IPO flipping is what I do to feed my family, as insane as that sounds. IPO's have boom and bust cycles so I was attracted to CCA/PZN for it's dividend and growth potential. I obviously can't buy too much FMKT and like on the offer so I take the extra dough and buy income investments.
Buying IPO's on the offering is not as hard as you think, like buying a car.....keep calling sale people till you find the right match, and then open up lots of them.
� VRSN...value Walk through: If we assume initial earnings of $-19,700,000 grow at a rate of 15.47%, and we discount those future earnings at a rate of 20.00%, we arrive at a net present value for the company's next 10 years of earnings of $0. To account for potential earnings beyond the 10th year, we estimate a growth rate of 11.00%, a discount rate of 15.00%, and we arrive at a continuing value of $0. To complete the calculation we add these two figures together, subtract the long-term debt for VRSN ($0), and divide by the outstanding shares (102,510,000) to get a per share intrinsic value of $0.00.
I feel a good bit of the reason PZN sits at this level is because Doc was not straight forward(you should hear what some analysts called it) with occupancy numbers from last fall am into early 1999. All this was buried in Opco. You can't analyze what you can not see, so we all took Doc's word that occupancy was fine. The May CC was the bold truth as told by something analysts understand, numbers. Two days before that meeting the stock was $22 and picking up steam. The creditabilty issue is huge.
But that's history.
As far as Versign, Redhat, Doubleclick, and on and on....this is the area I make my living, flipping them. I have since I left brokerage sales in the mid 80's. Hot IPO's are created by liquidity, not anything else. A few of the bubbles I bought, PC Makers((late 80's,most belly up), Environmental stocks(late 80's,Gov't slush fund gone), Biotech stocks (in the early 90's, a faction produced anything), Beer stocks(90's,competition), Gambling Stocks(mid 90's,competition) and on and on. In the end they must make money and if your on the wrong side of the liquidity going in your bombed. This interent bubble is bigger than anything I've ever imagined, dreamed wished, wanted, hoped and ever read about. I had two 5+ fold IPO's last week. A few 3 fold and a few two fold. IN ONE WEEK. I can't buy much, but I made $30k on 150 of FMKT....and almost as much on VA Linux. one hundred and fifty shares....one HUNDRED( not a lot of stock) and fifty...one day....if you want to buy these things from me in the open market at those prices.THEY ARE ALL YOURS!!!.