- IPO stands
for Initial Public Offering. When a company
wants money for expansion or some other reason it will contact
an investment banker that will "take the company public".
It does this by selling part or all of the company to the public
in the form of stock.
-
- In the last newsletter I said to keep an eye open for the IPO PayPal.
That was one hell of a tip. It's open was delayed until 2/15/2002.
Because the market has been weak, it opened close to its offered
price. This created a great opportunity for trading a well known
IPO. 3 minutes after its open there was a small pull back. Entering
there at about 17.5 would have made a nice 2 point trade. This
IPO really opened at 15.41, but by the time most traders knew
it was open it had screamed upward. Princeton's TradeTutor courses
explain how to know when the first 100 shares of an IPO has traded
as well as how to preference orders, so you can get in at the
beginning. Knowing how to get in early could have turned this
trade into 4 points instead of 2 points.
- Doing a little research you will discover a few important facts about
PayPal. I've read that Ebay, where PayPal is used a lot, has
started their own payment service and that this might hurt PayPal's
future earnings. At the present time PayPal is dominant in it's
industry, but there are some big players becoming competitors.
Another issue that concerns me is that PayPal's net income for
2000 was a minus 169.5 million. That is a big loss. One other
issue that I find strange is that there were 59.8 million post-offering
shares, but only 5.4 million shares were offered. That is a very
small portion of the pie.
-
- In this market I would be looking for PayPal to pull back on
a daily basis to a more reasonable entry point. I'm tempted to
buy now under the premise that the price will rise when the working
public discovers tonight that it is available, but being conservative,
I'll probably wait until a solid technical indicator tells me
to enter a swing trade. When the stock price is driven down I
will be looking for a buy in as PayPal could be acquired.
-
- There are many special factors that enter into trading IPO's.
Princeton's TradeTutor courses teach you about trading IPO's.
Learn the right way the first time, so you don't develop bad
money losing habits. You will learn how to know when the very
first 100 shares are traded and you will be able to act in seconds.
-
 |
- Preventing
just one serious mistake can easily make the TradeTutor worth
more than twice it's price! And save you from serious Emotional
Damage.
|
- We have revised our training
programs to be the latest and greatest and for the first time
ever are making them available to everyone on a set of CD's.
This is the exact same training we offered in our trading room
for $2000. Here is another plus. We are offering a FREE CD that contains the first lesson from each course.
How many times have you taken a course because it sounded so
good only to discover that it was not even close to what they
said it was? Well, that can't happen with the TradeTutor because
you get to experience how great it is as you learn from 4 Free
lessons.
|
 |
-
- We just added
a way you can save $100 if you act now! Click Here
- If you notice an error in our newsletter, we would
appreciate your letting us know with an email
|
Training Programs will make learning
fast and easy!