Make Millions Trading IPOs

Gain 59%, 50% and 34% in three months or less trading IPOs.
Does this sound too good to be true? Well, if I was writing a headline to some bogus guru seminar, this is what I would start with. It probably caught someone’s attention!

The gains above are real for the small group of IPOs I have been covering heavily since June 13, 2006, starting with Fresh IPO Ideas.

I am not an investing guru but I do provide high quality equity research and stock education that offers everyone a chance to develop trading skills and the confidence to make money. The stock group below has given us an 80% success rate with the average gain above 38% in a few short months. More importantly, take a look at the changes in their institutional sponsorship over the past three months and you will see a direct correlation between that and their share prices.

Three Month Results:

• JASO, 59.63% gain
• SNCR, 50.65% gain
• GTLS, 34.75% gain
• DVR, 9.15% gain
• SMOD, 49.41% loss

Aside from SMOD, the other IPOs have performed phenomenally over the past three months with JASO and SNCR leading the way. Below is a comparison of the institutional numbers reported in June and what is showing on my screen today.

JASO – JA Solar Holdings, Co. Ltd. – $39.19 from $24.55
Institutional Analysis:
Total Held by Institutions: 125 from 87
Money Market: 75 from 68
Mutual Fund: 49 from 18
Other: 1 from 1
Shares Held: 15.90 mil from 15.16 mil
Shares Bought: 5.56 mil from 13.51 mil
Shares Sold: 4.87 mil from 0.19 mil
Value of Shares Bought: $180.79 mil from $314.6 mil
Value of Shares Sold: $156 mil from $4.58 mil

**JASO has gained more than 59% while institutional sponsorship has increased 44%. The number of shares held has only increased by 5% with institutions buying less than one million shares more than they were selling. I would prefer to see more institutional sponsorship as the price of the stock moves higher. JASO must penetrate the levels from July and go on to set new all-time highs.

SNCR – Synchronoss Technologies, Inc. – $42.00 from $27.88
Institutional Analysis:
Total Held by Institutions: 202 from 156
Money Market: 86 from 70
Mutual Fund: 111 from 82
Other: 5 from 4
Shares Held: 26.59 mil from 16.86 mil
Shares Bought: 14.20 mil from 8.94 mil
Shares Sold: 4.28 mil from 5.56 mil
Value of Shares Bought: $531.25 mil from $220.27 mil
Value of Shares Sold: $160.3 mil from $136.99 mil

**SNCR has gained more than 50% while institutional sponsorship has increased 29%. Even better, the number of shares held has increased by 58% with institutions buying 10 million more shares than they were selling (3.5-to-1 ratio). It all makes complete sense as the stock has soared to new highs. This will stay on my list long term.

GTLS – Chart Industries Inc. – $31.06 from $23.05
Institutional Analysis:
Total Held by Institutions: 187 from 121
Money Market: 97 from 59
Mutual Fund: 85 from 59
Other: 5 from 3
Shares Held: 31.8mil from 15.73 mil
Shares Bought: 18.75mil from 2.72 mil
Shares Sold: 2.51 mil from 2.53 mil
Value of Shares Bought: $486.9 mil from $59.52 mil
Value of Shares Sold: $65.2 mil from $55.31 mil

**GTLS has gained almost 35% while institutional sponsorship has increased 55%. The most attractive number of the group is the jump in shares held for GTLS which increased by 102%. Institutions bought 16 million more shares than they were selling for an 8-to-1 ratio. The value of shares bought closed just shy of $500 million while the value of shares sold was only $65 million. The stock looks good long term.

DVR – Cal Dive Intl., Inc. – $7.24 from $15.52
Institutional Analysis:
Total Held by Institutions: 188 from 110
Money Market: 101 from 59
Mutual Fund: 82 from 46
Other: 5 from 5
Shares Held: 35.40 mil from 25.59 mil
Shares Bought: 14.45 mil from 12.89 mil
Shares Sold: 3.95 mil from 4.17 mil
Value of Shares Bought: $209.81 mil from $195.31 mil
Value of Shares Sold: $57.39 mil from $63.25 mil

**DVR has gone on a slight roller coaster ride with a deep cup shaped pattern that has given us a 9% gain to date. Institutional sponsorship has increased 71% with the number of shares bought beating the number of shares sold by a 3.6-to-1 ratio. Volume need to increase on the right side of this deep base for it to look like an ideal pattern setup. Long term, I still like the stock.

SMOD – SMART Modular Technologies Inc. – $14.31
Institutional Analysis:
Total Held by Institutions: 200 from 149
Money Market: 107 from 82
Mutual Fund: 82 from 62
Other: 11 from 5
Shares Held: 47.59 mil from 42.33 mil
Shares Bought: 12.46 mil from 18.82 mil
Shares Sold: 7.26 mil from 2.17 mil
Value of Shares Bought: $141.56 mil $269.36 mil
Value of Shares Sold: $82.57 mil from $31.08 mil

**SMOD has lost more than 49% of its value since I covered it back in June. Institutional sponsorship did in fact increase by 34% but the number of shares bought versus the number of shares sold was not great. In fact, the number of shares bough the previous period was more than 18 million, about 51% greater than his period. The stock started to show problems after I covered it with multiple reversals and then a violation of the 50-d moving average, the first major trend line and then the 200-d moving average. The stock is no longer a watch candidate. This is the last of SMOD for now!