IPO News
Once again, IPO listings failed to follow through. The Canadian based company Smart Technologies (NASDAQ: SMT) was priced at $17 per share, which was at the midpoint of it’s range. The interactive whiteboard maker also happened to be the largest NASDAQ IPO of the year, and was anticipated by some to possibly to trade at a 2 dollar premium. Well, buyers were disappointed again. Smart Technologies was the latest IPO to trade at a smaller premium, and as of the entry, is trading below issue price. What does this tell you when a company that expecting 680 million in revenue and was seeded by Intel trades lower ? It tells us that this summer hasn’t been great for speculation. Imagine how a company with Smart Technologies‘ story would have traded back in the late 1990′s.
As we have said in prior blogs, the speculative money has been on the sidelines. These summer doldrums have led to very few hot penny stock success stories. While most expect OTCBB and NYSE volume to lighten up in the summer, the concern is when that volume comes back. So be selective with your speculative microcap selections. Watch for quality IPO‘s that are trading at discounts to their issue prices. Look at large cap stocks that are trading at low P/E multiples and form you penny stocks lists. The is value in every market and eventually sentiment will turn. Just don’t run out of bullets before it does.
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