As another quiet period ends, this IPO could deliver a triple digit gain

Research on This Recent IPO Could Lead to a Rally in the Stock
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Research on This Recent IPO Could Lead to a Rally in the Stock

IPOs tend to be exciting and then it seems that Wall Street analysts ignore the stock. There is a reason for that.

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Stocks trading under $10 typically have no analysts' coverage – never mind a "buy" rating – leaving investors to do the homework for themselves. However, a select few boast of favorable coverage from analysts, which can direct share-price movements.

Here's 3 of those stocks

Under securities law, there are two-time windows commonly referred to as "quiet periods" during an IPO's history. The first is the period of time following the filing of the company's S-1 but before SEC staff declare the registration statement effective.

During this time, issuers, company insiders, analysts, and other parties are legally restricted in their ability to discuss or promote the upcoming IPO.

The other "quiet period" refers to a period of 10 calendar days following an IPO's first day of public trading. During this time, insiders and any underwriters involved in the IPO are restricted from issuing any earnings forecasts or research reports for the company.

When the quiet period is over, generally the underwriters will initiate research coverage on the firm. That could spark new excitement in the issue.

That quiet period recently expired for a hot IPO, and as we explain in our latest article, this could set up a triple digit trading opportunity. We highlight the opportunity and share the math that shows how we identified the trade's potential gain using real market prices based on recent data.

We have all of the details and the specific trade in our latest free educational article that is available right here.

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