{"id":1974181,"date":"2014-04-14T10:24:40","date_gmt":"2014-04-14T04:54:40","guid":{"rendered":"http:\/\/stockviz.biz\/index.php\/?p=1974181"},"modified":"2014-09-09T12:29:37","modified_gmt":"2014-09-09T06:59:37","slug":"ipos-revisited","status":"publish","type":"post","link":"https:\/\/stockviz.biz\/index.php\/2014\/04\/14\/ipos-revisited\/","title":{"rendered":"IPOs Revisited"},"content":{"rendered":"<p><a href=\"http:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2014\/04\/IPO-performance.png\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1974191\" alt=\"IPO performance\" src=\"http:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2014\/04\/IPO-performance.png\" width=\"1359\" height=\"448\" srcset=\"https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2014\/04\/IPO-performance.png 1359w, https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2014\/04\/IPO-performance-300x98.png 300w, https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2014\/04\/IPO-performance-1024x337.png 1024w, https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2014\/04\/IPO-performance-500x164.png 500w, https:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2014\/04\/IPO-performance-900x296.png 900w\" sizes=\"auto, (max-width: 1359px) 100vw, 1359px\" \/><\/a><\/p>\n<p>We had come out with the StockViz <a href=\"http:\/\/stockviz.biz\/2012\/07\/11\/ipos-are-they-worth-it\/\" target=\"_blank\">5-day rule for IPOs<\/a> back in July-2012 which basically stated that <em>&#8220;if it [the stock] doesn&#8217;t pop within the first 5 days, chances are that it never will.&#8221;<\/em> And subsequent performance of IPOs have validated that rule.<\/p>\n<p>Since August-2012, there have been 53 IPOs, of which only 2 have made any real money for investors over the long-term: JUSTDIAL and REPCOHOME. Here&#8217;s how the 5-,10-,20-,50-,100-,200-day average return for IPOs look like, juxtaposed on the NIFTYBEES ETF return:<\/p>\n<p><a href=\"http:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2014\/04\/returns.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1974201\" alt=\"returns\" src=\"http:\/\/portalvhds29z8xdrqhczq.blob.core.windows.net\/wordpress\/2014\/04\/returns.png\" width=\"180\" height=\"148\" \/><\/a><\/p>\n<p>The IPOs that made money were not slam-dunks either. Here&#8217;s a splattering of commentary on Just Dial:<\/p>\n<ul>\n<li>Hindu Business Line: Avoid (<a style=\"font-style: normal\" href=\"http:\/\/www.thehindubusinessline.com\/money-wise\/stock-insight\/just-dial-ipo-avoid\/article4727769.ece\" target=\"_blank\">source<\/a>)<\/li>\n<li>Economic Times: Avoid (<a style=\"font-style: normal\" href=\"http:\/\/articles.economictimes.indiatimes.com\/2013-05-21\/news\/39418708_1_just-dial-ipo-upper-price-band-search-service\" target=\"_blank\">source<\/a>)<\/li>\n<li>Aditya Birla Money: Avoid (<a style=\"font-style: normal\" href=\"http:\/\/articles.economictimes.indiatimes.com\/2013-05-17\/news\/39336704_1_price-band-jdl-business-model\" target=\"_blank\">source<\/a>)<\/li>\n<li>Microsec: Seems unattractive, subscribe for listing gains (<a style=\"font-style: normal\" href=\"http:\/\/articles.economictimes.indiatimes.com\/2013-05-21\/news\/39419067_1_just-dial-price-band-issue-price\" target=\"_blank\">source<\/a>)<\/li>\n<li>HDFC Securities: Avoid (<a style=\"font-style: normal\" href=\"http:\/\/articles.economictimes.indiatimes.com\/2013-05-17\/news\/39336386_1_jdl-hdfc-securities-equity-shares\" target=\"_blank\">source<\/a>)<\/li>\n<li>GEPL Capital: Subscribe (<a style=\"font-style: normal\" href=\"http:\/\/www.moneycontrol.com\/news\/ipo-issues-open\/subscribe-to-just-dial-ipo-says-gepl-capital_871968.html\" target=\"_blank\">source<\/a>)<\/li>\n<li>VS Fernando: Avoid (<a style=\"font-style: normal\" href=\"http:\/\/www.moneycontrol.com\/news\/ipo-swot\/just-dial-ipo-valuation-way-too-demanding-says-vs-fernando_875311.html\" target=\"_blank\">source<\/a>)<\/li>\n<\/ul>\n<p>There simply isn&#8217;t enough information about the company to evaluate whether the stock is a good investment or not at the time of the IPO. However, if you followed the rule, you would have cut your losses and retained the winners.<\/p>\n<p>When it comes to investing in IPOs, remember the StockViz 5-day rule!<\/p>\n<p>[stockquote]JUSTDIAL[\/stockquote] [stockquote]REPCOHOME[\/stockquote]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We had come out with the StockViz 5-day rule for IPOs back in July-2012 which basically stated that &#8220;if it [the stock] doesn&#8217;t pop within the first 5 days, chances are that it never will.&#8221; And subsequent performance of IPOs have validated that rule. Since August-2012, there have been 53 IPOs, of which only 2 &hellip; <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3471,9],"tags":[29],"class_list":["post-1974181","post","type-post","status-publish","format-standard","hentry","category-investing-insight","category-your-money","tag-ipo","entry"],"_links":{"self":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/1974181","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/comments?post=1974181"}],"version-history":[{"count":0,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/posts\/1974181\/revisions"}],"wp:attachment":[{"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/media?parent=1974181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/categories?post=1974181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockviz.biz\/index.php\/wp-json\/wp\/v2\/tags?post=1974181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}