| Should i invest in a search engine company that’s in its IPO stage?

Should i invest in a search engine company that’s in its IPO stage?

marlanazakon asked:


The company has no venture capital (which I’m not sure is a good thing or not). It’s requiring a min of 25k to invest…is that normal procedure? I’m buying the shares at $9 per share. The company has already launched in China and has 23 million users. It is set to launch sometime in March. I was told that if I wanted to keep the shares at $9 I would have to invest soon because they would be meeting with “high end” clients next week and the cost of the shares would go up and the min. of 25k would go up to 100k min. Are the chances good since it is a search engine company?

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Comments

2 Responses to “Should i invest in a search engine company that’s in its IPO stage?”

  1. enoriverbend on March 31st, 2009 2:15 pm

    (1) IPOs normally lose money for the small investor.
    (2) There’s a lot of hype around China now and many Chinese companies are overpriced. For internet-related Chinese companies, quadruple that.
    (3) A reasonable person might be concerned about stock market volatility in a country where capricious government actions can sink a market in nothing flat, and where corruption is still so prevalent, and where publicly-held companies are held to much lower transparency requirements than in the US or Europe.
    (4) Your entire description of a “hard sell” by the people involved would make me run like mad in the OPPOSITE direction.

  2. peilthetraveler on March 31st, 2009 7:06 pm

    First this smells like a scam to me. The fact that there is a time limit on when you have to buy, screams scam. If it is legitimate then under rule 144, you cant sell these shares for 1 year. Also if they are legitimate, you must file a notice with the SEC if the sale involves more than 500 shares or the aggregate dollar amount is over 10,000 in a three month period.

    These people always tell you that the price is going to go up “soon” so you better buy now or you will miss out. ALL scammers use this technique because it works so well. I bet they even have the nerve to ask you to western union the money too which is another trademark of scammers. Remember, that just because some guy says he is affiliated with a website, doesnt mean he is. I could tell you I’m with google and i will sell you shares for 100 dollars each and you can resell them tommorrow for 700 each, but it doesnt mean i am with them. I wouldnt risk it, unless you speak chinese and can contact the real internet company. stay away.