IT IS interesting to study how people react to the euphoria when a stock is hitting ceiling a few minutes after it opened through an IPO (initial public offering).
However, it is doubly arousing to know how the same people process in their brain the fear, anger, angst or dread in what might happen as they witness the chart in bloody red, with lower lows and lower highs developing by the minute like a descending stairs.
As reported, AllDay Marts, Inc. ($:ALLDY) made a very successful debut in the Philippine Stock Exchange with its share rising 50 percent to 0.90 apiece and hitting the ceiling minutes after the opening bell. (See also: From AllDay to All Die )
The firm controlled by the Villar family raised P4.5 billion from its oversubscribed IPO of 6.86 billion shares and 685.71 million over-allotment option shares at P0.60 per share.
Since ceiling occurrences seldom happen now, retail and institutional investors were most happy that $:ALLDY delivered the expected profits.
But overeager buyers who predicted a second- and third-day ceiling were hugely disappointed, as $:ALLDY made a mad rush to the south.
In Investagrams, Metal Trader posted this on Thursday:
"IPO priced for retail traders, kaya mas mataas ang Value ng Sell Off today than yesterday's listing. While Yesterday, instis sold some percentage of their position at ceiling price also at today's opening, NOW they are buying it back while the retail traders are running for the exit. Instis just withdrew their capital with some gains, from today moving forward it's all about profit, they can just leave their $:ALLDY shares to hit 3-4 pesos. Let's admit it, we retail traders are easily shakin down when the instis starts dumping." (Unedited post)
Angela S. retorts: "True. Classic shake out."
Hz said, "$:ALLDY may campaign funds na," followed by Joel's "panalo na si Sen. Mark" and Jerson's "meron na hahaha, yung mga ipit at cutloss, mag kacampaign against him. hahahhahaha."
ZxCEB contributes a more positive, hopeful post: "Holding tightly my IPO shares. Still waiting for the big upside. Balikan ko tong post ko after 2 months. $:ALLDY."
DTM Trading tried to be cryptic when he said, "$:ALLDY Distribution na ata ng ayudang shares."
Others I heard said in mockery, "From AllDay to Half Day."
Feedback is welcome from non-readers at ports.reports@gmail.com .