brewer12345 said:Yeah, I never lucked out on the mutual bank conversion thing. I just invested in a start-up bank because some family friends were on the board. When they came around later to do a secondary offfering, I joined in then too.
FinanceDude said:Those kind oof small deals usually work out well over time, but probbaly not going to be the next Microsoft..........
brewer12345 said:Nah, its more like:
Step 1. Buy stock at book value
Step 2. Grow Book value per share by 100%
Step 3. Sell out to a larger bank at 3X newly-enlarged book value.
The only real question is how long it will take.
FinanceDude said:Sounds like the playbook for a number of banks 25 years ago...........
Some of those pensions out there for those folks that ran those small banks..........WOW!!!
kcowan said:I have been in 2 IPOs:
MDA at $14 now trading at $41 (Got out at $27)
THI at $27 now trading at $34 still holding.
The good thing about them is that you pay no brokerage fees (the company picks up all the costs) on purchase (but you do on sale). I passed on Vonage fortunately because I thought they were way overpriced for the risks.
I always stick with established companies with proven cashflows and growth records.
Fidelity offers IPOs to hyperactive frequent traders but expects you to hang on instead of flipping. I think they work with Lehman to join in on their IPOs. My experience was running behind the market averages.DanTien said:I've never gotten in on an Initial Public Offering.
Have any of you been so lucky?