Friday, June 13, 2008
Steer clear of IPOs for now
I advise my readers not to ballot for IPOs at current market sentiments. It is actually difficult to invest on IPOs by looking at their prospectus. Many have painted beautiful pictures to attract potential investors.
If we were to analyse the IPOs launched last year, some have sinked more than 50%. Example: Z-Obee, China New Town, China Oil Field (down about 40%). Even REITS of "defensive" nature were not spared, like Saizen, down 30%.
The probability of making money from trading IPOs is less than 40%.
If you want to "bet" on IPOs, perhaps Singapore pools will offer better odds!