This is the second blog I've started up. The first is Tim's Stock Blog. So, why make a second one? A couple reasons. One, blogging is kind of fun. Two, I wanted to make an even more focused blog on one specific aspect of the market that I don't see much coverage about. This hidden area is the IPO market. I would've launched this one sooner, but with the financial crisis we've endured the past couple years, the IPO market pretty much stopped dead. Seriously, there was literally one IPO of note in Q1 2009 (MJN). The floodgates have opened back up a bit during Q2 and here in Q3. We're also seeing a large amount of equity issuance in already-public companies, but that's outside the scope of this blog. We're only looking at IPOs here.
I would normally limit my scope here to stocks that have been public for a year or less, but given the aforementioned shortage of IPOs from late 2008 and early 2009, I'm giving it a bit longer. I've found IPO trading to be very successful in the past and I wanted to create a blog with a bit of a different focus than my other one, which is a more general stock blog.
This is a truly dynamic area of the market. It's risky, but potentially very rewarding. Since these are new stocks, there's no previous price history. You're getting in right at the beginning. So, right out of the gates, it's probably soon at new all-time highs or lows. The goal is to combine a little due diligence on the fundamentals with a little money management via technical analysis and try to make some money.
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