warning commsec bullshit ipos dont ever buy, page-11

I think if Commsec IPO's are underperforming it may not be so much the IPO's that are at fault, but the problem is with the subscribers and the way in which the IPO's are marketed. A high proportion of Commsec members are traders so I imagine a lot of subscribers to IPO's from Commsec are not long term holders. As a result there are more sellers than buyers, hence the price falls below the IPO price.

An example is the OIP IPO. The speed with which OIP closed there is no way subscribers through Commsec could have read and analysed the prospectus in detail. This suggests it was mainly traders who subscribed on the basis of the mention of 1 billion barrels of oil in the promotional email from Commsec expecting to be able to sell at a stag profit on listing.

Also, marketing of the IPO plays a part. The promotional emails coming from Commsec focus on the potential positives (see my previous comment about OIP and 1 billion barrels of oil) which again is going to attract the quick buck brigade, whereas if you are going through an advisory firm they will give a more balanced view. I subscribed to PrimeAg through ABN Amro Morgans and my broker insisted on going through the risks associated with investing in PrimeAg and in farming operations generally (despite the fact that I told him I already knew what the risks were and had already discussed two major concerns I had with him) because he is required to do so. The only analysis of the risks you get with Commsec is if you actually go to the trouble to read the prospectus.