IP Woes
Remember when IPOs were the talk of the town? That was then, and this is
now.Â
Now we see IPOs in a state of woe. Rather than exploding 700% on the first
day, they are opening either flat or down.
Let’s take a look at a few recent IPOs.
Today’s Watchlist:
(
MTWV |
Quote |
Chart |
News |
PowerRating),
(
ASCX |
Quote |
Chart |
News |
PowerRating),
(
COSN |
Quote |
Chart |
News |
PowerRating)
Metawave Communications
(
MTWV |
Quote |
Chart |
News |
PowerRating)Â actually rallied quite well out of
the pullback which followed its debut, moving from 10 to 40 in a matter of days.
Unfortunately, it has now returned to its original price.
Metawave is currently poised to break support. Set your alerts near the
intraday low from the opening day and watch for a small short opportunity based
on a breakdown. Of course, this is a lower-priced name, but so many of the IPOs
are.
Advanced Switching
(
ASCX |
Quote |
Chart |
News |
PowerRating) is a more recent release, but is
still in a similar state. Since its debut it has been in a downtrending channel,
failing after each rally.Â
When looking at a chart like this, I often think, it’s so low,
can it really move any further south? I then quickly reflect and names like
Boston Chicken, Koo Koo Roo (now Prandium), and Iridium come to mind.
Lastly, Cosine Communications
(
COSN |
Quote |
Chart |
News |
PowerRating) is another name in the
same group as Metawave. COSN has completed almost a perfect low-level topping
pattern. On Thursday it took out support, but managed to rally back with the
rest of the tech sector. At this point, we will watch for another move below
support, which was again tested on Friday. Set your alerts near Friday’s
intraday lows as well as Thursday’s. Adjust this as fits best within your
trading style.
A tout a l’heure,
Do you have a follow-up question about something in this column or other questions about trading stocks, futures, options or funds? Let our expert contributors provide answers in the TradingMarkets Question & Answer section! E-mail your question to questions@tradingmarkets.com.
For the latest answers to subscriber questions, check out the Q&A section, linked at the bottom-right section of the TradingMarkets.com home page.