Where can I know the performance of different new stock on the first day (open and close)?
Is it normal that a new stock will gap up on the first day?
Is it normal that a new stock will gap up on the first day?
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IB IPO Auction System
- Thread starter Trader_Herry
- Start date
A share price of $25 puts the value of the entire company at $10bil. Merrill has a market cap of $81 bil, Goldman $96bil, Lehman $41bil, Schwab $24.5 bil, and Tradestation, $603mm, just for reference.
If you think IB can increase revenue over time while maintaining very low staffing levels and expenses, then the company may very well be worth $10bil. OTOH, they did a pretty good job of outlining some of the risks to their business in their prospectus, and I am a bit skeptical. I also wonder to what extent the personnel expense line item has been held down by stock grants.
As for dutch auction strategy, it is fine for one individual to bid $100 for shares and pay the expected auction price of +-$25, but if there are too many people following this strategy you may end up paying $50. If I really wanted to get in on this IPO I might bid $30, but I wouldn't bid $50 or $100. My only experience with dutch auctions has been US Treasury auctions, and dealers very often unintentionally end up paying a greater than market price by using this very strategy.
If you think IB can increase revenue over time while maintaining very low staffing levels and expenses, then the company may very well be worth $10bil. OTOH, they did a pretty good job of outlining some of the risks to their business in their prospectus, and I am a bit skeptical. I also wonder to what extent the personnel expense line item has been held down by stock grants.
As for dutch auction strategy, it is fine for one individual to bid $100 for shares and pay the expected auction price of +-$25, but if there are too many people following this strategy you may end up paying $50. If I really wanted to get in on this IPO I might bid $30, but I wouldn't bid $50 or $100. My only experience with dutch auctions has been US Treasury auctions, and dealers very often unintentionally end up paying a greater than market price by using this very strategy.
Quote from Jaxon:
A share price of $25 puts the value of the entire company at $10bil. Merrill has a market cap of $81 bil, Goldman $96bil, Lehman $41bil, Schwab $24.5 bil, and Tradestation, $603mm, just for reference.
If you think IB can increase revenue over time while maintaining very low staffing levels and expenses, then the company may very well be worth $10bil. OTOH, they did a pretty good job of outlining some of the risks to their business in their prospectus, and I am a bit skeptical. I also wonder to what extent the personnel expense line item has been held down by stock grants.
As for dutch auction strategy, it is fine for one individual to bid $100 for shares and pay the expected auction price of +-$25, but if there are too many people following this strategy you may end up paying $50. If I really wanted to get in on this IPO I might bid $30, but I wouldn't bid $50 or $100. My only experience with dutch auctions has been US Treasury auctions, and dealers very often unintentionally end up paying a greater than market price by using this very strategy.
keep in mind that the retail brokerage is only 14% of revenues (although up from 7% the yr prior)
Trader Herry,
Check out the following info:
http://www.interactivebrokers.com/IBIPO/index.php
http://ipo.interactivebrokers.com/
I hope this helps.
Tom
Check out the following info:
http://www.interactivebrokers.com/IBIPO/index.php
http://ipo.interactivebrokers.com/
I hope this helps.
Tom