CLNE
CLNE: bought at 12.55
Monthly archive: May, 2007
Visa IPO?
Mei asks:
Where do you think it’s headed? In this economy it’s hard to predict, but it’s IPO was incredible. It seems like it should rise quite high over the next couple months. I’m not an expert, but I would like to hear from one. Even an amateur would be nice.
I don’t want to wait, I want to get right in there. I appreciate the response, but if you check back and see this juts throw in a guess where you think it’s going.
Where do you think it’s headed? In this economy it’s hard to predict, but it’s IPO was incredible. It seems like it should rise quite high over the next couple months. I’m not an expert, but I would like to hear from one. Even an amateur would be nice.
I don’t want to wait, I want to get right in there. I appreciate the response, but if you check back and see this juts throw in a guess where you think it’s going.
Should I invest in DLF ipo, Considering what happened to another property company’s ipo’s?
Charley asks:
I want to invest in the DLF property firm ipo coming on 11th this month, the ipo will be for price band of 500-550/-. It is a big deal, but considering that what happned to another property firms like Parsvanath and Ansal API etc, they just all crashed to their issue price and not recovered.
I want to invest in the DLF property firm ipo coming on 11th this month, the ipo will be for price band of 500-550/-. It is a big deal, but considering that what happned to another property firms like Parsvanath and Ansal API etc, they just all crashed to their issue price and not recovered.
Should I invest in this ipo or wait for another ipo like ICICI, Spice Telecom or Adani Port?
when is it good to buy an IPO?
Clement asks:
Hi,
Hi,
Is it good to buy an IPO after a couple of days it is released..or is it better to wait for 21 days so that the price of the IPO becomes stable and then buy it.. I heard this 21 days wait period somewhere but I’m not sure in which context …I assume it was related to the IPO.
Few Points About Reliance Power Ipo Investors Should not Overlook
Esmeralda asks:
The Securities & Exchange Board of India (SEBI) has asked Kotak Mahindra Capital Company Ltd, lead manager to the Reliance Power IPO, to provide certain clarifications related the public offer even as concerns have been expressed over corporate governance issues involved in issue of the company’s shares to promoters at par and transfer of Reliance Energy’s power projects to Reliance Power. The Anil Ambani Group had stated recently that SEBI’s clearance for the IPO is awaited.
REL investors say that approval of shareholders was not obtained for transfer of power projects –– core business of the company which is to bring in revenues –– to Reliance Power. This, being a major decision with a significant impact of the company’s future –– should have been placed before the shareholders.
REL did not inform stock exchanges about the transfer of power projects to Reliance Power. Being a listed company, REL should have informed the exchanges about this important decision which has an impact on the future earnings of the company. According to SEBI norms, listed companies have to inform stock exchanges about all decision that have a bearing on their earnings.
Dharampal Sabharwal, a Rajya Sabha member from Punjab, had drawn the attention of finance minister P Chidambaram and SEBI to irregularities reported about the Reliance Power IPO. While the promoter companies have been issued 500 crore shares of the company at Rs.2 per share, the IPO is said to be aiming at a premium of Rs.60 per share from the public. Some investors have also written to SEBI, complaining about irregularities.
Reliance Power had filed draft red herring prospectus with SEBI on October 3. Usually, clearance from the regulator is granted in three weeks and there was expectation that the IPO would get clearance on Tuesday.
While ADAG still awaits clearance for the issue, it is understood that Kotak Mahindra is communicating with SEBI for the clarifications. The Group wants to issue shares at a face value of Rs.2 per share, but the regulator provides permission for such pricing only in case the value of the shares is Rs.500 or more.
The clarifications sought by SEBI are in line with SEBI (Disclosure and Investor Protection) Guidelines of 2000. “If any additional information/clarification is sought by SEBI in relation to the draft offer document from the merchant banker(s), SEBI may issue such observations within 15 days from the date of receipt of satisfactory reply from the merchant banker(s),” say norms framed by the regulator for such clarifications.
The Securities & Exchange Board of India (SEBI) has asked Kotak Mahindra Capital Company Ltd, lead manager to the Reliance Power IPO, to provide certain clarifications related the public offer even as concerns have been expressed over corporate governance issues involved in issue of the company’s shares to promoters at par and transfer of Reliance Energy’s power projects to Reliance Power. The Anil Ambani Group had stated recently that SEBI’s clearance for the IPO is awaited.
REL investors say that approval of shareholders was not obtained for transfer of power projects –– core business of the company which is to bring in revenues –– to Reliance Power. This, being a major decision with a significant impact of the company’s future –– should have been placed before the shareholders.
REL did not inform stock exchanges about the transfer of power projects to Reliance Power. Being a listed company, REL should have informed the exchanges about this important decision which has an impact on the future earnings of the company. According to SEBI norms, listed companies have to inform stock exchanges about all decision that have a bearing on their earnings.
Dharampal Sabharwal, a Rajya Sabha member from Punjab, had drawn the attention of finance minister P Chidambaram and SEBI to irregularities reported about the Reliance Power IPO. While the promoter companies have been issued 500 crore shares of the company at Rs.2 per share, the IPO is said to be aiming at a premium of Rs.60 per share from the public. Some investors have also written to SEBI, complaining about irregularities.
Reliance Power had filed draft red herring prospectus with SEBI on October 3. Usually, clearance from the regulator is granted in three weeks and there was expectation that the IPO would get clearance on Tuesday.
While ADAG still awaits clearance for the issue, it is understood that Kotak Mahindra is communicating with SEBI for the clarifications. The Group wants to issue shares at a face value of Rs.2 per share, but the regulator provides permission for such pricing only in case the value of the shares is Rs.500 or more.
The clarifications sought by SEBI are in line with SEBI (Disclosure and Investor Protection) Guidelines of 2000. “If any additional information/clarification is sought by SEBI in relation to the draft offer document from the merchant banker(s), SEBI may issue such observations within 15 days from the date of receipt of satisfactory reply from the merchant banker(s),” say norms framed by the regulator for such clarifications.
In Value Stock Investing, Quality is Job One
Rema asks:
How much financial bloodshed is necessary before we realize that there is no safe and easy shortcut to investment success? When do we learn that most of our mistakes involve greed, fear, or unrealistic expectations about what we own? Eventually, successful investors begin to allocate assets in a goal directed manner by adopting a realistic Investment Strategy… an ongoing security selection and monitoring process that is guided by realistic expectations, selection rules, and management guidelines. If you are thinking of trying a strategy for a year to see if it works, you’re due for another smack up alongside the head! Viable Investment Strategies transcend cycles, not years, and viable Equity Investment Strategies consider three disciplined activities, the first of which is Selection. Most familiar strategies ignore one of the others.
How should an investor determine what stocks to buy, and when to buy them? Will Rogers summed it up: “Only buy stocks that go up. If they aren’t going to go up, don’t buy them.” Many have misread this tongue-in-cheek observation and joined the “Buy (anything) High” club. I’ve found that the “Buy Value Stocks Low (er)” approach works better. A Google search produces a variety of criteria that help to identify Value Stocks, the standards being low Price to Book Value, low P/E ratios, and other “fundamentals”. But you would be surprised how the definitions can vary, and how few include the word “Quality”. In the late 90’s, it was rumored that a well-known Value Fund Manager was asked why he wasn’t buying dot-coms, IPOs, etc. When he said that they didn’t qualify as Value Stocks, he was told to change his definition… or else.
How do we create a confidence building Stock Selection Universe? Simply operating on blind faith with one of the common definitions may be too simplistic, particularly since many of the numbers originate from the subject companies. Also, some of the figures may be difficult to obtain quickly, and it is essential not to get bogged down in endless research. Here are five filters you can use to come up with a selection universe of higher quality companies, and you can obtain all of the data inexpensively from the same source:
An S & P Rating of B+ or Better. Standard & Poor’s is a major financial data provider to the investment community, and its “Earnings and Dividend Rankings for Common Stocks” combine many fundamental and qualitative factors into a letter ranking that speaks only to the financial viability of the rated companies. Potential market performance (a guessing game anyway) is not a consideration. B+ and above ratings are considered Investment Grade. Anything rated lower adds an element of unnecessary speculation to your portfolio. A staff of thousands does your research for you.
A History of Profitability. Although it should seem obvious, buying stock in a company that has a history of profitable operations is less risky than acquiring shares in an unproven, or start-up entity. Profitable operations adapt more readily to changes in markets, economies, and business growth opportunities. They are more likely to produce profit opportunities for you quickly.
A History of Regular Dividend Payments. The payment of regular dividends, and periodic increases in rate paid, are sure signs of economic viability. Companies will go to great lengths, and endure great hardships, before electing either to cut or to omit a dividend. There is no need to focus on the size of the dividend itself; Equities should not be purchased as income producers. A further benefit of using dividend payment as one of your selection criteria is the clear indication of financial stress that a cut communicates.
A Reasonable Price Range. You will find that most Investment Grade stocks are priced above $10 per share and that only a few trade at levels above $100. If you have a seven-figure portfolio, price may not matter from a diversification standpoint, but in smaller portfolios, a round lot of a $50 stock may be too much to risk in one position. An unusually high price may be caused by an unusually high degree of sector or company specific speculation while an inordinately low price may be a good warning signal. With no real structural size limitations, I feel comfortable with a range between $10 and $90 per share… but I would avoid most issues even at that level.
A NYSE Listed Security. I’m not sure that the listing requirements for the NYSE are still more restrictive than elsewhere, but it is helpful to be able to focus on just one set of statistics. Most of the information you need regularly is reported by Exchange (Market Stats, Issue Breadth, and New Highs vs. New Lows).
Your Selection Universe will become the backbone of your Equity Investment Program, so there is no room for creative adjustments to the rules and guidelines you’ve established… no matter how strongly you feel about recent news or rumor. Now you can focus on operating procedures that will help you diversify properly by position size, industry, etc., and on guidelines that will help you identify which stocks should be watched closely for purchase when the price is right. Keeping in mind that you want to sell the Equity Position at a target profit ASAP, you’ll want to establish appropriate buying (and selling) rules. For example, I never consider buying a stock until it has fallen at least 20% from its highest level of the past 52 weeks, so I include those that are close or at this price level on a “Daily Watch List”. Then, I select those that I would be willing to add to equity portfolios if they fall a bit more during the trading day. My actual “Buy List” changes every day in both symbol and limit price.
You will need to apply consistent and disciplined judgment to your final selection process, but you can be confidant that you are choosing from a select group of higher quality, well-established companies, with a proven track record of profitability and owner awareness. Additionally, as these companies gyrate above and below your purchase price (as they absolutely will), you can be more confident that it is merely the nature of the stock market and not an imminent financial disaster… and that should help you sleep nights.
By the way, never say no to a profit when the upward movement equals 10%, and you’ll be able to do it again, and again, and again.
How much financial bloodshed is necessary before we realize that there is no safe and easy shortcut to investment success? When do we learn that most of our mistakes involve greed, fear, or unrealistic expectations about what we own? Eventually, successful investors begin to allocate assets in a goal directed manner by adopting a realistic Investment Strategy… an ongoing security selection and monitoring process that is guided by realistic expectations, selection rules, and management guidelines. If you are thinking of trying a strategy for a year to see if it works, you’re due for another smack up alongside the head! Viable Investment Strategies transcend cycles, not years, and viable Equity Investment Strategies consider three disciplined activities, the first of which is Selection. Most familiar strategies ignore one of the others.
How should an investor determine what stocks to buy, and when to buy them? Will Rogers summed it up: “Only buy stocks that go up. If they aren’t going to go up, don’t buy them.” Many have misread this tongue-in-cheek observation and joined the “Buy (anything) High” club. I’ve found that the “Buy Value Stocks Low (er)” approach works better. A Google search produces a variety of criteria that help to identify Value Stocks, the standards being low Price to Book Value, low P/E ratios, and other “fundamentals”. But you would be surprised how the definitions can vary, and how few include the word “Quality”. In the late 90’s, it was rumored that a well-known Value Fund Manager was asked why he wasn’t buying dot-coms, IPOs, etc. When he said that they didn’t qualify as Value Stocks, he was told to change his definition… or else.
How do we create a confidence building Stock Selection Universe? Simply operating on blind faith with one of the common definitions may be too simplistic, particularly since many of the numbers originate from the subject companies. Also, some of the figures may be difficult to obtain quickly, and it is essential not to get bogged down in endless research. Here are five filters you can use to come up with a selection universe of higher quality companies, and you can obtain all of the data inexpensively from the same source:
An S & P Rating of B+ or Better. Standard & Poor’s is a major financial data provider to the investment community, and its “Earnings and Dividend Rankings for Common Stocks” combine many fundamental and qualitative factors into a letter ranking that speaks only to the financial viability of the rated companies. Potential market performance (a guessing game anyway) is not a consideration. B+ and above ratings are considered Investment Grade. Anything rated lower adds an element of unnecessary speculation to your portfolio. A staff of thousands does your research for you.
A History of Profitability. Although it should seem obvious, buying stock in a company that has a history of profitable operations is less risky than acquiring shares in an unproven, or start-up entity. Profitable operations adapt more readily to changes in markets, economies, and business growth opportunities. They are more likely to produce profit opportunities for you quickly.
A History of Regular Dividend Payments. The payment of regular dividends, and periodic increases in rate paid, are sure signs of economic viability. Companies will go to great lengths, and endure great hardships, before electing either to cut or to omit a dividend. There is no need to focus on the size of the dividend itself; Equities should not be purchased as income producers. A further benefit of using dividend payment as one of your selection criteria is the clear indication of financial stress that a cut communicates.
A Reasonable Price Range. You will find that most Investment Grade stocks are priced above $10 per share and that only a few trade at levels above $100. If you have a seven-figure portfolio, price may not matter from a diversification standpoint, but in smaller portfolios, a round lot of a $50 stock may be too much to risk in one position. An unusually high price may be caused by an unusually high degree of sector or company specific speculation while an inordinately low price may be a good warning signal. With no real structural size limitations, I feel comfortable with a range between $10 and $90 per share… but I would avoid most issues even at that level.
A NYSE Listed Security. I’m not sure that the listing requirements for the NYSE are still more restrictive than elsewhere, but it is helpful to be able to focus on just one set of statistics. Most of the information you need regularly is reported by Exchange (Market Stats, Issue Breadth, and New Highs vs. New Lows).
Your Selection Universe will become the backbone of your Equity Investment Program, so there is no room for creative adjustments to the rules and guidelines you’ve established… no matter how strongly you feel about recent news or rumor. Now you can focus on operating procedures that will help you diversify properly by position size, industry, etc., and on guidelines that will help you identify which stocks should be watched closely for purchase when the price is right. Keeping in mind that you want to sell the Equity Position at a target profit ASAP, you’ll want to establish appropriate buying (and selling) rules. For example, I never consider buying a stock until it has fallen at least 20% from its highest level of the past 52 weeks, so I include those that are close or at this price level on a “Daily Watch List”. Then, I select those that I would be willing to add to equity portfolios if they fall a bit more during the trading day. My actual “Buy List” changes every day in both symbol and limit price.
You will need to apply consistent and disciplined judgment to your final selection process, but you can be confidant that you are choosing from a select group of higher quality, well-established companies, with a proven track record of profitability and owner awareness. Additionally, as these companies gyrate above and below your purchase price (as they absolutely will), you can be more confident that it is merely the nature of the stock market and not an imminent financial disaster… and that should help you sleep nights.
By the way, never say no to a profit when the upward movement equals 10%, and you’ll be able to do it again, and again, and again.
buying ipo through tdamertrade?
Evon asks:
I read many answers to these kind of questions but still not sure.
For example there is IPO that suppose to be sold around $20.
Tdameritrade say i can put day/limit order in the day before the IPO goes on market, or purchase them when they go on secondary market.
I read many answers to these kind of questions but still not sure.
For example there is IPO that suppose to be sold around $20.
Tdameritrade say i can put day/limit order in the day before the IPO goes on market, or purchase them when they go on secondary market.
Do I just call a broker up a put a day/limit order at $20? or do I have to put it higher bid?
Tdameritrade say I can trade online when the stock goes on secondary market. is that same thing as launching date of IPO?
Thanks~!
