could go
3rd- pray hard
4th - be aware of the listing date
5th - sell 90% of holding on the 1st trading day, if the following day not free sell 100% on 1st trading day ( can start counting the profits )
6th - the remaining 10% see got chance to make more on the 2nd day of listing
Sounds like fun, try it !
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random
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Posting #3: Fri Apr 4th, 2008 09:17 |
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Warren,
Really ah? I've never tried this technique before.. but borrowing to buy IPO sounds rather iffy
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WarrenJ
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Posting #4: Mon Apr 7th, 2008 11:30 |
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What I obesrve is a "face" opening where the price will trade above IPO price otherwise it won't look good on so many people especially merchant bank who underwrote the IPO.
Once the "hotness" subside we would see a "real" price people are willing to pay.
The idea is to profit from listing day only, no intention to hold.
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