Heelys (HLYS) new IPO (Cramer Picked)

[Jordan]

Cramers mention this on his show last nite. New IPO, was up 63% earlier, now it is up 13%.

My be worth a look

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B4C1510FD%2DA299%2D4EF4%2D889C%2 DC0535D9165AF%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo

[robvia]

I think the percentage gains they talk about for new IPOs are a joke.

The IPO was set at 21. It opened at 34, spiked at 37, down to 32, and floated at 35 most of the day before dropping back to 32.

So if you ask me, it's actually down 2 points today. Unless you're a big whale with a broker, there's no way to get that $21 price. Most would have bought it at 35 and then watched it widdle away.

I was watching it at 11am and decided not to buy when I saw it spike to 35 right from the open. The daily chart looks like an EKG from a patient that just died. Blip, beeeeeeeeeeeeeeeeeeeeep.

[ub3rn00ber]

With the gains of other IPOS in the recent months, do you wonder why the price spiked?

[robvia]

Right, Jim mentioned HLYS on the show Friday. He went back to the tape from a few months ago where he recommended it. Now he's telling people that to get in on these deals, you need to contact your broker and ask about getting the stock before the IPO. In other words, you need to "schmooze" your broker to get in on the action.

What's the earnings per share on HLYS?
What should it be trading it at right now?

If it's lower than 32, then the stock will continue down just like NMX did.

The one IPO I bought that has been moving up is SPR, check that one out. Cramer didn't mention it, I found it on my own. I just happened to read about it in an article a few weeks ago and bought 100 shares. I bought 100 more shares yesterday.

[Kevin Wong]

IPOs are commonly known as "It's probably overpriced" to the average investor. With many IPO offerings, a broker will need to be on a list with the company. For the investor, they must get in good with the broker in order to get that set price.

IPOs can be profitable, but I stay away from them. The risk/reward ratio is to high for my comfort.

[pmb1010]

yep - risk / reward...

think back Tim Horton = good

Sealy = bad


its a gamble. I'd rather play momentum. Try to pile on the smart money.
I find those I get in too late. not enough left to make a significant inventment have a decent return.

Or my favorite, out of favor by an analyst's downgrade - stock drops 3-4 points for no apparent reason. It can, and normally does come back up.