Outlook of IPO for this year 2013: 1.

After the adverse sentiment of IPO in 2011 and 2012, many companies are ready and maybe desperate to go public. 2. IPO subscriptions in 2013 will be a big hit. The valuation of IPO tends to be more conservative/reasonable because it is not a full blown bull market yet. 3. At the end of 2012, we were starting to see huge profit in IPO like 1829 . 4. I believe the IPO prosper cycle do come back this year and you should be ready for the ride :).

Check out IPO recommendation and year-to-date scorecard here: http://www.scribd.com/calvinchoi0 (You are strongly advised to SUBSCRIBE to the blog so that you will get instantaneous update for the latest recommendation. I only invest IPO based on the very latest info from the market.)
Note that this blog is just a chronological record of my IPO subscription, and therefore it will only be updated when I subscribe to an IPO.

Risk Level is Newly Introduced

Low Risk Medium Risk High Risk

2013 Profit =
Cod e Company
Subs cribe ?

SUMMARY $0 Return =
# of Shares
600,000 300,000 Deposit Magin First (10% of Cutoff Trading Total) (noon) Day 50,000 53,000
7-Jan 7-Jan 15-Jan 16-Jan

0%
Profit ($)

1232
540

DETAILS
Sub Magin First scri Cutoff Trading be? (noon) Day
Subscri bed (# Deposit Busines of (10% of s Fee Shares) Total) ($) Nature ($)
600,000 300,000

Code

Company

Allocate Com Intere d (# of IPO Sold m st ($) shares) Price Price ($) 100 100
0.82 1.72

Profit ($) -

540 Speedy 1232 Golden Wheel

7-Jan 7-Jan

15-Jan 16-Jan

50,000 100 53,000 100

TOTAL GAIN
Return on Initial $50,000 Investment

0%

Performance of $50,000 investment for the year (see preivous Blogs): 2010 $166,000 +230% Gain 2011 $86,000 +70% Gain 2012 $70,000 +40% Gain (no Blog update)
Sorry I did not update the Blog in 2012. I only subcribed #1339 and #1829 .

I believe IPO subscription is not high risk. Each IPO could be a bit risky, but if you study well and subscribe regularly, the risk level is medium to low risk only. But of course, you should put majority of your investment in blue chip stocks for the long haul. You should only allocate a small portion of your wealth in such short term speculation. The rules of game are:
1. 2. 3. 4. 5. 6. About $50,000 is used for each IPO. 90% margin will be leveraged. Recommendation will be given before 11am before the noon deadline. I normally will sell at grey market or immediately on the 1st trading day. A score card will show the YTD profit. If you make some money, donate 5% to your favorite charity.

Reference sites:
http://www.facebook.com/profile.php?id=670773971&v=app_2347471856&ref=profile http://www.scribd.com/calvinchoi0 http://specials.on.cc/IPO/index.html http://www.mpfinance.com/ipo.htm http://news.google.com.hk/news/section?pz=1&cf=all&ned=hk&topic=b&ict=ln http://hk.biz.yahoo.com/news/stock/ http://orientaldaily.on.cc/cnt/finance/ http://hk.apple.nextmedia.com/realtime/ http://www.hsbc.com.hk/1/2/hk/investments/ipo http://www.finet.hk/mainsite/newscenter/

http://www.quamnet.com/traderscornerList.action?listSectionCode=TC_IPO http://www.primesec.com.hk/rev2/big5/ipo.html http://www.isurewin.com/realink/ipo.jsp

Common Q&A
1. What is Margin Subscription? Say you use $10,000 for IPO investment. Margin subscription is that you borrow $90,000 from the stock broker so that you can subscribe $100,000 IPO. 2. Is Margin Subscription risky? Yes, it is somewhat risky. For example, like for the IPO , if you use $64,000 to subscribe for $640,000 IPO, you were actually being allotted $152,880 of . It meant that you had to put in extra $88,880 to cover it. But if you sold the IPO the next day, then of course you did not need the extra money. For vast majority of IPOs, such margin call will not happen since the ones that I recommend are probably highly oversubscribed. You will only get a small allotment. Moreover, although risk exists for each IPO, if you do it consistently and persistently over many IPOs, the overall risk is quite low. 3. How costly is Margin Subscription? The interest rate is really low at the moment, ranging around 1-2%. Assuming you use $60,000 to subscribe, the interest for $540,000 for the usual 7-days subscription is about $100-$200 only. The interest cost is cheap, but of course you should observe the risk in Q2 above. 4. What is the maximum margin I can leverage? Many banks and stock brokers offer 90% margin financing. Some brokers like Phillip Securities and Prudential Brokerage offer 95% margin financing. 5. What is the best time that I should sell the IPO? It depends on your own practice and habit. I personally sell them in grey market, in at-auction or immediately on the 1st trading day. I found that it is most pleasant for my situation. 6. What is grey market (pre-market trading) for IPOs? The grey market is opened from 4:30 - 6:00pm of the day before the 1st trading day. I believe Phillip Securities, Prudential Brokerage and Emperor Securities provide the service. 7. What is at-auction order for IPO? If you place your sell order before 9:45am, your order will be matched at 9:50am against the buy order. 8. Which is better - bank or stock broker?

It is quite easy to place your order through internet banking of bank, and the settlement is well integrated with your bank saving account. However, if you have a familiar stock broker agent, the experience can be very pleasant - you can place and finish an order in about 10 seconds.