IPO Action Track

IPO Action Track - North Fork Cascade Canyon - Grand Teton National Park
IPO Action Track

An IPO action track is a proprietary trading model of the IPO Financial Network Corporation (IPOfn) that gives short-term recommendations on initial public offerings (IPO). The only companies taken into account are those which have gone public within the last 6 months, and whose IPOs were accomplished by the top 5% of the underwriters.

By paying a subscription rate, the customer receives daily faxed reports containing, for instance, new buy and sell signals, triggered buy and sell signals and canceled buy and sell signals, average volume, IPO size and volume factors, and analyst recommendations. The trading model takes no fundamental information into consideration.

Fundamental information would include, for instance, income statement data such as earnings, balance sheet data such as book value of asset and liabilities, and cash flow statement data such as cash flows from operating activities, if available in the case of an IPO.

The basic methodology used for the IPO action track is called technical analysis, in contrast to the fundamental analysis that applies fundamental information. Technical analysis studies past financial market data and identifies nonrandom price patterns to forecast price trends (Kirkpatrick and Dahlquist, 2006).

Thus, the technically based program of the IPOfn corporation only requires price activities of the considered stocks and attempts to identify short-term trends IPOfn also offers faxed reports for secondaries referred to as secondary action track.