View Full Version : Morningstar IPO

04-25-2005, 02:49 PM
I use Sharebuilder as one of my brokers and they sent me the below email today...

ShareBuilder Securities Corporation is pleased to offer you the opportunity to participate in the allocation process for the Initial Public Offering (IPO) below.

The Issuer: Morningstar Inc
Proposed Symbol: MORN
Exchange: NASDAQ
Total Shares Offered: 7,612,500 shares of common stock
Price Range: $16.00 - $19.00 per share (minimum order of $250.00)
Expected Pricing Date: Week of 05/02/05

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I've never participated in an IPO before and it sounds exciting. Am I somehow "special" for receiving this offer? Generally speaking, is it worth taking part in an IPO simply because it is an IPO, or should the stock be valued/scrutinized just as any other equity?

Edit: here's the info from the underwriter. (http://www.wrhambrecht.com/ind/auctions/openipo/morn/index.html) It appears to be an IPO in the form of a dutch auction in which everyone has equal access. I'm not "special" after all. /images/graemlins/frown.gif

04-26-2005, 03:29 PM
I got the same thing.

04-26-2005, 06:52 PM
I'd buy some. Back in the IPO craze I used to get IPOs all the time because online brokers were trying to gain customers by allocating shares to the common public. However...times have changed and the fact that they are offering you shares probably means there is low demand for the stock which is not good. If they don't have a lock up period proably worth a shot at gettin a quick profit.