The Dollar Stretcher - Money


Newsletters Email
Print Contact Editor
RSS Feed Share


The Reluctant Investor
Are IPO's for You?

by Matt Stamski
mstamski@gomez.com


Plying the IPO waters is like fishing for Swordfish in the north Atlantic; feast or a chilly famine. A good catch can lead to a huge upside; just take a gander at EarthWeb's gaudy upshot on Wednesday.

However, despite the clamor for new issues, the plain fact of the matter is that they're highly risky investments. Using data from Renaissance Capital, a supplier of IPO research, we looked at the 225 IPOs issued in 1998 for companies with a market cap greater than $50 million (anything less would be uncivilized).

That's a big swing for two stocks out of 225 and does not bode well for the buy and hold investor (coerced or otherwise).

While the open and the offer may feature, on average, a sixteen percent bounce, getting the offer and unloading the open is still a formidable task for the individual investor.






















Sign up for our free eNewsletter Dollar Stretcher Tips.

Your Email:

Ask The Dollar Stretcher

Looking for an answer to a frugal living question? Click here to ask a Dollar Stretcher Stretchpert!





Subscribe to TDS Newsletters

Surviving Tough Times
Dollar Stretcher Parents
Dollar Stretcher Tips
The Dollar Stretcher

(text-based)

Financial Independence
TDS Special Offers
The Computer Lady
Computer Lady Lessons
Healthy Foods




Cambridge Credit



Negotiation Skills

Your money saving idea could win you $100!

Each month one TDS reader will win $100 just for telling us your favorite time or money saving idea. It could be you!
Click here to share your idea.

Recent winners are:
- Michelle from NC
- Matt from CO
- Joan from CT
- Joanne in New York




Money problems?
The Dollar Stretcher can help:

Afraid to lose your job?

Struggling with credit card debt?

Help for your mortgage?

Can't pay your debts?

Need some extra income?

Fighting bad credit?

What you need to know about bankruptcy?

Become money smart?

Trouble repaying student loans?








Copyright 1996 - 2012 "The Dollar Stretcher, Inc." All rights reserved unless specifically noted.

Contact the Dollar Stretcher at:
Dollar Stretcher
PO Box 14160
Bradenton FL 34280
Voice 941-761-7805
Fax 941-761-8301


"The Dollar Stretcher, Inc." does not assume responsibility for advice given. All advice should be weighed against your own abilities and circumstances and applied accordingly. It is up to the reader to determine if advice is safe and suitable for their own situation.











 

Dollar Stretcher Community

TDS Forums Forums TDS Blogs Blogs


Also In This Week's Issue

In The Dollar Stretcher Community

Reader Favorites