IPO stocks are usually the worst counters to play if you don't know who are the players and how they operate the game. It's not usually how fundamentally the company sound but more importantly it's the big shots behind who are controlling the stock and decide the direction of the stock. Let's see Kim Heng Offshore as an example.
From IPO where the buying interests surged in to after a few weeks of selling, the interests although did not die off but that's usually the start of an avalanche to come. After the fake rebounds, the stock continue to meet with sellers whom those stale bulls who longed at a high price, looking to sell down and cut loss. As the melting down continues and with so many penny seasons with the stock moving, it's signalling that the stock lost is steam and interest in the retail space. The volume decreased tremendously and after a year, it's plain obvious that the insiders and directors have cashed out from this counter. When studying stocks, I ONLY use charts to aid me and there is no need for any reports or studying the fundamentals. So far so good and yield me 6 digits per year.
Ronald K - Market Psychologist - A Stock Market Opportunist
