IPO Evaluation


From: Fred Schiff <f.schiff@ieee.org>
Subject: IPO Evaluation
Date: Fri, 22 Aug 1997 22:30:43 -0400 (EDT)

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A company which supports a hobby of mine is going to try to raise money
through an IPO.  They are thinking about raising $50,000, with shares
costing $100 each.  They are obviously going out to people who support
this hobby or who have been customers of them in the past.  And for $50,000
(even with $100 share price) they are not going to attract much Wall Street
action.

My question is how do I evaluate an IPO?  I will be receiving the paper work
soon and want to know what I will be looking at.  This is to support a hobby,
so I can hardly see it as an investment.  There is little risk of them 
skipping with the money, but there is a risk of losing all of my investment.
Also, its unlikely ever to appreciate.  How exactly do I evaluate this?

(Its a publishing venture basically).


Fred
Fred Schiff (f.schiff@ieee.org)

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