there is a lesson for flippers in BKG today and CRW yesterday.very easy to learn. both these companies top 20 holds almost 82%(crw) and 89%(bkg) respectively. so hardly many free shares to be traded. what we call an IPO Open Day tree shake, was done yesterday in CRW and today in BKG. look at the close to 400K shares changed hands after market close at $2.76 nearly in BKG even though in the auction it closed only at $2.72 It shows supply is drying up and instos have to pay up to get the remaining shares.CRW went up 22c in trading today. with nearly 3.5 mil shares traded in bkg today where do you think the supply on sell side will come from, if the top 20 ( the likes of Ellerston Capital ) holds nearly 89%. it is not rocket science is it. watch these 2 shares do extremely well in the next few days of trading. hope flippers will learn from this experience.
when it is hard to get an allocation in tight ipo's like these 2, it's almost insane to dump at any profit,( like punters who sold at $1.58 today) when you can get much bigger profits just by waiting few days, when sell side dries up! i thought i better put this here so newbies can learn a bit and not to panic, in tightly held ipo's, if they see price drop a bit. Of course not all ipo's are the same. A lot of crap around. I am talking about hard to get allocations ipo's.
tomorrow DOC is listing. next week AKO is listing very hard to get these 2. so should you dump on open or if you see price going down a bit due to the tree shake arranged by instos / or hang in there and try to get maximum profit for your hard earned allocations.it's your call. another example is Akora which I mentioned before. iron ore is flying after Vale in Brazil flagged supply issues. FMG and RIO are flying like there is no tomorrow. AKO has 100mil + tones existing resource and has been drilling since Oct. Drill results are due anyday now.so in a bloody hot iron ore market, with a known very decent resource and drill results due anyday ( can you imagine if they release drill results at open) and hard to get allocations in Akora ipo, and most importantly with just under $10mil EV for AKO, should you sell at open or see what happens and try to extract maximum result in your potential profits. I hope this experience yesterday and today is helpful to you guys. remember I am only talking about hot IPO's with hot prospects and tight registers. I used to flip myself but learned the hard way by missing out on huge profits. we are in a hot market and I hope my own experiences can help someone too. investing is an ongoing learning experience till you die!
