Wednesday was a very good day for investors who got into the initial public offering of e-business services company Breakaway Solutions (Nasdaq: BWAY) at the IPO price of $14. It was a much different story for many investors who bought in after the stock opened. Shares of Breakaway opened at 61 and climbed as high as 71 before falling hard to close at 42-1/4.
Overall, the stock more than tripled for the day, but it closed nearly 20 points below its opening price. This, again, illustrates the potential dangers of buying an IPO right when it opens.