Twitter IPO launch this week - Thoughts?

[Tom.V]

Now, I know very little about investing in stocks, and much less about IPO's and how the market actually comes to a proper valuation. I did want to ask you guys with experience, what are your thoughts on this?

Twitter has said it will sell 70 million shares for between $17 and $20, valuing the online messaging company as much as $11 billion, below the $15 billion that some analysts had been expecting.

http://www.reuters.com/article/2013/11/03/usa-stocks-weekahead-idUSL1N0IM22U20131103

 

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[SeanKelly]

Relate this to FB if anything... it will most-likely drop and then stabilize/rise. it dropped down to about $25 and i didn't buy it. Now it sits at around $50 I believe. Could've doubled my money.

 

[MattCour]

I don't think you can compare this to FB. They increased the price and the amount of shares dramatically at the last minute. I also don't think the underwriters want another shit show on their hands.

 

[Guest3722A]

Now, I know very little about investing in stocks, and much less about IPO's and how the market actually comes to a proper valuation. I did want to ask you guys with experience, what are your thoughts on this?

As far as? One main thing to keep in mind in volatile markets is there are computer programs designed to create fear and greed in the herd. This is done because the only way for big money to make anything that looks like money, would be to develop a mass of emotion from the small guys so that the computer can unload on, or buy from. From my experience, IPOs aren't typical. Some are like a dead horse and others trade like they're in the the tech bubble of the late 90s. No rhyme, no reason. The herd wants to be involved and react right here right now. The bot exploits this and feeds on it.

You mentioned the word "invest" but are you actually more interested in trading? If trading, and you have less than $25k to work with, you may want to look into things other than stocks. I personally really like trading currency futures because they're easier to develop systems around without exterior issues that the sec restrains the little guy with.

 

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[Tom.V]

You mentioned the word "invest" but are you actually more interested in trading? If trading, and you have less than $25k to work with, you may want to look into things other than stocks. I personally really like trading currency futures because they're easier to develop systems around without exterior issues that the sec restrains the little guy with.

Just simply shopping for opinions. I am not by any means thinking about trading or investing in such a volatile market right now.

 

[MattCour]

I'm not an expert but I am in the Fin industry right now and watch IPOs closely. 70-75% of IPO's have traded higher this year so far. Goldman Sachs underwritten IPOs have done even better. GS is a lead underwriter for Twitter. Draw your own conclusions from that. Check out www.iposcoop.com for some historical data.

 

[Guest3722A]

Just simply shopping for opinions. I am not by any means thinking about trading or investing in such a volatile market right now.

Gotcha. Cool. Are you interested in learning about trading, or just more interested in the conversation? I ask because I have some recommendations but I'm not going to put it out there if the intention of this thread isn't in that direction.

 

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