For me, finding the best investment in 2009 lies directly with IPOs, or Initial Public Offerings.
IPOs have always been my choice of investments because of their extremely hot and volatile nature, its no wonder why I think they are the best investment in 2009.
Personally, I've made a killing with IPOs.
Since March of this year, I have already banked over 400% in the IPO investment in 2009.
I'll show you how in this article.
So you may be wondering, how do I find IPOs? That is the first question I always get and the answer is, by visiting the SEC (Security and Exchange Commission) website.
They have a section called the EDGAR site where you can view all filings by all public companies.
The IPO document we want to look for is called the S-1 or Prospectus.
The prospectus contains all the fundamental data an IPO investor needs to make a very informed decision.
In this document, you'll find essential IPO data like, underwriters, (these are the managers of the IPO) you'll view the use of proceeds statement, which shows what the company will do from the money raised by the offering and lastly, risk factors, only to name a few.
The best IPO investment in 2009 has the following qualities: (based off how I have made all my profits) The best IPO investment in 2009 has solid underwriters.
There are good, bad and in between underwriters and I have always gone with a select group because of their unbelievable track record.
That group consists of Deutsche Bank, Credit Suisse and Goldman Sachs.
The use of proceeds should look like this: "We will use the proceeds from this IPO for research and development and possible business acquisitions.
" This tells me that the company is serious about growth.
Lastly, risk factors are very important as well.
They are what they are; they'll say why investing in the IPO may not be a good idea, for instance I've seen a statement or two that read, "We may never be profitable.
" This is a warning sign and when its present, run for the hills.
IPOs in 2009 are starting to really ramp up, especially after the major cool down we saw with the recession.
Now is one of the best times to be investing in IPOs as the market warms for most profitability.