within late morning trading"--the IPO charge was $45. Although Groupon pulled within $713 million in revenue not too long ago, it actually "posted a lack of $456. 3 million... nearly 50 % of which was acquisition linked. Traders should a lot more than opportunity: the idea is always to make money, not to debate over time prospects of a company that sells restaurant coupons. When the stock becomes on the market to the public, traders should buy it every day and watch it increase. After it goes in the first day, the self-disciplined trader will sell the idea immediately. The next step is always to wait until reality kicks in and people begin to sell that overvalued shares. At this aspect the savvy trader will purchase long puts (contracts that allow traders to sell 100 share lots of stock for a specified price) to the company's stock in the options market. This will encourage the trader to profit from a decline in Groupon's gives. In this way, traders can make money en route up, and, if that timing is right, in the process down. Additionally, if this goal is fast sales, it will be smart to ignore those who say that the average person has no chance of getting into Groupon at that IPO price. This holds true (typically, only the wealthy and the well-connected get a piece of the IPO at that IPO price) but keep this in your mind: the insiders got LinkedIn with regard to $45. It was $83 by way of the time the average May well got a crack at it. But it was at $122. 70 some hours later. No one should complain about getting in at $83 and selling at $122--even if another individual got it for $45. The trick is to be disciplined and bail-out following your first-day bonanza.Although In my opinion that even the 'small guy' carries a good chance of making money from the IPOs involving hot social-networking companies, the average investor can certainly be forgiven for being skeptical. After all, only a privileged few might get Groupon, Zynga, or Facebook stock at or near the actual IPO price (the rest of us will just have to check out what the stocks open at). Even if one did are able to get some shares at a price that is not too inflated, the first few days to weeks of trading in these issues could be a gut-wrenching roller-coaster ride that can test the discipline together with resolve of even the most level-headed trader. However, being a recent article in your Wall Street Journal ("Is His Company Worth $1000 Thousand " by Shayndi Raice) makes clear, social-networking companies get huge growth prospects. One venture capitalist interviewed through the Journal estimates Facebook's revenue will be around $20 billion per annum by 2015. Investors are looking forward to these businesses and no matter how many analysts and commentators end up and say social-networking companies are overvalued, one actuality remains: these stocks are extremely likely to go up (way up) with IPO day, and their prices are likely to stay inflated--at least for a short while.
With so many of these companies going public this year, traders will miss a huge opportunity if they allow their fear of volatility to keep them over the sidelines.
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Post je objavljen 29.03.2012. u 12:41 sati.