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Let's Play It By The Books
The Hot IPO Trader
Wednesday, December 19, 2007
By Louis Basenese
Email – #198
** Let’s Play It By The Books
Conventional IPO wisdom dictates the following…
If underwriters increase the deal (offering price or amount of shares), double your order. Typically, it means there’s strong demand and it should spill into the aftermarket to drive up prices.
Conversely, if underwriters cut the deal, we’re supposed to cancel our order. It indicates weak demand and the aftermarket performance is anyone’s guess.
Accordingly, we’re passing on Gushan Environmental Energy (NYSE: GU)…for now.
The deal priced well below the expected range at $9.60 last night. However, I suspect the weakness has more to do with general uneasiness about all things China. Not the company’s underlying fundamentals.
So, I’ll monitor the early trading action closely. If an entry makes sense, I’ll be in touch immediately.
I’ll also keep an eye on E-House (NYSE: EJ) and will be in touch if prices warrant increasing our stake. Shares popped 5% off its lows yesterday. But there’s plenty more room to run.
If no compelling opportunities emerge, expect your next alert in early 2008 as next week I’ll be enjoying time with family and friends. I hope you’ll be doing the same.
Wishing you and yours a Merry Christmas and a happy and healthy New Year!
Lou Basenese
P.S. – I invite you to join me at The World Money Show Orlando at the Gaylord Palms, February 6-9, 2008 along with 120+Wall Street experts who will tell you what to buy and what to sell in 2008! Invest four-days dedicated to planning and refining your 2008 portfolio by attending the 320+ workshops and panel presentations . Learn profit-making strategies during a rollercoaster market, safe-harbor stocks, and what ETFs to buy in a market meltdown along with hundreds of other insightful and profitable presentations when you attend FREE! Call 800/970-4355 and mention priority code #010161 or, Register online today !
Stock
Rec
Date
Rec
Price
Current Price
Comments
E-House (China) Holdings (NYSE: EJ)
12/17/2007
$21.16
$22.00
Buy.
Bi Louis Basenese is the Associate Investment Director for The Oxford Club . He began his career structuring asset protection programs for private business owners and later joined one of Wall Street’s leading investment firms as a top analyst and trading expert. Louis specializes in non-traditional investments such as hedge funds, managed futures, takeovers, IPOs and various other alternative investments. He has an MBA from the Crummer School of Business at Rollins College and draws upon both his academic and professional experiences to edit three elite trading services: The Takeover Trader , The Hot IPO Trader and The Long and Short Trader . Louis also is a regular contributor to the Oxford Club Communiqué and the Oxford Insight e-letter and is a top-rated speaker at financial conferences around the country.
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