How to choose an IPO

Good and cheap floats.... you will never get them unless you know the broker or you are a shareholder of the parent company (sometimes you get priority).

I squeezed out some money for Thomson Resources, spun off by MEP and a JV partner. Because I get priority, I decided to buy some. And it is so nice to see a good write up in SMH or AFR or The Australian, indicating that the float will be successful. I hope so!

On the weekend AFR, there is a good article on how to pick a float to buy into. And what to stay away from. I have not joined up with Paterson so I have no special priority for most floats other than when CommSec is involved. Remember Platinum the fund manager? Well, I got priority and sold almost immediately for a nice stag profit because I think lowly of Mr Kerr Nielsen but the market thinks highly of him. Emm.... I was right! I bought because I knew the dynamics of that float would involve institutions buying up after the float to make up their "averages".