Outlook of IPO for this year 2013: 1.

After the adverse sentiment of IPO in 2011 and 2012, many companies are ready and maybe desperate to go public. 2. IPO subscriptions in 2013 will be a big hit. The valuation of IPO tends to be more conservative/reasonable because it is not a full blown bull market yet. 3. At the end of 2012, we were starting to see huge profit in IPO like 1829 . 4. I believe the IPO prosper cycle do come back this year and you should be ready for the ride :).

Check out IPO recommendation and year-to-date scorecard here: http://www.scribd.com/calvinchoi0 (You are strongly advised to SUBSCRIBE to the blog so that you will get instantaneous update for the latest recommendation. I only invest IPO based on the very latest info from the market.)
Note that this blog is just a chronological record of my IPO subscription, and therefore it will only be updated when I subscribe to an IPO.

Risk Level:

Low Risk Medium Risk High Risk

2013 Profit =
Co de Company
484 1290 484 1273 6863 1363

SUMMARY $5,701 Return =

Subs cribe ?

11%
Profit ($) 5,443 (310) (6,263) (2,369)

# of Shares

Deposit Magin First (10% of Cutoff Trading Total) (noon) Day

18-Oct 18-Oct 24-Sep 20-Sep 17-Sep 16-Sep 28-Oct 28-Oct 3-Oct 2-Oct 27-Sep 25-Sep

Cabbean 200,000 57,000 Huirong 200,000 47,000 Forgame 10,000 56,000 HK Fianace 500,000 53,000 China Huishan 200,000 54,000 CT ENVIRONMENTAL 200,000 40,000

1373 2386 6881 1319 2033 2078 3668 1348 1232 540

International 3,117 200,000 Housewares 57,000 16-Sep 25-Sep SINOPEC (926) Engineering 40,000 54,000 14-May 23-May ChinaGalaxy 6,317 80,000 55,000 13-May 22-May Oi Wah 2,581 500,000 50,000 1-Mar 12-Mar Time Watch 391 400,000 55,000 28-Jan 5-Feb PanAsialum 100,000 46,000 25-Jan 5-Feb (2,971) Chinalco 300,000 58,000 22-Jan 31-Jan (6,379) Quali-Smart 1,560 350,000 53,000 15-Jan 23-Jan Golden 3,237 Wheel 300,000 53,000 7-Jan 16-Jan Speedy 2,274 600,000 50,000 7-Jan 15-Jan
DETAILS
Sub Magin First scri Cutoff Trading be? (noon) Day
Subscri bed (# Deposit Busines of (10% of s Fee Shares) Total) ($) Nature ($)
200,000 200,000 10,000 500,000 200,000 200,000 200,000 40,000 80,000 500,000 400,000 100,000 300,000 350,000 300,000 600,000

Code 484

Company Cabbean

Allocate Intere d (# of IPO Sold Com st ($) shares) Price Price m ($) 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 500 25,000 35,000 18,000 10,000 5,500 18,500 8,000 8,000 7,000 36,000 4,000 14,000 8,000
2.80 2.28 51.00 1.03 2.67 1.48 2.81 10.50 63.00 1.04 2.53 1.38 3.18 10.50

Profit ($)

18-Oct 28-Oct 1290 Huirong 18-Oct 28-Oct 484 Forgame 24-Sep 3-Oct 1273 HK Fianace 20-Sep 2-Oct 6863 China Huishan 17-Sep 27-Sep 1363 CT ENVIRONMENTAL 16-Sep 25-Sep 1373 International Housewares 16-Sep 25-Sep 2386 SINOPEC Engineering 14-May 23-May 6881 China Galaxy 13-May 22-May 1319 Oi Wah 1-Mar 12-Mar 2033 Time Watch 28-Jan 5-Feb 2078 PanAsialum 25-Jan 5-Feb 3668 Chinalco 22-Jan 31-Jan 1348 Quali-Smart 15-Jan 23-Jan 1232 Golden Wheel 7-Jan 16-Jan 540 Speedy 7-Jan 15-Jan TOTAL GAIN
Return on Initial $50,000 Investment

57,000 47,000 56,000 53,000 54,000

100 100 100 100 100

100 100 221 100 100 144 265 100 100 100 144 100 100 100

5,443 (310) (6,263) (2,369) 3,117 (926) 6,317 2,581 391 (2,971) (6,379) 1,560 3,237 2,274

40,000 100 57,000 54,000 55,000 50,000 55,000 46,000 58,000 53,000 100 100 100 100 100 100 100 100

5.30 0.98 1.35 4.13 1.75 1.50 1.72 0.82

5.72 1.35 1.45 3.79 1.60 1.98 1.99 1.15

53,000 100 50,000 100

5,701

11%

Performance 2010 2011 2012

of $50,000 investment for the year (see preivous Blogs): $166,000 +230% Gain $86,000 +70% Gain $70,000 +40% Gain (no Blog update)

Sorry I did not update the Blog in 2012. I only subcribed #1339 and #1829 .

I believe IPO subscription is not high risk. Each IPO could be a bit risky, but if you study well and subscribe regularly, the risk level is medium to low risk only. But of course, you should put majority of your investment in blue chip stocks for the long haul. You should only allocate a small portion of your wealth in such short term speculation. The rules of game are:
1. 2. 3. 4. 5. 6. About $50,000 is used for each IPO. 90% margin will be leveraged. Recommendation will be given before 11am before the noon deadline. I normally will sell at grey market or immediately on the 1st trading day. A score card will show the YTD profit. If you make some money, donate 10% to your favorite charity.

Reference sites:
http://www.facebook.com/profile.php?id=670773971&v=app_2347471856&ref=profile http://www.scribd.com/calvinchoi0 http://specials.on.cc/IPO/index.html http://www.mpfinance.com/ipo.htm http://news.google.com.hk/news/section?pz=1&cf=all&ned=hk&topic=b&ict=ln http://hk.biz.yahoo.com/news/stock/ http://orientaldaily.on.cc/cnt/finance/ http://hk.apple.nextmedia.com/realtime/ http://www.hsbc.com.hk/1/2/hk/investments/ipo http://www.finet.hk/mainsite/newscenter/ http://www.quamnet.com/traderscornerList.action?listSectionCode=TC_IPO http://www.primesec.com.hk/rev2/big5/ipo.html http://www.isurewin.com/realink/ipo.jsp

Common Q&A
1. What is Margin Subscription? Say you use $10,000 for IPO investment. Margin subscription is that you borrow $90,000 from the stock broker so that you can subscribe $100,000 IPO.

2. Is Margin Subscription risky? Yes, it is somewhat risky. For example, like for the IPO , if you use $64,000 to subscribe for $640,000 IPO, you were actually being allotted $152,880 of . It meant that you had to put in extra $88,880 to cover it. But if you sold the IPO the next day, then of course you did not need the extra money. For vast majority of IPOs, such margin call will not happen since the ones that I recommend are probably highly oversubscribed. You will only get a small allotment. Moreover, although risk exists for each IPO, if you do it consistently and persistently over many IPOs, the overall risk is quite low. 3. How costly is Margin Subscription? The interest rate is really low at the moment, ranging around 1%. Assuming you use $60,000 to subscribe, the interest for $540,000 for the usual 7-days subscription is about $100 only. The interest cost is cheap, but of course you should observe the risk in Q2 above. 4. What is the maximum margin I can leverage? Many banks and stock brokers offer 90% margin financing. Some brokers like Phillip Securities and Prudential Brokerage offer 95% margin financing. 5. What is the best time that I should sell the IPO? It depends on your own practice and habit. I personally sell them in grey market, in at-auction or immediately on the 1st trading day. I found that it is most pleasant for my situation. 6. What is grey market (pre-market trading) for IPOs? The grey market is opened from 4:30 - 6:00pm of the day before the 1st trading day. I believe Phillip Securities, Prudential Brokerage and Emperor Securities provide the service. 7. What is at-auction order for IPO? If you place your sell order before 9:15am, your order will be matched at 9:15am against the buy order. 8. Which is better - bank or stock broker? It is quite easy to place your order through internet banking of bank, and the settlement is well integrated with your bank saving account. However, if you have a familiar stock broker agent, the experience can be very pleasant - you can place and finish an order in about 10 seconds.