There are a whole lot of you out there hootin' and hollerin' about the end of the quiet period on Monday. But you need a dose of reality.
Now don't get me wrong. I am long this stock and will be for awhile. I like the company, I like the industry.
But I do not believe Monday will see some huge jump on coverage initiation. QP's simply don't have that kind of effect, contrary to popular opinion. Yes, there are some exceptions, but look at the last few months worth of IPO's and you'll see that QP's ending and coverage initiations don't have a monumental impact on the stock. Why?
First, strong buys are not common on initial coverage of recent IPO's. Brokerage houses do not like to come out with strong buys right away because then they cannot upgrade later.
Second, everybody expects the underwriters to come out with buys. That is standard. As such, that "news" is almost completely discounted.
I'm saying all this not to rain on the parade but because I don't want weak handed "longs" to run for the door if the stock does not have a big jump on Monday/Tuesday.
This stock will go higher. But it will do so on fundamentals and the strength of the industry. Not on the biased coverage initiation by the underwriter who has an economic stake in the company.