Tom Taulli, author of "Investing in IPOs" and founder of DealProfiles.com, told CNBC’s “Power Lunch” that individual investors should sit out Blackstone Group’s planned IPO.
Most individual investors can’t get shares at the offering price and therefore must pay a hefty premium to buy in the aftermarket.
“I would not be buying,” Taulli said Thursday. “I suspect it will be at a premium. There’s a similar company called Fortress that went up a lot on the first day...I expect a lot of volatility. Unless you’re a big trader, I would not be buying.”
Russell Lundberg, chief investment officer at Barrett Capital Management, said individual investors should consider the tax implications before buying Blackstone’s shares.