IPO Secondaries

I love IPOs.  At least 60-70% of my trading gains are in stocks that have IPOd this year.  But here's a secret: Every IPO that does well will price a secondary.  It just how these things work.  The longer you stay with an IPO after the lockout, the more of a game of chicken this becomes.  Here was a comment I made on the Stockbee site last week:

Scot1and1:53 PM Nov 18th 2016

A lot of the more recent IPOs never got to make their initial run because the market sold off. Think, COUP, NTNX, TTD, ASIX. They have been impressive coming out of the bottoms. I think the IPOs that came out with ACIA, TWLO -- Like PI and AIRG for example are going to be riskier because we will start seeing secondary's like PI had last night. (AIRG - has high risk for a secondary)

I was right.   AIRG announced a secondary tonight and is gapping down.  I saved myself a losses in all these stocks,  Although I took had positions early in all of them, I was out well before they announced secondaries just by being familiar of where the stock was in its life cycle.