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If you couldn't get a piece of the largest IPO in history a couple of weeks ago, you were far from alone.
I think the Alibaba Group Holding Ltd. (NYSE: BABA) initial public offering will go down as the greatest wealth opportunity of a generation – but only about 4% of the $25 billion worth of stock went to individual investors like you.
As alluring as Alibaba and the white-hot IPO market can be, it's not a place to play unless you have the "connections" needed to access the best deals – or have a special "angle" to play.
I can't help you with the connections. But I can give you that special angle.
And that angle will give you access to the profits rolling out of Alibaba and the IPO market – but at a much lower level of risk.
So today I'm going to show you a far better way to gain access to Alibaba's huge profit stream at a nearly 50% discount from the stock's current price – and at a much lower level of risk.
And I think you'll beat the overall market by some 80% over the next two years…
The Lifeblood of Silicon Valley
As a tech insider and someone who's watched and profited from IPOs for years, I know that Silicon Valley runs on IPOs. The promise of buckets of IPO cash is why venture capitalists back promising tech companies in the first place.
Not only that, but a healthy IPO market is good for stocks in general.
Bull markets like the one we're in run on fresh cash flowing in. And there's nothing quite like an IPO to keep investors buying stocks.
The good news here is the IPO market right now is the healthiest it's been in years.
According to Dealogic, the Alibaba IPO brought the value of deals so far this year to $69 billion. That's up 11.2% from the same period last year and puts it on pace to be the best year for IPOs in a decade.
In other words, Alibaba had a successful IPO in a great climate for new issues – and all that bodes well for the market as a whole.
But for retail investors, Alibaba represented three negatives.
About the Author
Michael A. Robinson is a 35-year Silicon Valley veteran and one of the top technology financial analysts working today. He regularly delivers winning trade recommendations to the Members of his monthly tech investing newsletter, Nova-X Report, and small-cap tech service, Radical Technology Profits. In the past two years alone, his subscribers have seen over 100 double- and triple-digit gains from his recommendations.
As a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs and high-profile industry insiders. In fact, he was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon. And he was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
In addition to being a regular guest and panelist on CNBC and Fox Business Network, Michael is also a Pulitzer Prize-nominated writer and reporter. His first book, "Overdrawn: The Bailout of American Savings" warned people about the coming financial collapse - years before "bailout" became a household word.
You can follow Michael's tech insight and product updates for free with his Strategic Tech Investor newsletter.
Michael, one of MoneyMap advisories sent out just before the Alibaba IPO indicated a way to play the IPO was to invest in Softbank, which owned a portion of Alibaba (17% as I recall) and should jump about 149% after the IPO. I picked up some of Softbank, but it hasn’t moved since the IPO. Would you have any idea what has happened?
James Clark