All Financial Wisdom

IPO Investing: From GDDY to FIT

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Yesterday, I set a limit order to sell my shares of GoDaddy (GDDY) to have create gain of 13.4%.  It was triggered right before the closing bell as shown below.

GDDYAs you can see, I probably would have missed this little peak if I had not placed that limit order.  I would probably be selling need that close price or lower, hurting my gains.

My next IPO investing pick is Fitbit (FIT).  They are the creators of health and fitness products that allow users to track their exercise or movements.  They are a part of the “Internet of things” movement by placing more and more sensors within everyday objects to analyze behaviors.  The data that these devices bring in are useful for the user to modify behavior or to provide positive reinforcement.  As a company, I believe they would be a great candidate of being bought by Under Armour (UA) or Nike (NKE) to expand their health device and equipment reach.  It would make sense that they would attempt the sale after the IPO sizzles.

I have set a limit order to buy 11 shares at $30.00 this morning.  We will see if it will execute over the next couple days.  My “Plan A” exit strategy is to sell depending on a merger or acquisition.  This would be relatively an active strategy.  However, depending on the rumors, the stock price might increase for my benefit (My “Plan B”).  After 1 month, I would sell my holdings for 10% or more.  After 3 months, I would sell my holdings for 10-15% or more.

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