Skip to content


IPO Filings Surge. Time to Sell?

The AP is carrying a story about a recent surge in IPO filings. This past Friday marked the highest daily number of IPOs filed with the Securities and Exchange Commission in six years, with 10 companies registering to sell their stocks on the U.S. markets (the average number of IPOs filed with the SEC has been 1.3 per day over the past 12 months).

I immediately saw this as a bearish signal. Does that mean I’m selling every stock I own? Certainly not. I will, however, be keeping a much closer eye on how the market behaves in the coming weeks.

One final note: The last time more than 10 IPOs were were filed in a single day was in March 2000 - that, of course, was just prior to the bursting of the tech bubble.

Posted in investing, stocks.

One Response

Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.

Continuing the Discussion

  1. CandidCritic.com » Blog Archive » Time to Ease Back into the Stock Market linked to this post on June 14, 2006

    [...] On May 16 we posted a cautionary note on the stock market.  We took the news that Friday May 12 marked the highest daily number of IPOs filed with the SEC in six years as an indicator that the markets were potentially set for a fall.  Since that post, the Dow, NASDAQ and S&P are down 6.3%, 7.4% and 5.0%, respectively. [...]

Some HTML is OK

(never shared)

or, reply to this post via trackback.