Although IPOs tend to be terrible first-day buys; retail investors seem mesmerized by them.
The interest in Facebook (NASDAQ:FB) was off the charts, and Manchester United’s proposed $100 million IPO is getting a fair bit of media play despite the fact the offering does little to improve the team’s fortune beyond paying down a small amount of debt. It’s a loser with a capital “L,” and yet soccer fans across America will be buying the stock within the first few days of trading.
I’m not a soccer fan, but it got me to thinking about some of the privately owned household names I would like to see go public:
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
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