Just for giggles this morning -- I checked the Year to Date performance of a couple recent IPO's... I've said in the past that I avoid these not because I don't think they're good products or good companies.... but because of the vicious losses they can deliver once they cool off. The HYPE and the market get together and have EVERYBODY wanting to say they are in the name... then the TV cameras go away (they quit talking about them on TV)... and the air goes out.
Sure enough - or true enough - if you're lucky enough to buy at or near the IPO price... and ride them up - and then sell.... oh yeah - you can double your money in a month or two. But.... are you really that good of a trader? My guess is NOT.
GoPro (GPRO) YTD down 19%
Alibaba (BABA) YTD down 25%
Shake Shack YTD up 12% - but it's down 33% this month! OUCH
I'm not saying people shouldn't buy these names... that depends on your stomach - your wallet - your age - your overall financial health - your longer term horizon. I'm just saying WOW.... What a ride.
|