Stock ?- How does the average Joe get involved in an IPO?

Iceman · Sep 19, 2006

There is a particluar company that is going to be entering the market in the near future and I think their poetential is high.

Have seen and heard about this product alot in the last month and then seen Cramer endorsing it's IPO, a few days ago.

Don't know much about market but do have a Edward Jones broker who has me in mutal funds (boring).

Have always heard about IPO's but thought they were just for the big boys or people in the know. But Cramer made it sounds like you can get in.

I figured if anyone know they would be on here before I call my broker and look like a dumbass.

Thanks

viking611 · Sep 19, 2006

your chances at getting are slim and none. If you do it's cause nobody else is buying them. You need to have an account with the investment bank that is the underwriter of the IPO and be someone that has lots and lots of $$$ to invest...they will be looking out for their large clients and want to stuff their pockets with shares at the initial public offering. You aren't in the target market for an IPO

Iceman · Sep 19, 2006

that is what i thought but after hearing Cramer talk about kind of made it sound simple.

TKE683 · Sep 19, 2006

It all depends, the way google did it, a lot of normal investors could get in, if the financial institutions are controlling it, well you are probably out of luck. Check with your broker and ask him if you could talk to someone who deals with IPO's, always a chance you could get in.
It never hurts to ask, you arent for sure locked out of IPO's.
Do you care to share who it is, I have some friends in the financial field and maybe they could look into it.

Iceman · Sep 19, 2006

Sure. The product is called Heeley's and I have seen this product firsthand all over the place in the past month. I talked to my niece and she said EVERYONE in her school is wearing them.

They are shoes with wheels on the bottom and are like roller skates. I have seen similar things in the past but these are quite different as you can't relly tell unless person lifts foot up. The wheel is built right into the shoe.

After seeing these everywhere, I was watching Mad Money the other night and ironically enough, Jim Cramer comes on and starts talking about them and says they will be the hottest selling thing in the near future and to get in on the IPO.

viking611 · Sep 19, 2006

saw some kid rollin around the airport last time i was there...wanted to hit him over the head with my luggage but then i figured out he was going to wipe out soon enough and split his head open and then his parents will sue the company and that IPO won't be worth squat!!

uppy:

I seriously wanted to smack him around though...rolling circles around me, getting in my way.

jwunderdog · Sep 19, 2006

If you get a piece I would be concerned, it may mean it is not a very hot IPO and will drop as soon as it hits the open market.

HellonWheels · Sep 19, 2006

My nephew has had these for the past couple of years. Not a new product by any means.

Iceman · Sep 19, 2006

The actual company Heely's?

I have seen similar rollerblade shoes around. These particualr ones are everywhere from what I have seen.

With that said the fact that Cramer talked so highly about them just a day after I had seen them 3 times, I figured these must be the new "fad" amongst young kids. Confimed by elementary school niece :missingte

HellonWheels · Sep 19, 2006

Heely's came out in 2000. This is an excert from one of their media releases

Heelys, a division of Dallas-based Heeling Sports Ltd., burst onto the scene in limited distribution in December 2000 and quickly spread to international markets by early 2001. The shoes with a single, removable wheel in the heel retail from $89.99 and are available at sporting goods and sport specialty stores.

Iceman · Sep 19, 2006

OK. I don't know how this works but when IPO comes out I thought the company was still at the beginning stages. Either or it is coming out (IPO) very soon and obviously the company's went to another level in the past few months, from what I have heard and seen.

Not trying to hold the stock. Just wanted to catch the wave of a fad for a little profit.:thumbsup2:

viking611 · Sep 19, 2006

Iceman said:
OK. I don't know how this works but when IPO comes out I thought the company was still at the beginning stages. Either or it is coming out (IPO) very soon and obviously the company's went to another level in the past few months, from what I have heard and seen.

Not trying to hold the stock. Just wanted to catch the wave of a fad for a little profit.:thumbsup2:

getting in on an IPO is slim and none like i pointed out...flipping is even tougher for an avg joe

TKE683 · Sep 19, 2006

Very few IPO's are like google and blast off, in fact the past few years most IPO's have not faired well and i think more have dropped than went up in the early stages. Not a big fan of what those guys on tv are pushing you don't know if they have a vested interest or not.

wolfie_cr · Sep 19, 2006

Iceman said:
OK. I don't know how this works but when IPO comes out I thought the company was still at the beginning stages.

Actually when a company has an IPO is because it is already past the beginning stages normally, its a company that can show potential in the future and is healthy at that point. When the IPO occurs (normally) the original investors get rich (if the IPO is properly executed and if the company has further potential)

You cant just show up with a company today and go public tomorrow.

TTinCO · Sep 19, 2006

I think there may be some bad info floating around here (or at least one hell of a misunderstanding). Anyone can buy an IPO when it hits the market. It seems that what you want to do is purchase PRE IPO, which is not an easy task.

IPO's can be volaile as hell, and it's not at all uncommon for them to tank badly. Even if they do well, there is sooooooo much potential for market manipulation by the level 2 guys, it's not even funny (I won't go as far as saying that they are screwing everyone involved & making a ton doing it....but that's not far off).

Consider it gambling rather than an investment, because that's really what it is.

sean1 · Sep 19, 2006

Iceman -An IPO can occur anytime. A company can be in existence for years before having and IPO (Or may never have one) or can have one the first day it is in existence.For example, I believe Fidelity is still privately owned (No IPO)Microsoft was around a while before having an IPOOpay (A company for paying taxes with a credit card) was started by the guy who started Geocities (Sold to yahoo). I believe he had an IPO on opay like the day he opened the company. He had a big enough name to find underwriters without much product.Basically, unless you are someone with a big name, if you want to start a company, the steps generally are:Find an angel investor - generally $100,000-$1,000,000. Use this capital to secure patents, write business plans, start up expenses, maybe create a model of the product. Angels generally get 10-30% of company.Next find venture capitalists - generally $500,000+. Use this money to hire staff, a board, a good CEO who has brought stuff to market, develop the product, advertise, get it out there. Venture caps usually get 25-50% of company.Eventually have an IPO so your stock, the VC, and angel investor stock in the company has some worth.In some cases, a company will be very profitable and decide that the investors can make more in the long run simply not having and IPO and taking in the profits.There are several ways to get in on an IPO- Have a lot of money so that you have a big account at an investment bank.- Get lucky that a company like google makes it available to the public- Find a company that has a lot of money and has a big account at an investment bank. I have not looked in years, but 6 or 7 years ago, Etrade offered members the option to participate in IPOs. Etrade would pool all the orders and then use their accoutns at the big banks to make it happen and then disperse the shares - of course Etrade charged a nice amount for this.Sean

viking611 · Sep 20, 2006

TTinCO said:
Anyone can buy an IPO when it hits the market. .

Anyone is certainly able to buy...your chances are about 3% on getting a stock at IPO price...you can book that. see my below post for accurate info

Arodd · Sep 20, 2006

with 10K you could make money off IPOs, get in as early as possible (at least as early as typical consumers can buy them) and cap a price that you think the IPO will max at before stagnating/decreasing. Can usually lock in a decent profit if you correctly predict that an IPO open within a certain range and correctly predict it will increase.
Involves alot of watching the prices though...

TKE683 · Sep 20, 2006

How many people do you think bought google, made 50-100% and bailed and missed all the rest of that profit.

heart222 · Sep 20, 2006

besides the lead underwriter bringing the company public there is what is known as the selling group and it may be another 5-10 compies bringing it public. if it is not a hot issue opening an account at one of the other firms may get you a chancefor some shares. ask your jones broker if they are in the deal and can he help you. all he can do is say no. if the company is already public and bringing out a secendary then it is usually priced at the stock price day before so thats easy. if your broker cant help drop me an email at elbokas@aol.com and i will see what i can fin out for you. put heelies in the subjext line so i will know its you and not a scam deal. regards heart222 broker 25 years