Daren, I'm not a stock expert either, However, IPO's can be good and bad.
I got in on an IPO for GS - Goldman Sacs.
It was to IPO for 50 or so and when my buy went through I had paid 77, so my 100 shares that I thought would be $5000 turned into $7700, not to bad, I did sell out at 92 I think it was about a year later.
A bad one I did though was an IPO for PalmPilot, was to IPO for 35 had a 1 year target of 85, I put in an order for 100 shares as Palm was to do very well, well it did, by time my buy went through, only a few minutes into the day, I bought it at 145. OUCH!!!
What should of been a $3500 to $5000 buy turned into a $14,500 buy,, got money?? I made the buy, now pay for it.
Today GS is at $97 and Palm is at $11, hell of a down turn from 145 for Palm, while GS has held strong. I did sell Palm out at a loss a few months after buying it , sold at $85, cut my loss and run. Good thing I did, went all the way down to $8.00 over the next year. The crash of 2000.
Wish I'd had the $$$$ to do ebay IPO, oh well. I would of gone for that, but today their P/E is 104, the stock did a split at 120. I'd still like to have some.
I like to keep the P/E below 50 when doing stock buys.
Like I said you never know for sure what you will pay for a stock on the IPO.
The big thing to look at is the P/E.
The P/E on GS right now is 16.62
The P/E on Palm was n/a but has a 1year forward P/E of 112.00, that is getting kind of high.
As to your question, will I buy Google?
I am thinking about it, questions,, are they turning a profit now? What is the 1 year target? and What do we think the P/E will be?
I don't know all there is to know, all the above is the old been there done that!!
What I am saying is be ready for the worst and hope for the best..
Hope that all helped some anyway.
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