Looking to get in on the NYMEX IPO

[BeL0wMe]

Hey, I really want to scoop up the New York Mercantile Exchange IPO, symbol NMX on Friday, as I have tremendous faith that it will double within the year. What would be the best way to get the cheapest IPO price? And do you think this stock will be any good?

[junglewarfare]

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tremendous faith

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thats a sublimely perfect way of describing it

[redrooski24]

I've been hearing a lot of hype about this IPO, but unless you have an inside track(know someone who works there/whatever) I'm pretty sure it's next to impossible to get them before they open on the market. They're being priced from $52-57 right? If that's the case, it'll probably open on Friday at $70+(if they don't raise the price again) and may not be worth it at that point. I know the exchange stocks have done well but the big IPO shootups in general can make it hard to justify buying the stock.

[pig4bill]

Open a new account with J.P. Morgan with a million dollars. Then ask for some IPO shares.

[dazraf69]

[ QUOTE ]
Hey, I really want to scoop up the New York Mercantile Exchange IPO, symbol NMX on Friday, as I have tremendous faith that it will double within the year. What would be the best way to get the cheapest IPO price? And do you think this stock will be any good?

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[DesertCat]

Someone asked me about buying this now, after it's more than doubled from the IPO to about the $130 range. I know little about NYMEX, but noted the following issues/questions.

- It's growing really fast year over year.
- It will make about $2 per share this year.
- It's trading at a 70x PE. Ben Graham's formula pegs that as requiring a 30% annualized growth rate over the next 7-10 years.
- It's in the middle of a strong commodities market. How will earnings look like during a bad market?

There is a reason Ben Graham, and Warren Buffett have a policy against paying over 25x earnings. No future stream of earnings is predictable enough to pay such a high price.

[yellowbastard]

I know very little about this. Can someone explain to me...

1. How people are able to buy IPO's like this? (is it as easy as going on etrade and putting in an order or is it more difficult?)

2. and why it would be a bad idea to buy the IPO because of pure speculation of the price rapidly increasing? (as it almost certainly will)

[BeL0wMe]

So Desert Cat, I'd assume you're saying to stay away from NYMEX, I still think it's worth a buy even at such a high price. I'm willing to speculate about 3g's on this stock, after some of the initial IPO owners, sell off their stock, and get a free double on their investment.

What price do you think I should wait for this stock to drop? And will it drop? IICR most stocks tend to dip a bit after the IPO for the reasoning I just stated, is it going to be the case with this one too? This is my first foray into equities, so some advice will be appreciated.

[dazraf69]

[ QUOTE ]
So Desert Cat, I'd assume you're saying to stay away from NYMEX, I still think it's worth a buy even at such a high price. I'm willing to speculate about 3g's on this stock, after some of the initial IPO owners, sell off their stock, and get a free double on their investment.

What price do you think I should wait for this stock to drop? And will it drop? IICR most stocks tend to dip a bit after the IPO for the reasoning I just stated, is it going to be the case with this one too? This is my first foray into equities, so some advice will be appreciated.

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If you look at some of the other exchanges, they never went down. They all for the most part have done very very well.

[DesertCat]

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If you look at some of the other exchanges, they never went down. They all for the most part have done very very well.

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Were they trading in the rarified air of 70x earnings?