anybody going to play twitter IPO

[gauss]

Three Words - "Green Shoe Option"

Make sure you understand how this works and why you may not want to be long in the stock going into the 30 day point.

Hint Underwriting broker artificially supports the stock price without risk to them during the first 30 days. All upside for the underwriter, but no downside risk.

But only for 30 days. After that point, the market decides the price.

-gauss

 

[47]

Got allocated 100 shares through Schwab at the IPO price. First time Schwab has come through for me on an IPO.

Was tempted to dump it today when it was trading close to 50 but resisted the temptation. I think I will hold on for a while now to see where it goes.

 

[ETFs_Rule]

Cramer was talking about these tech IPO's back when everyone was gung ho about Facebook. Avoid these website IPO's! They always drop in price going out a few months. Only Goldman Sach's makes money by pushing them on unsavy investors who didn't get Cramer's memo.

 

[IlliniProgrammer]

Cramer was talking about these tech IPO's back when everyone was gung ho about Facebook. Avoid these website IPO's! They always drop in price going out a few months. Only Goldman Sach's makes money by pushing them on unsavy investors who didn't get Cramer's memo.

Jim Cramer is usually a good contrarian signal. And when I was at work, we'd have CNBC on in the background and I would break pencils and lose track of my code when he hit his buzzers and do-dads. It got to the point where I had to leave the floor from 6 PM- 7PM. But I agree with him here.

Wait for the lockups to expire. Then buy.

Big tech firms with a lot of buzz seem to do fairly well after the first six months, if Google and Facebook are any indication. But Twitter probably has a bunch of lockup agreements that will expire, people will sell, and the price, all else being equal will come down. At the same time, there won't be the huge flood of retail buyers driving up the price.