Secondary Alerts: Information = Profits

Not enough IPOs?

That certainly not the case when it comes to the secondary market.

And IPO Boutique needs to be on your team to assist in these critical, time-sensitive decision.

The launch of IPO Boutique’s Secondary Alerts subscription was to satisfy the most active secondary-offering investor and/or trader of companies who have recently tapped the public markets for cash. We have tweaked and improved our service over the initial month since we launched and continue to do so today.

So how does a subscription to IPO Boutique make an investor money?

The most obvious way is to indicate for IPO Boutique’s BUY rated secondary offerings. As you can see from the chart below, BUY rated secondaries produced, on average, 3.6% above the first trade. Neutral rated secondaries by IPO Boutique traded 0.6% below its offering price.

Stay away from the bad ones — its that easy.

Additionally, there’s plenty of traders who say there is money to be made on the short-side of marketed offerings. When deals pushed multiple-days out, orders are collected by the underwriters and the way the book builds is critical to how the deal prices and trades on its ‘pricing day’. A weak book-building price may indicate a steeper discount in order to get the deal done.

IPO Boutique provides color on marketed deals. A trader on the short-side can use IPO Boutique’s color to their advantage.

How about pricing? IPO Boutique’s Secondary Alerts service provides pricing alerts (morning & night) of follow-on offerings. While its something we certainly cannot promise…there are times in which we receive information as soon as a particular issue is priced by an underwriting bank. This, at times, is while the after-market or pre-market sessions are still accessible. A discrepancy in the way an issue is being traded could be advantageous to the trader on the short or long side…given the pricing.

This investing game is tough enough. Why not add information and experience to your trading team when it comes to secondary offerings.