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Check out IPO recommendation and year-to-date scorecard here:
(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 √ Low Risk

Newly Introduced √ Medium Risk
√ High Risk

2011 Profit = $0 Return = 0%
Jan Profit Feb Profit Mar Profit
- - -
Deposit Magin First
Cod Subsc # of (10% of Cutoff Trading Profit
e Company ribe? Shares Total) ($) (noon) Day ($)
1143 中慧 √ 400,000 55,000 18-Jan 27-Jan -
1323 友川集團 X - - 4-Jan 13-Jan
2011 開易 X - - 4-Jan 12-Jan
1089 森寶食品 X - - 3-Jan 11-Jan

Sub Magin First Subscrib Deposit Allocated
scri Cutoff Trading ed (# of (10% of Busines Intere (# of IPO Sold Com Profit
Code Company be? (noon) Day Shares) Total) ($) s Nature Fee ($) st ($) shares) Price Price m ($) ($)
1143 中慧 √ 18-Jan 27-Jan 400,000 55,000 電子製造 100 200 1.35
1323 友川集團 X 4-Jan 13-Jan 塑膠用品
2011 開易 X 4-Jan 12-Jan 拉鏈生產
1089 森寶食品 X 3-Jan 11-Jan 雞肉供應
Return on Initial $50,000 Investment 0%
Performance review of this blog for the year 2010:
1. Roughly you would have tripled your initial investment of $50,000 to $166,000.
2. I subscribed 38 out of 90 IPO (about 4 in 10 on average).
3. On average, you would have earned $3,000 per IPO.
4. You would have lost on 6 IPO only.

Outlook for this year 2011:

1. IPO subscription will continue to be a relatively low risk investment amidst the
bull market phase 2 / phase 3 environment.
2. I will go after more high risk IPO since risky 碧生源 brought in a handsome return.
3. For your own investment, you probably should accumulate more blue chip stock
to enjoy the fruitful return of the peak of this bull market that will be happening
in 2011 or 2012.
4. I foresee the peak of Hang Seng Index to be 45,000 to 50,000.

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. About $50,000 is used for each IPO.
2. 90% margin will be leveraged.
3. Recommendation will be given before 11am before the noon deadline.
4. I normally will sell at grey market or immediately on the 1st trading day.
5. A score card will show the YTD profit.
6. If you make some money, donate 5% to your favorite charity.

Reference sites:

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 碧生源, if you use $64,000 to subscribe
for $640,000 IPO, you were actually being allotted $152,880 of 碧生源. 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

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.