Struggling IPO market

Just like all markets, the world of IPOs goes through cycles.

When it's in a downturn, as it was in the spring of 1996, deals that are lucky enough to get out are often priced at bargain-basement prices.

That's when the smart investor is looking hardest to jump in.


Take, for instance, the March 1996 debut of Internet auctioneer Onsale, which could barely find any bidders at a lower-than-expected $6 offering price;

the stock was below $5 within weeks. Later in the year, when the market turned around for Internet stocks, Onsale's price surged more than 500%.