hamhead

IPO is going to have a lot more risk to it than anything else.

I doubt Loyal3 is getting share allotments at the IPO price - they'll execute the trade later in the day after a lot of movement has taken place.

Most IPOs have a tendency to "pop" the first day - the initial IPO price is priced fairly but the share prices rise because of demand on people wanting to get in no matter what cost.

You're going to have a tendency to buy high. And this is where Loyal3 not having limit orders hurts.

A recent example is ANET - the shares were sold at an IPO price of $43 a share to insiders with granted allotments. It opened trading at $55 a share and currently trades at $60.

Most of the time the fundamentals don't support that post IPO valuation. If the company and the underwriters thought it could fundamentally be offered at $60/share then they would have priced it there. More money for the company and more money for the underwriters.

f0xx

Glad to know I wasn't the only one that headed to this thread. lol

gunner725

From (http://finance.yahoo.com/news/gopro-...125000601.html)

"GoPro, Inc. today announced that it's using the LOYAL3® Social IPO Platform™ to make an allocation of its Class A common stock being offered in its initial public offering available to customers and fans at the same price, and at the same time, as Wall Street."

"The underwriters have reserved up to 1.5% of the Class A common stock to be sold by GoPro in the IPO through the LOYAL3 platform."

hamhead

So they'll offer 267,000 shares at the IPO price on Loyal3 (they are offering 17.8 million shares in the IPO), or only about $5.6M total available @ 21/share (low end of IPO price expected).

560 MSers @ $10k would take the whole allotment.

Chances are if you put in a $10k order it won't get fully filled IMO.

f0xx

My issue is the rapid up swings and down swings that can be had with a tech IPO. I'm not convinced this will skyrocket and stay there.

As I haven't dabbled in Loyal3, I'm assuming there is no way to buy then sell quickly. I've read through here they do bulk buy/sell orders right around the same time every day. How will that hold up in this case?

gunner725

From the FAQ;

"IPO shares will be allocated before market open the day after pricing. The market typically opens at 9:30 am Eastern Time, Monday-Friday."

"Your IPO shares may be sold the first day they begin trading on the open stock market"

If you put in your Sell order by 2pm EST time, it will be executed that day.

familyodyssey

I went in for $2,500 and i can cancel my reservation anytime before the final price is set. They did charge my card $350 to meet minimum requirements for account balance. That isn't anything substantial but if you are a few hundred away from meeting your spend requirements, you could cancel out and cash out the $350 at no cost. just an FYI

opus2002

How does one cash out here? Do they send you a check, do you link it to your bank account?

gunner725

Linked to Bank Account

maksimfa

You are extremely wrong. Please bother to do at least 5 mins of research.

This is an actual ipo allotment, not purchase on there secondary.

Secondly, this is not facebook or anything else completely overhyped.

You have a lot of inefficiency in the ipo market, hence why iPos can make money if you have the right strategy.

hamhead

Which is why my post after this about twenty minutes later clarified my position since I didn't know it was an allotment and not simply orders being filled same trade day of IPO.

Their allotment is small.

GoPro has plenty of hype in its IPO. Its not Facebook hype, but is still has a very high proposed valuation when you look at its revenue and sales.

maksimfa

Correct, and hype is great on ipo, if you get allotment.... Hence why I said having an ipo strategy.

There is money to be made here, I see this ipo being oversubscribed and perhaps more shares being made avail. The business is solid though, and has potential... It is actually one stock I may actually hold for next quarter or two, particularly in this melt up market.

Right now for ms and the ipo pop which i am fairly confident it will have, i am in for max, and will try to get more shares elsewhere. I will do my due diligence in the next two weeks, speak to my institutional contacts about it and see if it makes sense to hold it, granted at a paired down position.

gunner725

Whats everyone doing to ensure their card doesn't get flagged for fraud (thus canceling the order)?

I have the text messages set up for Citi. Calling and informing them about a large purchase may be risky for me (already have about 70 Loyal3 transactions on my account)

drdrew450

in for 2500 using my arrival

maksimfa

Why would it be an issue?

It would just not authorize, for any number of reasons. no issues if it is a known charge.