Hold Off on Duff

The Hot IPO Trader
Friday, September 28, 2007
By Louis Basenese

Email – #167

** Hold Off on Duff

As we predicted, institutions were wary of Duff & Phelps (NYSE: DUF). Shares priced below the range at $16 last night. If this was any other deal, we’d be passing outright. A weak pricing typically translates into weak performance in the aftermarket.

However, I think Duff is being unfairly punished for its M&A exposure. And that’s an oversight that should eventually correct itself after one or two earnings reports.

Accordingly, let’s see how shares are received today before considering an entry. If investors are similarly unenthusiastic and we can get some sense of a support price, we might be able to get a great deal on this value shop.

I’ll be in touch early next week with an update.

Good investing,

Louis Basenese

Stock
Rec
Date
Rec
Price
Current Price
Comments

VMware (NYSE: VMW)
08/13/2007
$50.75
$83.12
Buy. Sell stop is $60.

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