Simply IPO!

I just love IPO!

IPO stand for Initial Public Offering where a company send invitation for to investors and allocated a small portions of shares for the general public to subscribe! Anyone with a trading account can applies via the ATM or Interent Banking to have a chance to get the placement.

Charges
There will be a $2 application charge for applying. You will also need to pay for the amount of shares you applied upfront. Your applications will go then through a balloting and you will get to know the results a day before the company starts trading on the market! In the event that your application is failed(which is a norm), the money that you pay upfront will be credited back to your bank account.

The general fact is, the chances for you to get your shares by applying through IPO is almost equal to you buying a toto quickpick to strike a 10 million jackpot! So please don't pin too much hopes on getting it through.

After IPO results is out, the next day will be the first official trading day for the company in the market. It usually draw a lot of market interest from the general public and some speculations from the big players as well. Thus, its a chance for people to made some quick gains through contra trades but know do make sure you know your limits and cut loss when you are wrong!

Today there are 2 IPOs first day trading. I only managed to brought in one, RH Energy as it is mentally stress to look after two trades. I brought near the low at 0.740 and reap in some peanuts profit by selling off too early @ 0.765 within 10 mins... Seeing the strong rally, I set to queue in at 0.755 but did not get it the whole morning and the counter fly into the sky hitting a peak of 0.89. If i have waited patiently, I would have made a jackpot out of it... Nevertheless, it made some impact for the recovery in my losses...

Lesson learnt: Need not rush to set a sell price, it may limit the protential profits. Always observe market sentiments! Of course dun to too greedy as well and set a unrealistic sell price which I learnt from YangZhiJiang !

Upcoming IPOs trading dates

China Angel Food Limited - 13/07/07
CMZ Holdings Ltd -16/07/07
China Sports INternational Limited - 19/07/07
Wanxiang International Limited -20/07/07