There is an SEC law the prohibits analyst coverage of new issues for at least thirty days. After these thirty days the analyst community can upgrade and downgrade the issues, this is where you and I can profit. Let’s look at how this scenario could have helped us in Fortress Investment Group’s situation.

FIG came public on Feb 9th. During this time, it fell from $30.87, first day’s closing price, to about 26.7 on March 20th. On March 21st, Wall Street analysts upgraded FIG to “buy” across the board and we saw the stock pop and close at 28.41, a 6% gain. Had an investor known how Wall Street’s analyst community worked, they would have been able to profit handsomely.

I’m quite sure we will see a similar trade opportunity arise for Blackstone. Even if you haven’t read their SEC filings, you know it has lots of potential growth. Blackstone has had an IRR of 25-30% for about 20 years, gets away w/out paying taxes at 35% for 5 years, and after 30 days of them being public, expect analysts to upgrade ‘BX’ to a “buy”.

Just my two cents.