I was allocated 87 lots from both the placement and open public tranche and you understand that’s it! Go through the share-price performance above. The plain thing about me is when I understand I have made a blunder, I cut my losses and proceed. I cut my losses within the first week and realized a 5-figure loss.
Lesson 1 – Don’t ever think the underwriter or broker is on your side. When times are good, you’ll get 5 lots when you suggest 50 a lot. When times are bad, you are given by them 50 lots and ask if you would like some more. You should be concerned if your broker suddenly asked if you would like placement shares one day if he does not have that habit of requesting. Similarly for the ATM, they give you a pathetic few lots when the IPO is hot. I am quite glad that SGX is taking a look at a way to increase the retail tranche for IPOs that are hot. Its time they take action!
When you understand you have made a blunder either credited to misfortune or analysis, pay the educational school fees and move on. Don’t hope for the share price will come backup above water. Lesson 3 – Continually be wary of IPO companies. You will probably find it contradicting after I asked you to be wary. The reason is because I have seen too many tricks that companies and underwriters do to improve the IPO valuation. The complete reason why Companies concern prospectus in the first place is to cover their backside.
They list out a great deal of risk factors and assumptions in a way that you cannot sue them if the firms failed to perform after listing because you are anticipating to learn the prospectus and the chance factors detailed in it! Why do you think a listing prospectus is receiving thicker and thicker in a way that you can carry weights with them. Also, they are basically useless because they do not tell you about future projections and income quotes.
- Don’t be surprised by these changes
- Sales Proceeds – Your net proceeds from the sale (usually reported on 1099-S)
- “Lower Working-Age Population and Secular Stagnation” (November 28, 2014)
- Assets/property owned
- My 3Cs to money/investing
- Load in the truck when you find a great opportunity
The reasons why they play tips is because they’ll want to survey the most earnings in the year prior to listing so that they can achieve the best IPO valuation. Some of the common tricks is to defer prior to sale into the current season to show a growing profit tendency for listing or not recognizing or capitalizing the expenditures incurred etc etc!
There are 101 methods to help enhance profits, so read the prospectus with an enormous pinch of sodium always. For most such reasons, I will not consider IPOs for long-term investments as I need them to prove to me their credibility and background. As you can see, many Chinese IPOs in Singapore flunk post list because the accounting openings are getting too big to cover overtime! IPOs depend greatly on sentiments.
Hence you can see why there is a drought of IPOs this season until July. Where appointments to my blog revived as well instantly. So take note, as sentiments can easily turn sour! Lesson 5 – Keep good records of all your investments. If you wish to be a serious buyer or trading, it is essential you start keeping good records. Ok a lot for now. This year as promised net of fees and expenditures My IPO shows. Not really a lot. 3,223. A 4-D quantity for you perhaps?