HDTenEightyP/NetNews huggingface dataset:
From: watanabe@cs.uiuc.edu (Larry Watanabe)
Subject: Re: Buying New Stocks On The Day They Go Public
Organization: University of Illinois, Dept. of Comp. Sci., Urbana, IL
Date: Fri, 11 Dec 1992 19:26:39 GMT

georgec@eng.umd.edu (George B. Clark) writes:


>Yesterday, I heard on the radio that a restaurant whose stock was made
>public at an offering price of $13 had doubled by the end of the day.

>I suspect this behavior is true of many new issues. Their price runs up
>the first day or two simply because they are brand new, which attracts
>lots of attention.

>If an investor makes a habit of buying these stocks the day they 
>go public, and then selling them the day after they go public,
>he or she might make lots of money.

>Are there newsletters and people whose investment strategy is focused
>on newly issued stocks and mutual funds, i.e. the buying and selling of
>them during the first week they go public?

There is a good, but old paper called "Investor Experience with
New Stock Issues", Frank K. Reilly & Kenneth Hatfield,
Financial Analysts Journal, Sept-Oct, 1969, pp 73-80.

There were trying to determine if there was a basis for the 
"new issue fever" that occurred then, and in 1961-62,
and seems to be occurring now.

Their study did not show a significant difference for the
NUMBER of new issues that rose, as opposed to falling,
but did show a significant difference for the AMOUNT that
they increased as opposead to decreased.

In other words, people made relatively large gains at
the risk of relatively small losses.

After a month, the average new issue had gained (averaging
losses and gains) 8.7% as opposed to .9% for OTCand .5% for
DJIA.

After about a year, the average new issue had gained 44%
as opposed to about 23% for OTC and 7% for DJIA.

He did some experiments, and it turns out the best decision
rule is to hang onto the IPO's that outperform the market
at the end of the first month.

The authors also give a number of qualitative reasons for
the success in investing in IPOs. There are a large
number of reasons why the underwriters have a downward
bias in pricing them (ie. it is to their advantage to 
underprice them) and, even if the new issue isn't 
successful, the underwriters will support them for a while.

-Larry Watanabe watanabe@cs.uiuc.edu

Newsgroups: misc.invest
From: andrew.delic@rose.com (andrew delic)
Subject: book on stocks
Organization: Rose Media Inc, Toronto, Ontario.
Distribution: misc
Date: Mon, 14 Dec 1992 22:28:29 GMT
X-Gated-By: Usenet <==> RoseMail Gateway (v1.70)


Date Entered: 12-14-92 17:25
S(>What books do people recommend for step-or-two-above-novice investors
S(>in the area of stocks, bonds (or investing in general), as well as
S(>how to take economic/social data/situations into consideration when
S(>choosing investments?  (If you want to suggest magazines, feel free.)

Best book I read so far..    actually,   only  book  I read so far (on the
subject that is..) is called MarketWise by Victoria something..   sorry, I
don't have the book on me right now.

It's extremely informative with 'recommended strategies' sprinkled through
the book - easy to read.

Need more info?   Gimme a shout,  and I'll get you the ISBN when I get  it
back. 

Andrew.
andrew.delic@rose.com
---
   DeLuxe /386 1.25 #12173   C.E.O. - In charge of Diddly Squat.
   RM 2.00 : RoseNet<=>Usenet Gateway : Rose Media 416-733-2285
Newsgroups: misc.invest
Subject: Re: IBM Breakup value?
From: lcornel@eis.calstate.edu (Louis Cornelio)
Date: Fri, 18 Dec 1992 23:57:40 GMT
Organization: Calif State Univ/Electronic Information Services

I was wondering myself just what bottom price we could expect for IBM. I
suppose a the inevitable dividend cut will further lower the price, but at
what point is it perhaps a bargain? (assuming a company losing BILLIONS
--- really? ---) can ever be said to be a bargain. Still...

Newsgroups: misc.invest
From: watanabe@cs.uiuc.edu (Larry Watanabe)
Subject: Re: Where to turn when stock funds come down
Organization: University of Illinois, Dept. of Comp. Sci., Urbana, IL
Date: Sat, 19 Dec 1992 10:12:26 GMT

acheng@ncsa.uiuc.edu (Albert Cheng) writes:

>In article <1992Dec18.225427.28452@gumby.dsd.trw.com> suhre@meltami.dsd.trw.com (Maurice E. Suhre) writes:
>>This is so easy I almost hate to respond :-)
>>
>>Obviously, you should go into the money market, preserve your capital,
>>and wait for a good buying opportunity.  This is called market timing in
>>the vernacular.  A lot of people claim it can't work.  But if your sense
>>is correct :-), then money market is appropriate.  

>I must have asked a dumb question.  What I tried to say is, say comes
>next march, Market hits 3500 and I conclude "that is it, Bear all the
>way for the next 18 months."  Should I immediately move my stock funds
>into bond funds and hold them for 18 months?  Is life that simple
>that stocks go down, bonds go up?

Not necessarily. Bonds often go up with stocks; as a company
gets stronger, both the stock price, and the bond price, will
go up. This is because the chance of defaulting will go down.

If the reason that stocks are going down is because of a
recession, then it would be a bad idea to invest in bonds.
During a recession, many companies might go bankrupt, so
the bonds would become worthless.

Bonds appreciate when the interest rate is falling. That is
why the last two years have been great for bonds. It also
hasn't been bad for stock, as well. When the interest
rate drops, people often look at stock as an alternative
investment. So, falling interest rates can make both
stocks and bonds go up.

If you were afraid of a real monetary crisis, i.e.
economic collapse as well as a stock market crash,
then treasuries would probably be safest.

-Larry Watanabe watanabe@cs.uiuc.edu
Newsgroups: misc.invest
From: alice@snowmass.austin.ibm.com (Alice R. Chen)
Subject: wash sale rules - a tax question
Date: Sat, 12 Dec 1992 21:00:43 GMT
Organization: IBM, Austin

       I plan on selling all of my current employee purchase plan stock holding
       by year end.  
       I am still on the purchase plan, so semi-monthly more shares
       are purchased.

       How does that effect my ability to take the captial lose for 1992?
       Should I stop my employee purchase plan for a while so I can
       take the lose?
  
       I was reading some other article in this news group, it seems 
       to indicate that the 30 days wash sale rule apply to either
       side of day-of-sale?(both before and after)
    

-- 
______________________________________________________________Alice R. Chen
_____________________________________________Graphics Subsystem Development
_________________________________________IBM Advanced Workstations Division
_______________________________________________________alice@austin.ibm.com
Newsgroups: misc.invest
From: pvonk@scott.skidmore.edu (Pierre VonKaenel)
Subject: Re: Why is Borland downgraded?
Organization: Skidmore College, Saratoga Springs NY, 12866
Date: Fri, 18 Dec 1992 15:47:18 GMT

In article <XF3XVB1w165w@student.business.uwo.ca> pkedrosk@student.business.uwo.ca (Paul S. Kedrosky) writes:
>
>I have Quattro Pro for Windows. I think it's an excellent product with
>some interesting innovations/variations on the typical spreadsheet
>theme. I haven't tried Access but the word-of-mouth on it is very
>good as are the early sales figures.

I agree with QPW, it's the best spreadsheet I've ever used.  As for
Access, word on Compuserve is that it's extremely buggy, with much
emphasis on "extremely".  BTW, Access is a database product.



-- 
Pierre von Kaenel	| Skidmore College	     | pvonk@skidmore.edu
Math & CS Dept.		| Saratoga Springs, NY 12866 | (518)584-5000 Ext 2391

"Experience is the name everyone gives to their mistakes." Oscar Wilde
Newsgroups: misc.invest
From: ask@cbnews.cb.att.com (Arthur S. Kamlet)
Newsgroups: misc.invest
Subject: Re: wash sale rules - a tax question
Date: 13 Dec 92 18:46:10 GMT
Article-I.D.: cbnews.1992Dec13.184610.449
Distribution: usa
Organization: AT&T Bell Laboratories,  Columbus, Ohio

In article <Bz5zp7.C1u@austin.ibm.com> alice@snowmass.austin.ibm.com (Alice R. Chen) writes:
>       I plan on selling all of my current employee purchase plan stock holding
>       by year end.  
>       I am still on the purchase plan, so semi-monthly more shares
>       are purchased.
>
>       How does that effect my ability to take the captial lose for 1992?
>       Should I stop my employee purchase plan for a while so I can
>       take the lose?
>  
>       I was reading some other article in this news group, it seems 
>       to indicate that the 30 days wash sale rule apply to either
>       side of day-of-sale?(both before and after)

If you are planning to sell anyway, don't let the wash rules stop
you.  Go ahead and do what you have planned to do.

Let's use numbers:

Suppose your total investment in your employee's stock plan is now
valued at $7,000 and would result in a loss of $1,500.

And you would invest (buy) $200 each month.

WHat the wash sale rules end up doing is making you defer 200 of
your $1,500 loss until the time you sell the shares you bought for
$200.  You can still claim the $1300 loss.  And later on you have
another $200 loss coming to you.

So it would seem you should not let the wash rules prevent you from
doing what you planned to do.
-- 
Art Kamlet  a_s_kamlet@att.com  AT&T Bell Laboratories, Columbus
Newsgroups: misc.invest
From: barad@chartres.ee.tulane.edu (Herb Barad)
Subject: Re: Snapple - Does it really go public Tuesday?
Organization: /home2/barad/.organization
Distribution: na
Date: Tue, 15 Dec 1992 18:51:36 GMT
Nntp-Posting-Host-[nntpd-6631]: chartres.ee.tulane.edu

Yes, Snapple went public today (Tuesday).  The IPO was for $20/share
and there was a big demand for it.  I think it opened on the market at
around $25/share and went up into the low $30's.

Herb
--
Herb Barad	[Signal & Image Processing Laboratory]
		[Electrical Engineering Dept. - Tulane Univ.]
INTERNET:	barad@ee.tulane.edu
Newsgroups: misc.invest
From: dbk@pslu1.psl.wisc.edu (Don Katz)
Subject: Re: "Market efficiency" 
Organization: Physical Sciences Lab, University of Wisconsin
Date: Mon, 21 Dec 92 03:12:32 GMT

In article <1992Dec17.220305.10727@microsoft.com> avib@microsoft.com (Avi Belinsky) writes:
>In article <BzD4w7.J4F@news.cso.uiuc.edu> cs101a64@ih-nxt05.cso.uiuc.edu (cs101 student) writes:
>|   Furthermore, many market inefficiencies have been found.  Simply buying  
>|the stocks with the lowest PEs or price/book ratios has been a proven  
>|method to outperform the market.  
>
>Not that Malkiel speaks "The Truth (tm)", but I do believe him when
>he says that there are no known provable methods that outperform the
>indices on a risk-reward basis.  

From Malkiel, A RANDOM WALK, 5th edition, Chapter 8, p. 195, "There is
some evidence that a portfolio of stocks with relatively low earnings
multiples has often produced above-average rates of return even after
adjusting for risk."

He goes on to "Yes, but" this result, but he does not deny that there
is evidence that this strategy works.

Don
"Just the facts, ma'am"



-- 
-----------------------------------------------------------------------------
Don Katz                                .         Physical
                                       .- / \ -.      Sciences
University of Wisconsin - Madison   ./'  /+-+\  `\.       Laboratory   E-MAIL
From: ben@bailey.UUCP (Ben Bailey)
Subject: Re: Sorry, my fault...
Newsgroups: misc.invest
Date: 18 Dec 92 02:11:28 GMT
Distribution: world
Organization: Ben Bailey's Home..Tampa Fl.

ghuntres@nyx.cs.du.edu (Gary  huntress) writes:
> 
> I really want to appologize to everyone for todays plunge in IBM stock.
> It was all my fault.  I bought some on friday, so obviously it was 
> headed for the dumper.  'cheez, you'd think I'd learn after buying
> Westinghouse at 23 (down from 27) - currently at 12.
> 
> There, I feel better now.   Hmmm, maybe a couple of calls, after all
> its got nowhere to go but up! :-)))))
> 
> Gary "buy hi sell lo" Huntress

Gary, you haven't recently bought any Borland, have you?   If so,
PLEASE let us know when you intend to SELL!

Ben
--
Ben Bailey                 ben@bailey.uucp -- bailey!ben@uunet.uu.net
12210 Shady Forest Dr.     ben@bailey.tscs.com
Riverview, Fl. 33569       -- The main thing is to keep the main
813-677-5021                  thing the main thing.  Mainly. 
Newsgroups: misc.invest
From: etpeters@dal.mobil.com (E. T. Peterson(Eric))
Subject: Re: Free Stock Newsletter By E-mail
Organization: Mobil Exploration & Producing Technical Center(MEPTEC), Dallas. 
Distribution: na
Date: Wed, 16 Dec 1992 18:45:57 GMT

In article <BzC0Fw.24J@sdf.lonestar.org>, mrand@sdf.lonestar.org (Marc Randolph) writes:
|> In article <Bz3tIn.Lq@cs.uiuc.edu> watanabe@cs.uiuc.edu (Larry Watanabe) writes:
|> >[...]
|> >There are no funds averaging > 20% over 10 years.
|>            ^^
|> >
|> >-Larry Watanabe watanabe@cs.uiuc.edu
|> 
|>    I hope you meant to type "several" rather than "no".  CGM and 
|> Sit New Beginning, as well as a few others, have returned just over 20% 
|> avg over the past 10 years.

Maybe we need a precise definition of "return".

A 200% gain in ten years seems to be an average "return" of 20%,
but a fund returning just 11.6% each year (with reinvestment
of the 11.6%) will give you a 200% gain in 10 years.

So would you say the return is 20% per year or 11.6% per year?
Which method of calculation applies to the above mentioned funds?

*********************************************************************
Eric Peterson                  The sooner you fall behind,
Research Geophysicist          the more time you'll have to catch up!
(214) 951-3251
etpeters@drsol1.dal.mobil.com
*********************************************************************
Newsgroups: misc.invest
From: kjhart@pbhya.PacBell.COM (Kenny J. Hart)
Subject: Body Shop
Organization: Pacific * Bell
Date: Thu, 17 Dec 1992 20:34:41 GMT

I kinda got into this thread in the middle, so my ???? are
this:

1) Is Body Shop traded in the US??

2) What is it's ticker symbol??

3) What was the latest price??


-- 
  Kenny Hart               
  kjhart@pacbell.com      

From: sankars@hpcupt1.cup.hp.com (Sankar Subramanian)
Date: Sat, 12 Dec 1992 02:09:47 GMT
Subject: Re: College investments for unborn children
Organization: Hewlett Packard, Cupertino
Newsgroups: misc.invest


Please post or forward any responses as I am in a similar situation.

Sankar Subramanian
=============================================================================
Sankar Subramanian                
Hewlett-Packard                   
email   : sankars@hpda.hp.com
=============================================================================

Newsgroups: misc.invest
From: jonathan@extropia.wimsey.bc.ca (Jonathan)
Subject: need help on mutual fund
Summary: how to select mutual fund in Canada?
Keywords: mutual fund
Organization: Immortal Freedom's Deck
Distribution: canada
Date: Fri, 11 Dec 1992 19:33:03 GMT


Hi! netters. I have post this message to the misc.invest newsgroup, but I
receive no response. I guest they always talk about problems in USA, so
nobody knows the situation in Canada.

This is my first time choosing a mutual fund. All I want is a return of 
higher than my term deposit account (6.25%) in a year.

I am wondering does the "year-end wash sale effect" in USA exists in canada?
If it does is this the right time to buy mutual fund?

Any comment on Royal Trust Fund, Scotia Fund, HongKong Bank of Canada's Fund,
or any no-load fund will be appreciated.

Thanks in advance.
Merry Christmas.

Jonathan Wong (You can rely to me in my UBC's account at kwong@ee.ubc.ca)
From: zombie@EBay.Sun.COM (zombie)
Newsgroups: misc.invest
Subject: Re: Buying New Stocks On The Day They Go P
Date: 14 Dec 92 23:32:11 GMT
Reply-To: zombie@EBay.Sun.COM
Organization: Sun Microsystems, Inc.
NNTP-Posting-Host: redeye.ebay.sun.com

In article 3508@porthos.cc.bellcore.com,  tony2@prefect.cc.bellcore.com (gozdz,antoni s) writes:
>In article <Bz9EHo.IF9@encore.com> uhegde@walrus.encore.com (Uday Hegde) writes:
>>What is the best source for determining the companies that are going
>>public?
[...]
>The Institute for Econometric Research, Ft. Lauderdale,
>FL (1-800-327-6720) publishes a monthly newsletter "New
>Issues" ($95 per year, 5yrs $315). I don't know how
>good it is, thou.
>
>Tony

Monthly?  I am not sure what Uday is looking for, but I am looking for 
something that has this info *before* they go public, so I would have
time to look into it.

Thanks,
Erik



---
<><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>
<>                    zombie@redeye.EBay.Sun.COM                    <>
<><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>
Newsgroups: misc.invest
From: mrand@sdf.lonestar.org (Marc Randolph)
Subject: Re: "Don't Become Fixated on Mutual Funds" - Peter Lynch
Organization: sdf Unix, Dallas
Date: Sat, 12 Dec 1992 20:49:33 GMT

In article <1992Dec9.011955.19544@gumby.dsd.trw.com> suhre@meltami.dsd.trw.com (Maurice E. Suhre) writes:
>>Is there a mutual fund which specializes in short selling? 
>
>In short, no.
>
>I think mutual funds are prohibited from short selling.

    Mutual funds are NOT prohibited from short selling, but there might be
a limit on how much than can short.  Kaufmann does short selling, as I'm 
sure several others do.  Kaufmann has a big warning about this in the
prospectus, saying that it makes it a more "speculative in nature."
Newsgroups: misc.invest
From: ava@ddsdx2.jhuapl.edu (Ashik)
Subject: boston chicken
Summary: anyone know about boston chicken ?
Keywords: boston chicken
Organization: Johns Hopkins University
Date: Fri, 11 Dec 92 18:22:40 GMT

I was wondering if anyone has eaten at Boston Chicken ?
This is a new "fast food" restaurant that has opened up in Maryland.
There food is GREAT and very reasonably priced.
I heard they are opening up 12 new restaurants in Maryland.
Does anyone know if they are a public franchise ?
Can one invest in them ?

Thanks Ashik
Newsgroups: misc.invest
From: etpeters@dal.mobil.com (E. T. Peterson(Eric))
Subject: Re: Sorry, my fault...
Keywords: IBM plunge
Organization: Mobil Exploration & Producing Technical Center(MEPTEC), Dallas. 
Distribution: usa
Date: Wed, 16 Dec 1992 15:00:04 GMT

In article <1992Dec16.034224.3595@mnemosyne.cs.du.edu>, ghuntres@nyx.cs.du.edu (Gary  huntress) writes:
|> 
|> I really want to appologize to everyone for todays plunge in IBM stock.
|> It was all my fault.  I bought some on friday, so obviously it was 
|> headed for the dumper.  'cheez, you'd think I'd learn after buying
|> Westinghouse at 23 (down from 27) - currently at 12.
|> 
|> There, I feel better now.   Hmmm, maybe a couple of calls, after all
|> its got nowhere to go but up! :-)))))
|> 
|> Gary "buy hi sell lo" Huntress

Thanks for being honest!  We forgive you.  But next tinme could you tell us
before you buy a stock, so we can buy some puts and make a killing??

*********************************************************************
Eric Peterson                  The sooner you fall behind,
Research Geophysicist          the more time you'll have to catch up!
(214) 951-3251
etpeters@drsol1.dal.mobil.com
*********************************************************************
Newsgroups: misc.invest
From: yhari@uncc.edu (Yog Hari)
Subject: Re: What is wrong with MicroSoft ?!!!
Reply-To: yhari@uncc.edu
Organization: University of NC at Charlotte
Date: Sun, 13 Dec 1992 18:18:53 GMT

The reason microsoft is going down is because they are under investigation from the 
ftc for violations regading the way they market dos.  If someone has the most recent
article, maybe they could post it.  No formal suit has been filed, to my knowledge
as of yet.

Yog Hari	yhari@mosaic.uncc.edu


Newsgroups: misc.invest
From: josephk@aludra.usc.edu (Joseph Kim)
Newsgroups: misc.invest
Subject: Re: _Securities_Analysis_
Date: 15 Dec 1992 10:52:50 -0800
Organization: University of Southern California, Los Angeles, CA
NNTP-Posting-Host: aludra.usc.edu


Thanks for all of your informative replies.  I asked for the review 
of the _Securities_Analysis_ because I want to get to the next
logical step beyond the _Intelligent_Investor_.  Based on the replies,
it seems like _SA_ may not be the right way to go due to its readability
and the subject matter.  I am solidly convinced Graham-Dodd-Buffet style 
value investing is the way to go, and I want something that describes the 
*methodology* that embodies the principles described in the _II_.  
More nitty-gritty the better.  I would not even mind something that goes
"Step 1, do this, Step 2, do that," as long as those steps are the 
implementation of _II_.

Joseph

p.s. Time to time I see a novice investor asking for book recommendation,
and then some irresponsible netter suggesting some of the worst garbage
ever published.  I hope to permanently bar anyything from Givens, Schwab,
Lynch, Malkiel, and Zweig from entering into my personal library.




Newsgroups: misc.invest
From: zeke@fasttech.com (Bohdan Tashchuk)
Subject: Re: snapple IPO
Organization: Fast Technology
Date: Sun, 20 Dec 1992 02:32:32 GMT

In <1992Dec18.175314.10123@colorado.edu> wouk@alumni.cs.colorado.edu (Arthur Wouk) writes:

>after the heated trading period is over, many such ipos drop back to
>original price or lower. a bit of patience is rewarded by a chance for
>whatever long term profits there are in the ipo.

Has anyone read the prospectus?

Perhaps the prospectus can confirm my vague recollection that the principals
behind Snapple sold out or were bought out by some investment company.

So the founders no longer have much stake in its long term success. Which I
think is bad. Of course, this market segment is so competitive that Snapple's
long term success is pretty iffy anyway.

I drink it, but that's because they advertise on Rush Limbaugh.
Newsgroups: misc.invest
From: georgec@eng.umd.edu (George B. Clark)
Subject: Re: Free Stock Newsletter By E-mail
Date: Fri, 11 Dec 92 17:57:18 GMT
Organization: University of Maryland
Distribution: na

In article <Bz3tIn.Lq@cs.uiuc.edu> watanabe@cs.uiuc.edu (Larry Watanabe) writes:
>
>Most small, free newsletters don't intend to stay that way.
>If a stock is thin enough, even a relatively small buyership
>can affect the price.

So what? That's got nothing to do with anything, and neither did you
bubble-sort algorithm. I don't understand your negative attitude. 

This newsgroup is flooded with repetitive questions from beginners and
others needing financial advice. Someone offers to give them advice
by way of a free newsletter, and all you see is the down side of it.

The guy is offering us his advise for free. I'm willing to listen, and
unless he says something stupid, I'll keep listening.

Please respond to me by e-mail. Others on the newsgroup would rather not
hear you whine, I'm sure.


Newsgroups: misc.invest
From: fox@cs.nyu.edu (David Fox)
Subject: Re: Why is Borland downgraded?
Organization: Courant Institute of Mathematical Sciences
	<Bz07xK.7C3@encore.com> <2B263DA1.8339@ics.uci.edu>
	<1992Dec10.210433.24151@webo.dg.com>
Date: Thu, 17 Dec 1992 01:57:34 GMT

In article <1992Dec10.210433.24151@webo.dg.com> holmes@mrx.webo.dg.com (Chris Holmes) writes:

   In article <2B263DA1.8339@ics.uci.edu>, nyang@bonnie.ics.uci.edu (Nick Yang)
   writes:

   |> I heard on CNBC today that Borland is downgraded by several
   |> brokage firms, but they didn't say why.  Can anyone tell me why?
   |> I bought some BORL at 25.  I have been nervous, but haven't been
   |> worried since I believe Borland products are way superior than
   |> Microsoft's.  But now, should I start worrying?  Thank you very
   |> much for any info.

   They announced a work force reduction of 15% or 350 people, incurring a 
   $35 mil restructuring charge this quarter.  Their reason?  "...a looming
   price war in the software industry."

But hasn't Borland software *always* been cheap?  Doesn't a price
war put more pressure on Borland's competitors than on Borland?