Wednesday, February 8, 2012


Further research in IPOs has me questioning the wisdom of buying into IPO hype. In buying into a recent IPO I hope to capture exponential growth of a new issue. Ideally I would like the IPO to be a new product or service, purpose of raising funds would be to fund further expansion. It seems like more and more companies are really just subject to brighter men than me making fortunes.

MX seems to be just such a company. It is more than 50% owned by a very reach hedge fund guy that specializes in bankruptcies. It has made him very rich, somehting like top 200 in the country. A lot of my time looking into the company was spent looking into him as it was just odd to see one person listed as 50% owner of a Korean company.

Mx is capturing great market share in the semiconductor field, has a lot of patents, seems to be executing well. The chart shows recent powerful move, in lockstep with SMH. Pullback due. I think recent IPOs ZIP and SZYM could move in similar fashion.

Due to this company being 30 years old, not a new company, I have lost my enthusiasm.

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