I need a break

I need a break!

For a couple years I've been blaming it on lack of sleep and too much pressure from my job, but now I found out the real reason: I'm tired because I'm overworked! The population of this country is 237 million. 104 million are retired. That leaves 133 million to do the work. There are 85 million in school, which leaves 48 million to do the work. Of this there are 29 million employed by the federal government, leaving 19 million to do the work. 2.8 million are in the Armed Forces, which leaves 16.2 million to do the work. Take from the total the 14,800,000 people who work for State and City Governments and that leaves 1.4 million to do the work. At any given time there are 188,000 people in hospitals, leaving1,212,000 to do the work. Now, there are 1,211,998 people in prisons. That leaves just two people to do the work. You and me! And you are sitting at your computer reading jokes...

How To Choose The Right IPO

Over the last year or so, the stock market has been hogging the limelight. Companies have been coming out with Intial Public Offerings (which is when the company first makes its shares available to the public by getting them listed on the stock exchange). Everyone wants to join the party and make money.

Let's say you do get in on an IPO. Here are a few things to look out for.

1. No History
It's hard enough to analyze the stock of an established company. An IPO company is even trickier to analyze since there won't be a lot of historical information. Your main source of data is the red herring, so make sure you examine this document carefully. Look for the usual information, but also pay special attention to the management team and how they plan to use the funds generated from the IPO.

2.The Lockup Period

If you look at the charts following many IPOs, you'll notice that after a few months the stock takes a steep downturn. This is often because of the lockup period.When a company goes public, the underwriters make company officials and employees sign a lockup agreement. Lockup agreements are legally binding contracts between the underwriters and insiders of the company, prohibiting them from selling any shares of stock for a specified period of time. The period can be anything from 3 to 24 months. 90 days is the minimum period stated under Rule 144 (SEC law) but the lockup specified by the underwriters can last much longer. The problem is, when lockups expire all the insiders are permitted to sell their stock. The result is a rush of people trying to sell their stock to realize their profit. This excess supply can put severe downward pressure on the stock price.

3.Avoid the Hype
Since IPOs only happen once for each company, they are often presented as "once in a lifetime" opportunities. Of course, some IPOs soar high and keep soaring. But many end up selling below their offering prices within the year. Don't buy a stock only because it's an IPO - do it because it's a good investment.

4.Qualified Institutional Buyers (QIBs) **

If the issue has been subscribed more in qualified institutional buyers (QIBs) followed and non-institutional section, then the probability of IPO to be a hit increases.

HAPPY BUYING