Comments on: Starent Networks Corp (STAR)

By: Zach

Zach — Thu, 02 Aug 2007 01:40:40 +0000

Thanks for the encouragement Fred, You might be interested in a service I subscribe to. Its called Morningnotes and they usually do a good review of IPO’s and secondaries before the issue takes place. Ask for Ben Holmes and tell him I sent you.

As for criteria, the first is that I want to see it trading above the issue price. If it cant hold that level, it will likely have overhead resistance as people wait for the stock to get back to where they bought it and kick it out there.

Next, I like to see good fundamentals. They may or may not be profitable yet, but the company needs to be growing sales and have a clear picture of when and how it will turn a profit.

After that I look at technicals and like to see volume drying up on a pullback hopefully soon after a successful launch. After the initial hype has worn off watch for the beginning of a positive move on a lift in volume and you’re often in for a great ride.

Hope this helps. Stay in touch!

By: Fred Blackes

Fred Blackes — Thu, 02 Aug 2007 00:39:00 +0000

Absolutely love your analysis on recent IPOs. I trade only IPOs. What criteria do you look for when taking an initial position or adding an existing one.
Thanks, Fantastic Analysis!

By: boris

boris — Wed, 25 Jul 2007 14:45:20 +0000

ATVI ….. good point on the rich pe ratio. the one thing that might overcome that valuation issue is the new-ish best seller Gutar Hero series, and this is the controvesy, does this title brand have sustainable popularity? McKee on Fast Money CNBC 8pm (use DVR) says ATVI is best positioned 3rd party title publisher. also likes Nintendo. but i agree with you in general.

By: Zach

Zach — Wed, 25 Jul 2007 02:49:33 +0000

You may be right about CMG… I’m concerned with it breaking through the 50 day on such strong volume. Definitely glad I had the calls today and wish I had sold 85’s or even 80’s instead of the 90’s. it will be interesting to see what kind of bounce the overall market gets tomorrow after such a negative day.

ATVI, I’m not real impressed with its quarterly sales and earnings stats. Obviously the environment is shaping up better for them, but they will have to execute very well to justify the multiple o the stock right now.

By: boris

boris — Tue, 24 Jul 2007 19:52:36 +0000

i maximized cmg position in Tuesday afternoon selloff. average price of inventory is 82.90.

By: boris

boris — Tue, 24 Jul 2007 18:27:29 +0000

chipotles is having trouble holding 85 and then 84. the 7 day dip expands to $8. $92 > $84. you should consider buying back your calls.

By: boris

boris — Tue, 24 Jul 2007 17:54:26 +0000

i will look at this one. any thoughts on activision. either fundamental or techniqual? the JUNE 2007 monthly NDP video game industry sales data on hardware and software went to press yesterday at 810PM. and ATVI had more marketshare gains. the tip is $2+ down towards $18 and might have potential to $20-ish. activision has some starter bounce action to mid 18s today by midday.