Topic: How To Invest

What is Pat’s commentary for the week of February 13, 2024

Article Excerpt

As we’ve often pointed out, IPOs (initial public offerings) tend to come to market when it’s a good time for the company or its insiders to sell. That may not be, and often isn’t, a good time for you to buy. One common problem is that the IPO sales process drums up a temporary wave of buying that can push up the stock’s price. When the buying dies down, the stock often falls. Still, good companies with good prospects do go public every year. One key Successful Investor way to cut IPO risk—and distinguish the good from the bad—is to wait till the next market slump and/or recession comes along. Then, take a fresh look at how recent new issues are performing. You may find a few of these companies have experienced business success, despite stock-market and economic turmoil. PagerDuty Inc. first sold shares to the public through an April 2019 IPO at $24 a share. It started out trading around $35 a share and…