Wall Street is seeing a plethora of Initial Public Offerings (IPO’s) here in the first half of 2019. They are almost as frequent as Easter Bunny sightings over the past weekend. Should you be snatching them up like kids at an egg hunt, or should you be wary like parents trying to keep their kids from overloading on chocolate eggs and peeps? The answer is of course different for each of you, your unique goals and risk tolerance play a vital role in that decision. IPO’s can be exciting, something formerly "restricted" is now about to become available to "Joe Public." The road show ahead of listing is truly a marketing tour to promote their "product" which is of course themselves. There is nothing wrong with eating a chocolate egg or peep now and then, you simply don’t want to make a steady diet of them, it might be fun, but it’s not healthy.
IPO’s while not unique, are a special group. They carry their own risks and rewards, as the investing public begins to submit buys and sells for previously non-traded shares, some kind of trading "diet" begins to take shape. You can find Easter candy for weeks ahead of the big day, some at regular price and some on sale; if you wait until after Easter what did not sell out goes on super-sale, but do they have what you want? Your risks on a $3-$6 bag of candy are not really so great, however, investing in IPO’s should be done with a little more knowledge and research. If you have questions around IPO’s, the team at Utica Capital is happy to answer your questions and share how we work with clients who are interested in newly traded stocks.
Have a great week, and I hope you found all the Easter Eggs hiding in those corners.
Past performance is no guarantee of return, this is not a solicitation or recommendation on any publicly traded or soon to IPO company.