IPO WARS: Varchild vs. Motley Fool vs. Jim Cramer
Stock Investors seek Stocks that outperform the S&P 500. But, how can you find such a stock when it is brand new? On IPO day, September 25th, 2009 there were 3 entities analyzing 3 different IPOs.
JIM CRAMER on Mad Money told investors on September 24th, 2009 to buy Select Med (SEM).
MOTLEY FOOL protested in a sense by saying that everyone is overlooking Vitacost (VITC) in favor of other more popular choices.
VARCHILD2008 said those 2 bums couldn't find a good IPO even if Warren Buffet sent it to them by way of postcard. (well actually....all he said was to buy GAME and stay away from VITC and SEM).
So? In terms of peformance against the S&P 500 to date let's take a look at the 3 stocks!
(VITC) -11.25 against the S&P 500
(SEM) -4.01 against the S&P 500
(GAME) -1.59 against the S&P 500
Neither of these 3 stocks is outperforming the S&P 500 and by that standard alone neither of these three stocks are technically...geek speakily....Lingo-esque-ily "Good Investments."
However.... GAME has the wind at their backs with now multiple days trading up ever since the C.E.O's announcement that they expect video games in China to produce 18% average growth annually for the next 5 years and for Shanda Games to do even better than that. They also mentioned how little of their business is overseas and their interest for expanding into the United State's Online Gaming Market.
This announcement comes on the heels of (CYOU) ChangYou's announcement of DRAGON OATH online video game in open beta test in the United States. (Varchild2008 gives this a score of 7.5 out of 10 which for a first attempt is pretty good. The game needs a Spell Checker.).
Anyhow.... All of this craziness was already factored into my head when deciding to throw my own cash to buy 155 shares of GAME and 30 shares of CYOU. It is obvious these game company's are being relatively shielded in CHINA with their CHINA markets..... and That they will be coming to the United States to try and rip away World of Warcraft Gamers to their side....
I think they will find some success in the United States.... But I also think it will be very, very, challenging... I would give (GAME) the better shrugs chance of being successful in America more than (CYOU) at this time.... But then again GAME has yet to release a product of any kind, BETA or otherwise in the U.S.
Let's just say I am not entirely impressed with Dragon Oath.... but I still continue to play it and give it a chance to grow on me.
BOTTOM LINE: GAME is outperforming the other 2 IPO stocks right now..... They have the wind at their backs.... I say this one starts outperforming the S&P 500 in 2010 and beyond.