I am trying to analyze how much amount should I risk trading Facebook from its open price.
I analyzed 150 of the recent IPO’s and here are the conclusions
Out of 150 recent IPOs I analyzed, 116 IPOs traded more than 1 million shares on their first day.
56 IPO closed above Open
15 IPO closed at Open
45 IPO closed below Open
Of the 56 IPO which closed above open,
14 IPO closed more than 10% above open
8 IPO closed between 5% to 10% above open
34 IPO made less than 5% from its open
Of the 14 best performing IPO’s, YNDX was the only one with the difference between Open to Low = -12.71%. Remaining best performing IPO’s did not go below -3.5%
Of the 8 moderate performing IPO’s, 3 IPOs went below -4% from Open but none went below -5%.
I separately analyzed Google and its first few days performance is really not stellar.
The conclusion is if an IPO goes below 4% from its open on its first day, then highly likely the IPO will not have a higher close.
Here are the best performing IPO’s based on their Day 1 performance of more than +10% close above open
CZR
GWAY
FRAN
WHZ
PRLB
BNNY
CARB
LNKD
MPO
YELP
DNKN
AWAY
YNDX
SPLK
Worst performing IPO’s which closed more than -10% down from their open
PRSS
BCEI
VCRA
P
SKUL
ZNGA
DDMG
PFPT
FFN
Z
