Bauer IPO

[chippa13 1844]

Bauer is growing, they are looking at Lacrosse, working on fitness again, and apparently the Professional Bull Riders love their helmets, there is so much room for expansion.

Sure, bull riding has really taken off.

[ZurichLions 0]

I also worked on Wall Street in IB - the one thing not to forget is that IPOs are generally slightly underpriced by the bookrunner to create a first day "pop" and keep the IB's client's happy. Remember, both the IPO company, and the institutional investors who buy the IPO are the IB's clients (IPO company is the client of the capital markets group and the investors are clients of the institutional brokerage group). So if you have a brokerage account at one of the IB's involved in the syndicate and can get in on the deal at the actual IPO price you are likely going to get a decent return on the first day "pop". However, once it pops, you should sell the shares - as someone has already said IPO's generally do not perform well in the first year after pricing. The reason for that is simple - think of it from the perspective of the owner, are you going to sell stock when its got a high value or a low value?

Agree on all points. The problem with selling the shares will be the secondary market.