Looking for McGrath IPO investors, page-6

Hi Michael

Benjamin Graham wrote in his book The Intelligent Investor that "our one recommendation is that all investors should be wary of new issues"

Two reasons:

1. "New issues have special salesmanship behind them". A good example is Dick Smith's prospectus. Note the pretty pictures and bullsht phrases such as "leading retailer", "superior omni-channel offer" and "robust growth strategy". All supported by highly paid professional advisers.

2. "Most new issues are sold under favorable market conditions - which means favorable for the seller."