Cabeza Howe

Investors Vote 'No Confidence' in TCM's Management

Nobody really has set a standard on the issuing P/E. But your range was about right due to common practice. The recent bubble has pushed the average P/E to the 30 mark (among small and medium sized IPOs). There were reports of average of 28.98 for new issues June thru October. First day activity often tripled the price pushing P/E to 90 or 100. When the bubble still holds, there is certainly hot money to be made. However, have you heard about the "overpackaging" practices where small companies with lousy financials get packaged to the rosy profit and P/E at IPO? And things are sure to unwind when the bubble bursts.