Have you heard about the latest IPO craze that everyone is talking about on Wall Street? It’s the Blackstone IPO. I’m not too familiar with Blackstone, but I know they are an equity firm that specializes in buying out corporatoins down on their luck, hedge funds, real estate, and other investments. The latest is that a Chinese investment firm is putting around 3 billion dollars into the IPO, so I imagine this stock is going to quite a bit of activity its first week on the New York Stock Exchange. The question is, should you invest in it?
All I can tell you is that I don’t invest in single stocks, and following IPO’s is pretty risky. You can make some good quick profits off of IPO’s, but you need enough money to play with for it to be worth it. You also need to know when to sell the stock, because it’s easy for these IPO’s to have a huge boom in the beginning and then level out to fair playing field for stock value.
The firm is an interesting one. It’s a limited-partnership, so they get around paying corporate taxes at 35%, and they have done some other creative things to evade taxes and certain regulatory procedures.