IPOs for Everyone: The 12 Secrets of Investing in IPOs
TODAY'S IPOs ARE PRICED TO MOVEThe truth is that if you're not a big-money player who can flip a new issue fast, IPOsare rarely good bets. But that may be changing.Maybe the only job tougher right now than being Bill Clinton's spokeswoman is selling new stock on Wall Street. In the first two months of 2000, there were 70 initial public offerings. So far this year? Nine, a low not scraped since 1979. Five of these new stocks are already under water-cold certification that so far, 2001 is an IPO bear market.What should you make of this? If you've ever wanted to buy a new issue, now's the time to get serious. For prospective IPO buyers, "this really is the best time, because there is no competition for these deals," says Linda Killian, a partner at IPO investing boutique Renaissance Capital and co-author of the new book IPOS for Everyone, "They get priced to move.". . .--by Robert Barker, BusinessWeek