Ever modest, its author Julia Bradshaw put its popularity down to the fact that it was accompanied by a picture of an especially cute puppy - the British, after all, love their pets a great deal. The reality is that, in the wake of the Royal Mail offer last year, there is a great deal of public interest in new issues, and especially those rare beasts like Pets at Home which include a retail offer. More importantly, the attractions of buying shares in Pets at Home are clear, as Julia’s excellent analysis concluded. We do spend an awful lot of money on our furry friends - even the two rabbits we keep cost us a small fortune, with Pets at Home one of the main beneficiaries of our indulgence.
Whatever the attractions, I would nevertheless encourage readers to treat IPOs in the same way they would treat any other share purchase: make sure you understand the business - and are confident in its prospects - and that the price is right. In the excitement of a stock market flotation, and the fear of missing out, it’s all too easy to get carried away and overpay - a similar effect to that which takes place at auctions. That’s why I wouldn’t be chasing Poundland as it soars upwards, but would take another look at Pets at Home which has had a more muted start to public life.
While I’m on the subject of over-excitement, I’d like to quickly turn to our tips, and some of the incredible price moves we have seen after publication. A reader called me last week to complain that he had been unable to trade one of our recommendations anywhere near the price quoted in the magazine, and not for the first time. I am obviously troubled if our readership are struggling to take advantage of the ideas we research each week, and we have tried (unsuccessfully) to alter our schedules to mitigate the influence we have on small company share prices.
However, I’d once again encourage readers not to get sucked into panic buying for fear of missing out. Sure, there are some people who may be making a quick buck by seemingly trading tips without even having read anything more than the ticker - worryingly. But we don't consider our suggestions as short-term trading ideas, and would always encourage our readers to consider our ideas the starting point for further research of their own. And if one good opportunity passes you by, then so be it - because there will be others that present themselves later. Investing is, after all, a long game, and one in which patience is often rewarded.
