Up date michael kors handbags sale australia expirations

In the quest for trading edges, the expiration of lock up dates is an event with obvious potential.The lock up period is the period after an ipo during which most existing shareholders are contractually prohibited from selling shares.Since there is an obvious incentive to sell when the market allows for an expensive price and also most ipos trade up from their offering price in the michael kors handbags outlet short term, it's not surprising that a lot of insiders are anxious to sell as soon as they are allowed.

An increase in supply with the expiration of the lock up period, hitting on about the same demand, should naturally produce lower prices.

Academic research there is a lot of academic research on this phenomenon.Naturally, it confirms what we expected.There are excess returns to be had around the expiration date, namely, the stocks tend to drop around that date.

I'll name a cheap michael kors few academic studies for further reading:

"The expiration of ipo share lockups,"Laura casares field and gordon hanka"The ipo lock up period:Implications for market efficiency and downward sloping demand curves,"Eli ofek and matthew richardson"Can liquidity shifts explain the lockup expiration effect in stock returns? "Chandrasekhar krishnamurti, avanidhar subrahmanyam and tiong yang thong"Disclosure strategies and ipo lockup expiration returns,"Yonca ertimur, ewa sletten and jayanthi sunder what is most relevant for us is that these studies broadly confirm that stocks with lock up periods that expire tend to drop.Also, the drop is around the expiration date, but not necessarily after it.Many times the effect happens slightly before the expiration date, along the lines seen in the following chart:

A classic examplePandora(Nyse )Offered the classic lockup expiration example late last year.Having listed the ipo on june 15, 2011, it had the lock up expiration on december 12. The chart below exemplifies the entireProcess, with a huge drop into lock up expiration, and an increase in volume on the day it expires.It's important to notice that the fall happens into(And before)The date in question.

Upcoming opportunities since we've already established the validity of this particular edge, how can we find specific opportunities to trade one?Luckily, edgar online can help us here, as it carries a page detailing the ipo lockup expiration dates by month.

Here are a few examples of well known recent ipos that trade at very high valuations and whose lock ups are about to expire.These will probably be good opportunities to short in the month prior to the indicated lock up expiration dates:

Ubiquiti networks(Nasdaq:Ubnt), expires on April 11, 2012 Groupon(Nasdaq:Grpn), expires on May 2, 2012Jive Software(Nasdaq:Jive), expires on June 11, 2012 MichaelKors Holdings(Nyse:Kors), expires on June 12, 2012 Zynga(Nasdaq:Znga), expires on June 13, 2012 Fusion io(Nyse:Fio), expires on July 9, 2012 Conclusion Trading the short side of soon to be expired lock up dates presents an excess return according to many academic studies as well as empirical evidence.It might pay for the traders to keep an eye on future lock up expirations, with a view toward trading these equities from the short side, up to a month before the indicated expiration dates.Five such opportunities are listed in the article, marrying approaching expiration dates with high valuations.

Related Articles:

Linked Articles

http://gitto.eklablog.fr/louis-vuitton-handbags-sale-of-the-class-a114702230

http://shiki.xobler.com/2015/02/16/louis-vuitton-outlet-ukthese-five

http://xanxus.rus.tl/blog_michael-kors-bags-uk-be-removed.html

Posted by: shiki at 01:02 AM | No Comments | Add Comment
Post contains 549 words, total size 5 kb.