Last post on Mar 10, 2008 at 6:50 AM
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Automotive News, Future Vehicle
#6 of 15 Re: New IPO availabe time [louiswei]
Mar 07, 2008 (8:54 am)
Right now, we're looking to IPO at least one but perhaps more vehicles at 10:00am PT on Tuesday. I will confirm that Monday and post a message to the Forum so that everyone knows what's going on. I will also post a message on the game homepage.
#7 of 15 Re: New IPO availabe time [mikedrud]
Mar 07, 2008 (1:02 pm)
Is this BMW X6 IPO just going to be rediculous? I mean, if you are online when it becomes available, and you buy all you can...how can you lose?
#8 of 15 Re: New IPO availabe time [auditt311]
Mar 07, 2008 (1:05 pm)
The more you buy the less you'll make per share, so choosing how much to buy as it inevitably goes on up the first day will be half the strategy. The other half will be guessing what the peak will be so you can start shorting....
#9 of 15 Re: New IPO availabe time [auditt311]
Mar 07, 2008 (1:07 pm)
if you are lucky enough to be an early buyer, I'm sure you will do quite well.
However, I'm picturing this like trying to buy a TMX Elmo online on Black Friday 2006. You will need to refresh your screen nonstop for 5 minutes before the offering, then once it pops up, you can attempt several times to get your purchase to go through, and if you are lucky, you'll get it at a good price, if not, you'll pay way more than it SHOULD be worth.
#10 of 15 Re: New IPO availabe time [doctorlove]
Mar 07, 2008 (1:08 pm)
I don't think i understand "the more you buy, the less you'll make per share." Can you explain?
#11 of 15 Re: New IPO availabe time [auditt311]
Mar 07, 2008 (1:16 pm)
The smaller quantity you buy, the less it affects the stock price, thus the price you actually buy at is closer to the current stock price than if you buy a large amount. See when you buy or sell a stock you are affecting its price because you're changing the current book, so what you wind up buying at is impacted by how much your transaction is going to change the book.
BMW X6 has its IPO at $15.00 a share.
If I try to buy 1,000 shares it tells me the Estimated Share Price will be $15.50
If I try to buy 10,000 shares it tells me the Estimated Share Price will be $25.00
If I try to buy 100,000 shares it tell me the Estimated Share Price will be $75.00
That make it more clear?
#12 of 15 Re: New IPO availabe time [doctorlove]
Mar 07, 2008 (1:23 pm)
That makes perfect sense. I have one more question. Does activity up to the "Trade Summary" page (where you must click "Confirm Trade") affect the price of the stock? For example:
I want to buy 10,000 shares of AUA5 (it is currently at, say $70/share). I click trade, type that I want to buy 10,000 shares and click "Submit Trade". Has the effect of my purchase already been "felt" by the stock price before I click "Confirm Trade"? Or does that adjustment happen after the trade has been finalized?
#13 of 15 Re: New IPO availabe time [auditt311]
Mar 07, 2008 (1:27 pm)
Well there are two prices on that Confirm Trade screen, and they are very different.
The price at the top is the price the last trade took place at, so that occurred in the past.
The price at the bottom is the Estimated Share Price, and that is the price you are likely to get based upon the impact your trade is going to have. Now, prices can change quickly, so if you sit there and wait 30 seconds before you click confirm, it's possible the price will have changed by then. Because trades are happening all the time, it's impossible to perfectly predict what price your trade will take place at, so the only way to know is to look at your transaction history in your profile and see what price you wound up getting. Keep in mind for shorting this price will be inverted (a stock price of $400 will show up as $600 because $1000 - $400 = $600).
Mar 10, 2008 (4:33 am)
I will be interested to see what happens to the values of other stocks when the IPO comes out. Some people will have to sell off shares to generate cash to buy into the IPO. That could be good for several of my short positions. Maybe we'll get a Corolla correction.
#15 of 15 Re: IPO's [adamb1]
Mar 10, 2008 (6:50 am)
Actually prices may go up because many people have shorted these stocks and will need to cover their shorts to get cash. Many of the people who actually bought these stocks and have suffered losses probably gave up on playing.