1:45pm (EST)
We mentioned a few weeks ago that Twitter’s Initial Public Offering (IPO) was coming and it appears to be this week rather than the targeted date of November 17.
The stock is expected to begin trading on the New York Stock Exchange (NYSE) on Thursday, and will roll with the ticker symbol TWTR.
We were hoping the the company would keep its original price range of $17-$20 as we wanted to get our Weekly Wrap subscribers in under $20 but we are now having second thoughts as Twitter’s IPO is now expected to fetch between $23-$25 after the company raised the offering price.
They now plan to sell 70 million shares that would raise $1.7 billion but that could be closer to $2 billion if the over-allotments are exercised.
There will be roughly 550 million shares outstanding after the offering and at a price in the mid-$20’s it would give Twitter an initial market cap of over $13 billion.
Of course, investors still have Facebook’s (FB, $48.88, down $0.87) IPO debacle from a year ago to remind them not to get greedy but that was the problem.
A lot of “investors” want to get in-and-out of an IPO with a first day gain of over 100% without doing their homework but the patient investors who waited for the dust to settle in Facebook have done well if they bought under $40, $30, or under $20.
Twitter’s IPO is suppose to be “controlled” to avoid the mishaps and over expectations that came with Facebook’s rollout but that might not happen.
We may have to wait a quarter or two before trying to establish a position in Twitter but the good news is that options on the stock should begin to trade over the next few weeks or in December and that could offer an even better opportunity to make some money.
We will bring you more oft the story as it develops but get ready for some action in December.
As far as the market, today’s session has played out much like the past two where trading has been flat to mixed and within a tight range. The action could prelude another super Tuesday if the current pattern continues to play out.
The Dow is down 5 points to 15,610 while the S&P 500 is higher by 2 points to 1,764. The Nasdaq is up 5 points to 3,926 and the Russell 2000 is jumping 9 points to 1,104 – a bullish sign.
We have a lot to cover with our current trades as we have 2 more triple-digit winners on our hands. We also have a New Trade! Subscribers, check the Members Area for the details and we will be back in the AM with a full report.
