255. aRYANrAJ| Link| Bookmark|
September 24, 2010 7:23:30 PM
Top Contributor (600+ Posts, 100+ Likes)
249. Anonymous
Very good question and good thought. If you've seen my post answered to boarder to lost in mind, I suggested him shares that can be kept as investments and not just for risking for quick bucks.
Honestly everyone think and decide, what they like to see walking on a road? A good looking girl or some random man (no intension of gender biasness or harming women, just an example)? why in Mumbai people visit Nariman Point and not Dharavi slums? Cos of mentality. We like those things which look pretty not knowing the facts that looks can be deceptive.
People visit this site due to lack of information with belief someone will advice them and instead of making money himself he/she will let them earn more and big. They forget that in a up going market every tom dick and electrosteel sells. Than they curse themselve, luck and even guys who advice them.
Your question reminds me of Warren Buffet quote "I buy on the assumption that they could close the market the next day and not reopen it for five years". But people looking for some random id for tips and gyans wants to double the money in 15 days.
You said it rightly, who will buy. Lets assume electrosteel. Since subscription are so high people will come to sell will be more than expected by you or me. Lets say 20000 people sit on terminal that morning each having 600 shares (least expected allotment) there will be 1,20,00,000 shares on sell that too at steap price of 10-11. And if QIBs don't buy than what? It's not just 1 IPO where there will be lacs of people sitting to sell, there are almost dozen hitting market during a week time.
I myself bidded on Orient and Ramky and will apply for Recpro and Ashoka whereas ranom tip givers will advice aam janta to buy Sea TV and BedMutha.
And just for everyones knowledge, 20 out of 41 IPO this year are running into loss. One can check Performance Tracker section of chittorgarh. Those shares which were meant for long term horizon are still holding on and those which were tipped by some friendly bird, God knows what will happen to them.
Lastly, everyone ask yourself, will you buy any of these IPOs on listing?
I had by an oversight posted this under the Orient Green Power heading. There were a couple of responses from well read and informed seniors.
I am repeating the same message here as this heading seems to be attracting more traffic. Seniors like Sj,Ravi,sreedhar,saharanpuri,GEM etc are particularly requested to give their valuable thoughts and inputs on this.
Thanks and Regards
Dear Boarders,
I am having a fundamental doubt.Please enlighten me.
Now there is a bunching of IPOs.People are finding liquidity a problem to apply as much as possible in as many IPOs that they want.
After 15 days all these IPOs will again que up for listing. There will be a bunch of new listings as with opening of IPOs right now.
Most of the allottees(a guess figure of 90%) will want to sell on the first day of listing,pocket huge profit and celebrate Dussera/Diwali. Hardly a few are talking of holding them for medium/long term or even 3 to 6 months.
Now who is going to buy all these new listed companies at a premium to offer price,in a bunch in the October first fortnight. Also remember that the mother of all IPOs, COAL INDIA will hit the board which is bound to suck liquidity in the market.Some selling of existing holdings may be resorted to become liquid to apply for CIL multi mega Dabaang issue.
In these circumstances is it OK to think that everything will be hunky dory when listings happen?? Are we right in agressively bidding for all the IPOs that have come in a bunch now. The entire IPO investor community is gung ho on listing gains. When everyone is thinking alike, markets will behave differently. The markets have also been on an upswing for some time and due for a correction, which may be ripe when bunch listings happen in the next 15 to 20 days.
Since I am new to this and have not seen such bunchings yet, what do our seniors who have spent much longer time in the market feel??
Can all of us apply now, smugly sit back and collect listing gains in 15 days?A fairy tale ending or will there be a different script written elsewhere on which we have no control.
ELDERS PLEASE TAKE A BREATHER FROM GMP/OVERSUBSCRIPTIONS/AHMEDABAD OPERATOR ETC AND ENLIGHTEN ME.