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Profiting from IPOs

Discussion in 'Beginner's Lounge' started by Stinger, Sep 2, 2006.

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  1. Stinger

    Stinger

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    Hi all

    I was wondering if anyone had any thoughts on my latest investing technique.

    I have been investing in IPO's and have been profiting from them. Initially i invested in companies from tips, ie copperco, however i recently invested in the Redstone IPO, purchased at 25 cents, sold at 80, then in Ironbark, purchased at 20cent, sold at 40.

    Therefore i have thought that investing in IPO's is a good way to make quick profits. I was wondering if anyone had any opinions on this. Maybe i have just been lucky lately??

    I tried in the UKL IPO however was not issued shares and was thinking of the Mantra IPO.

    Cheers
     
  2. dubiousinfo

    dubiousinfo

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    Re: IPO's

    Glad not to be on this IPO :)



    CMN - Cumminscorp

    16 Mar 2006
    Lists & official quotation commences with Chairman & 5 other directors including the founder Ian Cummins (who holds 64% of the company)
    Share price: 20c shares close first day at 15c

    21 Mar
    Chairman & 1 other director resign.
    Share price: 13c

    30 Mar
    Appoints 1 new director.
    Share price: 10c

    27 Apr
    Newly appointed director resigns along with 2 other original directors.
    Share price: 9c

    28 Apr
    Company secretary resigns.
    Share price: 8c

    1 May
    Trading halt imposed.
    Share price: 6c

    3 May
    Suspension from official quotation.

    10 May
    Another director resigns leaving founder Ian Cummins as the only director.
    Company advises that suspension will continue until Aust Securities & Investments Commission (ASIC) information request is satisfied. Reinstatement is expected to be 31 May.

    1 June
    Company advises it is finalising response to ASIC & reinstatement expected by 30 June.

    30 June
    Company advises it is still finalising response to ASIC & reinstatement expected by 31 August.

    19 July
    Appoints 3 new directors. All 3 new directors are current employees working for the company in sales & marketing.
    Company advises it is searching for new Chief Financial Officer, in the interim an external accounting firm will assist the board in its quest to clarify the company's financial position for the ASIC Response.

    1 Sept
    Company advises it is still finalising ASIC response, no information is given regarding an expected date for reinstatement.
    Advises that Extraordinary General Meeting will be held on 6 Oct.
    No Financial Statements or quarterly results have been released since listing.
     
  3. lancedefrance

    lancedefrance

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    Re: IPO's

    Funny you should bring this up as i have been thinking about these as well. I know someone who made quite a bit of money by purchasing some stock at few cents and selling the for nearly a dollar.

    Is there a website that tells you the upcoming ipos and if they are worth buying?
     
  4. maffu

    maffu

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    Re: IPO's

    Ive heard of people making plenty from IPO's and losing it just as quickly. As shown by the example posted above, when they go bad they can do so very quickly.

    Also as they can open low there is no safety net, stop losses can not be used if it opens lower then your stop loss.
     
  5. nizar

    nizar

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    Re: IPO's

    You have to be SELECTIVE about which IPO u want to invest it

    There is no "general" rule that applies to all

    For example, TOE had the management backing (OXR), it went through the roof, UKL had a JORC, so it did well, UTO had some high grades and the parent company had a good rep from its RHI spin-off which more than doubled on the open, so it did well...

    Eromanga i dont think it will do well because there was no previous exploration success in that area, management are not credible and etc etc...

    Aura Energy (uranium) also flopped

    So clearly u have to be selective

    IMO the way to go is sell on the first day or at least decide what to do on th first day. If high volumes and a good premium on the 1st day close, then it may go for a few more days, but if it goes down then dump it

    Aura energy is now about 12c, but the first day close was 19.5c compared to 20c offer so u wouldnt have lost that much. This float (example above) if u sold on the first day u would have lost 25% but to be honest i would have sold for the reasons mentioned above ie. the first day is a good indicator of the market sentiment and short term price movements

    Market sentiment is very important

    But with uranium floats generally for this year, the best has far outdone the worst and they list mostly at premiums

    Please do your own research and the above does not constitute financial advice
     
  6. sleeper88

    sleeper88

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    Re: IPO's

    so anyone have any thoughts on the UraniumSA float?
     
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