Thursday, January 10, 2008

IPO Ideas & actions: chapter 1

I, like many others, made the mistake of not believing in GOOG when it went public. In all honestly, I just got too greedy. I did reverse my mentality when I bought MA but alas I sold too early. I only gain 70% from first day closing. (Stock has gone from IPO price of $40 to $230). I like three new IPOs: MXB, BX and N. MXB or MSCI/Barra is a behemoth in creating indexes and every ETF for international indexes created must pay royalty to these guys. Barra makes a fantastic software for security analysis and investments. Very expensive and very expansive. The price has seen quite volatile but potential is huge. BX, Blackstone, is the largest private equity company in the world. Quite conservatively run so much so that Chinese government had to have a piece of the action. The price has been getting hammered due to turmoil in credit markets but I think the three-five year potential is monstrous. N, NetSuite, makes SAP-type software for mid-market. Since IPO price has seen highs of 48 and now trades at 30, very close to IPO price. This is a great niche to be in and Larry Ellison of ORCL has had a great stake in the company. Seems Larry is trying to get into the mid-market from backdoor! Leaving ORCL and its culture alone while going after smaller clients.

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