Tag Archives: Visa

Twitter IPO Registration: Fidelity Invites Me To Bid, I Did, But Doubt Whether I Will Get Any. I Prop Up The Totem Pole.

Anura Guruge, June 8, 2013.

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by
Anura Guruge


Related Posts:
>> IPO flipping restrictions — Sep. 23, 2013.
>>
ETK called ‘FKU’ — Sep. 12, 2013.
>>
No longer own Apple — Sep. 11, 2013.
++++ Check category ‘Investments’ for more >>>>


twitteripo

Though I have been a customer for over 20 years, and have used them EXCLUSIVELY for all my investing since 2007 (when Schwab unceremoniously booted me out because I responded to one of their surveys saying I would NOT RECOMMEND them) the LAST TIME Fidelity threw a real IPO bone at me was in 2008 — that that was Visa. I think they felt bad for me. They could see how much money  I had lost between 2007 – 2008. ‘V’, of course, was a lifesaver for ME. Thank YOU, Fidelity. I also happened to buy, a fairly large (for me (and that could mean, in IBM talk (which I am a renowned expert at), 2 shares)) allocation of Bear Stearns stock the morning they went belly-up. If not for those two stocks I would be homeless again.

OK, to be fair to Fidelity I don’t apply for that many IPOs. I did apply for VMWare, LinkedIn and a few other ‘biggies’ and never got anything. I did NOT apply for FaceBook. I did not want 100 shares of FB. I did have a bad feeling. I just wanted a few — just to say I participated. So on IPO day, I did buy 5 shares, for ‘FREE’ (i.e., by selling AAPL options), at $38.09. Yes, those are now worth $50. Keeping them just as a joke.

Recently I have started dabbling in IPOs for the heck of it — without any major successes. But, I haven’t lost much money either — always the key criteria for me.

It is possible that like FB Twitter too might tank for awhile after the IPO. So I will not be heartbroken if Fidelity blows me off. I fully appreciate that I am a ‘no-op’, bottom of the totem pole when it comes to Fidelity investors — I am sure I am in the BOTTOM 95% percentile. So, c’est la vie. At least I can say I tried.

Did YOU Know That ‘They’ Now Have IPO Allocation FLIPPING Restrictions?

Anura Guruge, June 8, 2013.

..
.
by
Anura Guruge


Related Posts:
>>
ETK called ‘FKU’ — Sep. 12, 2013.
>>
No longer own Apple — Sep. 11, 2013.
++++ Check category ‘Investments’ for more >>>>


I used to be an IPO junkie. The very first stock that I ever bought was an IPO of sorts, dear Margaret Thatcher’sBritish Telecom‘ (BT) privatization lottery. I got an allocation, and unlike others, I, as ever, played by the rules, and only submitted one entry. I was hooked. BT, to start with, did extremely well. I then participated in every other ‘British’ privatization IPO: BP, BA, BAA etc. etc. To say I was right in the thick of the ‘dot.com’ mania would be an understatement. It was my life. I consulted for so many of the major players. I was at the Wellfleet office in Burlington the day they went public – though I can’t remember whether they gave me an allocation! I do remember with great fondness that CrossComm, a company that I spent a lot of time with, did put me on their ‘friends & family‘ list and as such I did get an allocation. I am sure I made money on that.

I took part in IPOs by rote. It was the thing to do. Yes, of course, I got burned. But, it was fun. Part of the dot.com mania.

Given that I have been with them since about 1989, though I am but a very small minnow when it comes to assets owned, Fidelity does allow me to bid on IPO allocations. Since I tend to be ‘long’ (though my son the investment whiz of 2013 is trying to cure me of that bad habit) I usually don’t bid for IPOs since I don’t have ‘cash’ lying around.

In 2008 I did bid for VISA (V) and was amazed and jumping for joy when I got an allocation. That and the ‘Bear Stearns‘ stock I bought the day they went BUST ensured that 2008 wasn’t as painful as it was for others.

Recently I haven’t been that fortunate and I had stopped asking. I asked for VMWare and LinkedIn and was overlooked. I didn’t bother with FaceBook (FB). Instead, just for fun, I bought 5 shares, on the IPO day for “free” (i.e., using money from an options call) just to say that I had participated in the IPO of the ‘year’. Yes, those 5 shares are NOW making money after a year.

Until now I have never encountered restrictions on selling IPO shares.

Flipping IPOs at the pop was what you were supposed to do. That how you made the ‘BIG’ bucks.

Last week after I sold the last of my Apple (APPL) stock I looked at the IPO market as a ‘good’ place to invest some of that hard fought capital. Bid on two, got one: ClubCorp Holdings (MYCC).

But, it came with a NO FLIPPING warning from Fidelity. Stopped me in my tracks. Seemed so UnAmerican. You can’t flip IPO shares? What next? You are going to be forced to buy healthcare insurance?

I called. As ever they are very, very nice and helpful. Appears that other brokerages do the same thing too; i.e., protect the major shareholder SELLERS by preventing new owners from dumping their shares.

So here is the Fidelity rules on it. Yes, you can sell BUT then you incur their wrath with a penalty. So, as of now I am going to think twice about asking for IPOs.

Click to ENLARGE.

Click to ENLARGE.