Wednesday, October 14, 2009

Jason Marine IPO

I seldom blog about IPO as I have never made money from it. Usually company owners who want to sell their business will weave a compelling story to entice people to invest. If I own a company that is really profitable, I would need an offer that I can't resist before I sell it. I will never sell it at fair value. Hence, I never believe in get-rich talks because if I find a gold mine, I will not tell anyone about it until it is empty.

However, the IPO market can rarely be predicted using fundamental analysis. Based on my observations on current market sentiments, the IPO launches for the first day are largely positive.

Considering the outlook for marine sector is looking up, Jason Marine may have a good run up on its first trading day.

As my faithful readers will know, I never have any luck making money from IPO. One of my major mistakes in investing IPOs is holding them for too long without any cut loss strategy in place. Hence for Jason Marine IPO, I will sell it on its debut trading day, be it at a loss or profit. Since it only costs $0.21, 10 lots will cost a mere $2101 including $1 admin fee if you subscribe over ATM.

However, there are only 500k shares for public up for grab, 15.5m shares have already been placed to institutions. Chances of being allocated the IPO are rather low. Personally, I feel that there is a good chance to profit from the IPO from the first day, though this view is made purely without any fundamental analysis.

Post dated: Jason Marine soared on the first day of IPO to 40 cents. Currently it is last traded at 41.5 cents. That is a whopping 98% return!!

1 comment:

laurus said...

How do I get started?