IPO's: Another inefficient market

This post isn't new news, but a reminder that small caps tend to be less efficient because there is not much coverage on these stocks.

IPO's, on the other hand, tend to have coverage relative to their hype. Google had a bunch of analysts immediately. So did Chipotle. But the difference is that there is no easily viewable track record - and that leads to potential gains because market expectations are scattered.

If you have an edge with an IPO, you can score big gains!