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An IPO You Can't Afford to Pass Up

It's flu season, and the publicity surrounding the H1N1 (swine) flu has people more nervous than usual this time of year. And managers are worried about the impact this could have on employees and their businesses.

Sick workers can disrupt business operations and result in lost work days and, thus, lower productivity. This is especially troubling given the tough economic times and the already reduced workforce at most companies due to layoffs.

Enter LogMeIn Inc. (LOGM). This company provides on-demand, remote-connectivity solutions to businesses and consumers -- in fact, it connects more than 70 million devices worldwide.

Users rely on LogMeIn solutions for remote connectivity and support solutions. And the company also offers on-demand remote access software to your desktop from your iPhone. Pretty cool stuff!

I'm not the only one interested in this recent IPO. LOGM is getting a nice round of applause from the folks following the venture capital world, and the stock recently received five upgrades:

"Overweight" by JPMorgan
"Overweight" by Barclays Capital
"Overweight" by Thomas Weisel
"Overweight" by Piper Jaffray
"Buy" by Canaccord Adams

LOGM's IPO Story
LogMeIn Inc. went public on June 30, at $16 a share, and the stock immediately shot up to nearly $21. That's a pretty nice move, but when it comes to trading IPOs, the approach I like best is trading the secondary reaction versus the initial "out-of-the-gate" reaction. By trading the secondary reaction, you prevent whipsaw from buying high out of the gate, and then selling low out of fear.

Also, it is typically the secondary move that is the meatiest part of the move, and you also have the benefit of using the charts to guide you through the overall supply and demand picture. Monitoring the supply and demand via the charts will assure that you don't end up holding the bag when the party is over, because, as we all know, one day the punch bowl will run dry.

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This page contains a single entry from the blog posted on October 15, 2009 5:15 AM.

The previous post in this blog was Triple Your Money in These Trades.

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