IPO Boutique

       A secondary, also called a secondary public offering or follow-on offering, is an additional issue of stock by a company which has already had an IPO. Similar to IPO's, the price of secondaries is set the evening prior or morning of their initial trade. Secondaries are priced, usually at a discount, relative to the prior closing transaction of the company's existing shares. As is the case with IPO's, interested investors place an indication to buy or also known as indication of interest for these shares with one of the underwriting stock brokers.

       The discounts in pricings in 2011, and for years earlier, often was very attractive. IPO Boutique rates secondaries solely for their one day performance, and we caution everyone to only use discretionary funds when purchasing secondaries. Given IPO Boutique's track record for our BUY-NEUTRAL-AVOID rating for Secondaries you are likely to enhance your chances of getting good returns with secondaries (on the opening day) with an IPO Boutique advisory subscription.