InvestorsHub Logo

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Live Updating
profile icon
$hylo Free
08/09/13 5:37 PM
profile icon
antman Free
08/07/13 8:25 AM
profile icon
$hylo Free
08/05/13 7:02 PM
profile icon
$hylo Free
08/05/13 4:32 PM
profile icon
$hylo Free
08/05/13 4:29 PM
profile icon
$hylo Free
07/31/13 11:32 AM
profile icon
$hylo Free
07/30/13 9:51 PM
profile icon
$hylo Free
07/30/13 12:12 PM
profile icon
$hylo Free
07/29/13 4:27 PM
profile icon
TheFinalCD PremiumMember
07/28/13 6:29 PM
profile icon
$hylo Free
07/28/13 4:47 PM
profile icon
$hylo Free
07/24/13 12:24 PM
profile icon
$hylo Free
07/22/13 9:31 PM
profile icon
$hylo Free
07/22/13 9:20 PM
profile icon
$hylo Free
07/21/13 11:13 PM
profile icon
$hylo Free
07/21/13 11:05 PM
profile icon
$hylo Free
07/21/13 9:59 PM
profile icon
$hylo Free
07/21/13 9:44 PM

Earnings, IPO's & Trending Stocks Station RSS Feed

Followers
1
Posters
3
Posts (Today)
0
Posts (Total)
21
Created
07/21/13
Type
Premium
Moderator $hylo
Assistants
Welcome to the Earnings, IPO's & Trending Stocks Station. This board is focused on trading opportunities on Pre-Earnings, IPO's and notable current high trending stocks.

What is an IPO?

An initial public offering, or IPO, is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company has never issued equity to the public, it's known as an IPO.

The Basics of IPO's:

*An initial public offering (IPO) is the first sale of stock by a company to the public.
*Broadly speaking, companies are either private or public. Going public means a company is switching from private ownership to public ownership.
*Going public raises cash and provides many benefits for a company.
*The dotcom boom lowered the bar for companies to do an IPO. Many startups went public without any profits and little more than a business plan.
*Getting in on a hot IPO is very difficult, if not impossible.
*The process of underwriting involves raising money from investors by issuing new securities.
*Companies hire investment banks to underwrite an IPO.
*The road to an IPO consists mainly of putting together the formal documents for the Securities and Exchange Commission (SEC) and selling the issue to institutional clients.
*The only way for you to get shares in an IPO is to have a frequently traded account with one of the investment banks in the underwriting syndicate.
*An IPO company is difficult to analyze because there isn't a lot of historical info.
*Lock-up periods prevent insiders from selling their shares for a certain period of time. The end of the lockup period can put strong downward pressure on a stock.
*Flipping may get you blacklisted from future offerings.
*Road shows and red herrings are marketing events meant to get as much attention as possible. Don't get sucked in by the hype.
*A tracking stock is created when a company spins off one of its divisions into a separate entity through an IPO.
*Don't consider tracking stocks to be the same as a normal IPO, as you are essentially a second-class shareholder.
http://www.investopedia.com/university/ipo/ipo4.asp

Every day new companies are formed. The more successful ones are able to take their companies public. While only a few IPOs will become household names like Intel, Google or Microsoft, some relatively unknown newly public companies will see startling share appreciation in their early trading days, for example:

Apollo Group (1994 IPO, education) – rose 1122% in 74 weeks
CB Richard Ellis (2004, commercial real estate) – rose 541% in 156 weeks
Rackspace Hosting (2008, online hosting services) – rose 488% in 46 weeks
Intercontinental Exchange (2005, futures & OTC exchange) – rose 341% in 110 weeks

http://www.renaissancecapital.com/IPOPlus/WhyIPOs.aspx#

What is Quarterly Earnings Report?

A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net income, earnings per share, earnings from continuing operations and net sales. These reports follow the end of each quarter. Most companies file in January, April, July and October.
http://www.investopedia.com/terms/e/earningsreport.asp

Pre-Earnings trading opportunity:

"Buy the rumor and sell the news." The strategy is to buy the stock early when the "good news" rumor is starting to spread. Then you sell the stock immediately as soon as the rumor becomes a fact.

The Earnings Run Strategy

Look for a reputable company that has a good track record of announcing positive earnings report surprises. Check the market sentiment if it is expected to beat analyst's earnings estimates in their next earnings report.

Two to three weeks prior to the earnings announcement date, check the stock's chart to see if the stock is trending higher or bouncing from a recent dip or pullback in price.

Some traders sell their shares just prior to the earnings report announcement, which can cause the price to drop before the earnings calendar announcement date. Because of this risk you may want to sell most or all of your shares just before the earnings calendar date.

On the plus side, the payoff for holding on to a few shares could be also profitable. On the downside, the price may drop sharply lower after the earnings report is released regardless of how good the earnings are. Always lock in profits early.

Good Luck to ALL!!!


DISCLAIMER:

This board has been prepared solely for information purposes, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. The information presented in this site is for general information purposes only. Although every attempt has been made to assure accuracy, we assume no responsibility for errors or omissions. Examples are provided for illustrative purposes only and should not be construed as investment advice or strategy. 


Board Info
Posts Today
0
Posts (Total)
21
Posters
3
Moderator
Assistants
New Post