High-Profit IPO Strategies Finding Breakout IPOs for Investors and Traders

by Taulli, Tom

• ISBN13: 9781118358405
• ISBN10: 1118358406
• Edition: 3rd
• Format: Hardcover
• Copyright: 2012-11-20
• Publisher: Bloomberg Press

Summary

A detailed guide to the new era of IPO investing Typically generating a great deal of interest, excitement, and volatility, initial public offerings (IPOs) offer investors and traders with opportunities for both short-term and long-term profits. In the Third Edition of High-Profit IPO Strategies , IPO expert Tom Taulli explains all facets of IPO investing and trading, with a particular emphasis on the industries that are fueling the next generation of IPOs, from social networking and cloud computing to mobile technology. In the past year alone, many of these types of IPOs have provided enormous opportunities for nimble traders as prices have fluctuated widely for several months following the offering. This new edition reflects the new IPO environment and presents you with the insights needed to excel in such a dynamic arena. Discusses more sophisticated IPO trading strategies, explores the intricacies of the IPO process, and examines the importance of focused financial statement analysis Contains new chapters on secondary IPO markets, reverse mergers, and master limited partnerships Provides in-depth analysis of other major industries generating worthwhile IPOs Covers IPO investing from basic terms to advanced investing techniques Comprehensive in scope, the Third Edition of High-Profit IPO Strategies offers investors and traders with actionable information to profit in this lucrative sector of the financial market.

Author Biography

TOM TAULLI writes about venture capital and IPOs for Forbes.com as well as the IPOPlaybook.com. He has been involved in the financial markets since the mid-1990s when he launched WebIPO. It was a place where investors could go for research and access to deals during the dot-com boom. He has written several books, including Investing in IPOs, Investing in IPOs Version 2.0, The Complete M&A Handbook, All About Short Selling, and All About Commodities. Besides his writings, Taulli is routinely quoted in the media about upcoming deals with his interviews on CNBC and Bloomberg TV. He can be reached at [e-mail] or on Twitter at @ttaulli.

Table of Contents

Foreword

Introduction

Part I:  IPO Fundamentals

Chapter 1: Getting IPO Shares

Risk

The Calendar

Online Brokers

Build Relationships with the Syndicate Firms

Dutch Auction

Buy on Secondary Markets

Private Placements

IPO Mutual Funds

Direct Share Program

Follow-On Offerings

Direct Public Offerings

IPOs to Avoid

References

Chapter 2: IPO Basics

Why Do Companies Go Public?

Cast of Characters

References

Chapter 3: IPO Process

Laws that Impact IPOs

Part II: IPOs for Investors

Chapter 4: Finding the Best IPO Information

Information to Get Your Feet Wet

RetailRoadshow.com

Depth IPO Information

Edgar Resources

Other IPO information Resources

Chapter 5: Making the Sense of the Prospectus

Getting a Copy of the Prospectus

Main Sections

Front Matter

Glossary Material

Qualification Requirements

The Prospectus Summary

Risk Factors

Letter from Our Founder

Market Data and User Metrics

Use of Proceeds

Dividend Policy

Capitalization

Dilution

Selected Consolidated Financial Data

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Business

Management

Executive Compensation

Certain Relationships and Related Person Transactions

Principal and Selling Stockholders

Description of Capital Stock

Shares Eligible for Future Sale

Index to Consolidated Financial Statements

Miscellaneous Sections

Conclusion

Chapter 6: Balance Sheet

Some Fundamentals

The Balance Sheet

The Assets

The Liabilities

Chapter 7: Income Statement

Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A)

Chapter 8: Income Statement

Background

Chapter 9: Risk Factors

Inexperienced Management Team

Need for More Financing

Legal Proceedings

Market and Customer Base

Going Concern

Competition

Dual-Share Structure

CEO Dependence

Reliance on the Government

Unproven Business Model

Limited History of Profitable Operations

Small Market Potential

Cyclical Businesses

Chapter 10: IPO Investment Strategies

Neighborhood Investing

Invest in What You Know

Study Mutual Fund Holdings

Strong Backers

Analyst Coverage

IPO Rules-of-Thumb

Buy on the Opening or Wait for the Lockup to Expire?

Buying on Margin

Options

Conclusion

Chapter 11: Short Selling IPOs

How Short Selling Works

Part III:  IPO Sectors

Chapter 12:  Tech IPOs

The Cloud

Social Networking

Mobile

Marketplaces

Security

Big Data

Evaluating a Tech IPO

Conclusion

Chapter 13: Biotech IPOs

FDA Approval

Analyzing Biotech IPOs

References

Chapter 14: Finance Sector IPOs

Banking

Asset Managers

Private Equity Firms

Online Brokerages

Insurance

Specialized Online Financial Services

Conclusion

References

Chapter 15: Retail Sector IPOs

Conclusion

References

Chapter 16: Foreign IPOs

Advantages of Foreign IPOs

RISKS

IPO Process for Foreign Deals

American Depositary Receipts (ADRs)

Direct Investments in Foreign IPOs

Chapter 17: Energy IPOs

Crude Oil

Natural Gas

Coal

Alternative Energy

Types of Energy Companies

Evaluating an Energy Company IPO

Master Limited Partnerships (MLPs)

Chapter 18: REIT IPOs

Trends in the Real Estate Market

Basics of REITs

Part IV: Other IPO Investments

Chapter 19: IPO Funds

Types of Funds

Mutual Funds

Exchange-Traded Funds (ETFs)

Closed-End Funds

Hedge Funds

Fund Strategies

References

Chapter 20: Spin-Offs

The Basics

Investing in Spin-Offs

References

Chapter 21: Fad IPOs

Spotting the Fads

Knowing When to Get Out of Fad IPOs

Conclusion

Chapter 22: Secondary Markets, Angel Investing and Crowdfunding

Pre-IPO Funding Process

Accredited Investor

How to Become an Angel Investor

Angel Deal Structures

Strategies for Angel Investing

Due Diligence and the Term Sheet

Secondary Markets

Chapter 23: The 100X IPO

The Amazon.com IPO

Conclusion

Appendix A: The Underwriting Process

Appendix B:  Analyzing the Financial Statement Items

Glossary

About the Author

Index