If you believe that the bank is well managed, then the $10 2nd stage IPO is a good long term investment, but if you believe that HCBK will sell all 562million shares in the offering then buying the current stock at $33 is a better investment.
I;m not trying to be a jerk, but if you are truly new to stocks/investing and have no experience than nothing is a "safe buy." An important part of investing is trying to quantify risk. Is HCBK a safe buy? Compared to what? Look at mutual funds, index funds and exchange traded funds (ETFs). This is likely the best way to go unless you plan to perform a whole lotta due diligence.
thats the worst answer i have ever heard. the guy just wants to know if $10 a share is safe. not whether to invest in mutual funds! YES, its definitely a great insider price. you will probably make 25-60% on your investment. maybe more if you hold long term. but its a great price for a "flip".
munchyman1 said "depending on amount of shares they sell, your book value will be between $8.22 and $9.12. The average thrift is trading at 152% of book value, so your $10.00 stock should be worth 12.49 to 13.86"
munchyman1, how did you calculate this? If the stock will truly open higher than 12, then this deal is a no brainer.
What conditions would cause the stock to open lower than $10?