Searching for Value in Busted IPOs

One area of the market that is rarely thought of in connection with value investing is the market for initial public offerings.

IPOs are usually priced on the most favorable terms for the seller and therefore are rarely attractive on a valuation basis. This changes somewhat when you add a time lag and go back over the offerings of the last year. The vast majority of the deals have caught a solid bid as the markets have gone higher, moving from merely overvalued to stupidly priced. Some, however, stumble out of the gate and are quickly dumped by investors who dreamed of profits and glory from the offering....708 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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