(31 July 2014) – The web page “IPOs – Are they worth it?” has been updated. Many of us have been sceptical about investing in IPOs; but having done some research and followed some for a while now, here are some really good high profile sample IPOs with price charts to suggest that perhaps there is too much chance of failure to justify the possible rewards of investing in IPOs.
Of course, many investors will invest in a company only because they have a gut feeling that the company should do well. In all reailty, this is basically guess work and speculation.
Followers of technical analysis know the rules very well:- a trend is a trend is a trend.
And a downtrend is a downtrend until it is confirmed to be over. And whilst the downtred is in place, the share price could get cheaper. So any “professional” adviser who suggests to buy it while it is cheaper is failing to point out that the confirmed downtrend in share price means it is likely to get even cheaper.
There are many examples of this over time – including the disappointing blue chip stocks (but don’t get me started on that topic….)