Well that's a prediction I wouldn't presume to know. And the reason I say that is because if you were an IPO buyer of Microsoft (MSFT) in 1986 -- the chart will show you an UNDERWATER stock for a couple years!! So the reason for my post was more about teaching/questioning as an investor --- ARE YOU WILLING TO SUFFER?? How much?? How LONG? Can you really stand the heat?? You may be rewarded or you may not. Nobody knows. If a person is willing to buy these types of "investments" -- they NEED to know themselves and whether or not they can handle the stress that comes with them. That was my point. Nothing more - nothing less.
We also have to wonder, how much of the decline today is profit-taking by those that got shares at, or just above, the IPO price? I'm not defending the stock, couldn't care less about it, but that would be an explanation that could make today's movement "seem" like more of a buying opportunity than a sign of impending doom.
Edit: Upon further review...it looks like the banks issued more shares. So the decline is likely created by the dilution of the additional shares. Greg's point still holds true though, for whatever fundamental reason, how willing are you to stomach these day-to-day swings?
We also have to wonder, how much of the decline today is profit-taking by those that got shares at, or just above, the IPO price? I'm not defending the stock, couldn't care less about it, but that would be an explanation that could make today's movement "seem" like more of a buying opportunity than a sign of impending doom.
Edit: Upon further review...it looks like the banks issued more shares. So the decline is likely created by the dilution of the additional shares. Greg's point still holds true though, for whatever fundamental reason, how willing are you to stomach these day-to-day swings?
After reading this TWICE -- I still have no idea what you're asking.
I guess the Dow, Nikkei, Nasdaq are all just measurement/averageing devices. My question was/is, How is the "Alibaba" traded? i guess the same goes for Sony, Toyota etc...I've nver really thought about it before.
Who handles the purchase of the actual stock? A bank?, if this is waaaay back in the thread, well, i guess i'll reread...
I've been following the Alibaba Group Holding Ltd IPO and have mixed feelings about it.
I want to see how things play out after the lockup. But, interesting about this specific IPO is that about 1/3 of the pre-shares were not "restricted" for lockup, weather or not this will create a stir... well that will have to be seen.
I've never been a fan of IPO hype, I want to see how things sit once the lockup is over and we see the stock hopefully mellow out. If earnings are going to move forward with what is predicted then investing after the lockup will still provide at least a few "baggers" if you are planning a long term hold on the stocks.
Greg, thoughts on the un-restricted shares of the lockup?
Jason
Last edited by JasonElvisHeard; 09-23-2014 at 02:35 PM.
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