Sunday, 16 August 2015

Newbie Question @ 100% IPO gains

Hi Sir,

Eto ako ulit, mangungulit. J currently reading some topics sa blog mo and I have some questions regarding sa some topics specifically sa IPO and dividend play.

IPO Topic

1.  Is it a good idea to hold on an IPO company for so long? Let’s say binili ko si Company A at the initial offer tapos hold ko siya for long-term or another way lang din siya to earn big?

YES, it’s good idea to keep it, “ONLY IF THE COMPANY HAS A POTENTIAL” or Fair Value at the time of IPO is undervalued. A good example is DD from 2 Php IPO price to 12.86 as of today's recess almost 535% gains. The management has a good expansion plans from the time of IPO as well as projected earnings growth and 1 Half earnings of 2015 Net Income up by 54%.

2. Kung mag-exit ako from buying IPO, kailan maganda mag-exit sa isang IPO? After the first week? 2nd week?  

     The answer to this question depends on the IPO stock and your plan, if it is only for the reason that the stock is oversubscribed and you are playing for short term, possible to sell on the 2nd day when stock hits the 2nd ceiling price which will give you more than 100% gains.

3. I recently purchased kasi SBS at gusto ko sana malaman kung kalian maganda mag-exit or mag-hold ako long-term?

Congratulations. I think if you are contented with the gains, you can collect and reinvest the gains in another stock hitting bottom this month of Aughost. Or you can pull out the capital you used and use it as a buying power. The strategy will depends on your plans before subscribing to IPO. I think the CEO mentioned that the properties under SBS was not valued or priced in, again you might do calculations of FV.

Thank you Mr. Newbie for a great question. For Dividend play question, I will answer it on my next post.

To PAM Students at PAM Academy, Congratulations to 100% gains during the SBS IPO. If you want to be a part of growing community, you can sign up for free or premium;

Sincerely yours,

Jonathan Ruiz

P.S. If you are looking for a great app in the stock market, here is the link;

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