Finance people advice needed : ICBC IPOs

[Bululu]

I am willing to invest some money for the first time on this banks IPOs , the Bank is the biggest Bank in China and all the big financial institutions are running in the primary market to buy this IPOs, do you people think it will be a good investment???

[AndyH]

Re: Finance people advice needed : ICBC IPOs

Be v v careful. IPOs are a risky business and they use all sorts of tricks to hype the price and demand for the stock. Often what happens is the institutonal investors will have got a cheap price early on and may sell soon after the flotation for a quick profit. The selling of so many shares will of course decrease the share price and there is no guarantee it will go back up, leaving the minnows like us with a loss!

Do not get sucked into the trap of going from a short or medium term investment to a long term investment just because the trade does not go as expected. Is very easy to think 'its bound to go up eventually', but thats not necissarily true. Set urself a limit of how much u are prepared to risk and if it gets to that point... sell it! Also, do not use money that u cannot afford to lose..

Good luck..

[Lorn]

Re: Finance people advice needed : ICBC IPOs

Do not use money that u cannot afford to lose..

Thats what it is all about.

[Bululu]

Re: Finance people advice needed : ICBC IPOs

I am looking for a quick money make , its expected togo up ery quickly as soon as it reaches the Primary market. and yes i am going to invest the money i cant afford to losse.

[day_for_night]

Re: Finance people advice needed : ICBC IPOs

how do you have access to the IPO?...most IPOs go as large blocks to institutional investors some of which are then are given to high net worth clients in smaller blocks. if you have access that way, then yes. If you are getting in on the table scraps of the IPO at an inflated price, i'd go see your advisor (if you have one) and get a second opinion. still...most IPOs close their first week higher than the price paid by people who got in at the ground floor. just don't wait too long to take a profit...

[Bululu]

Re: Finance people advice needed : ICBC IPOs

day_for_night I am waiting for the IPOs to go on the secondary market , and buy them like everyone else , and no I dont have an adivsor , I am investing for the first time and thats why I came to ask here because I know some of us here have a good experience in Finance and Investing .

[AndyH]

Re: Finance people advice needed : ICBC IPOs

Without wishing to sound confrontational in anyway, what are ur reasons for investing in an IPO if u have never invested before? They are pretty high risk compared to other investments...

[day_for_night]

Re: Finance people advice needed : ICBC IPOs

day_for_night I am waiting for the IPOs to go on the secondary market , and buy them like everyone else , and no I dont have an adivsor , I am investing for the first time and thats why I came to ask here because I know some of us here have a good experience in Finance and Investing .

you need to do your research then...can't expect to be a good investor if you dont. find out what analysts (from companies NOT involved in the IPO) are putting as a target price for the stock within 6 months to a year after the IPO based on fundamentals. see what other companies in the same industry trade at in terms of P/E ratio, and compare what the stock's IPO is at in terms of P/E. If the P/E of the IPO is significantly lower than idustry average, there may be an opportunity for profit. but there is no guarantee.

find some analyst documents on the company and read up...its not an easy task and I wouldnt expect anyone other than yourself to put in the time.

good luck!

[Bululu]

Re: Finance people advice needed : ICBC IPOs

^^^^ Thanks day and I am willing to autoteach myself and do the search ,thanks again for the advice mate.

[Jenks]

Re: Finance people advice needed : ICBC IPOs

How about seeing what Hamas has to offer eh?