When the company makes the initial public offering (IPO) the prices of stocks in the first days are usually more volatile in average, than for the established business. In the book The Intelligent Investor, B. Graham even recommends never to accept a risk of buying the stocks during the first period.
However, the choice, whether to invest or not, is an investor's decision, and in case he is well acquainted with the current state of affairs of the business and is confident in future prospects of the company, one may accept this risk for a potentially high income in the future.
The question is, how to estimate, whether the price of the stocks, offered before the IPO is a reasonable one, or overestimated? Whether it would be more sensible to buy the stocks before the IPO, or during some time, when the price, being overestimated, or due to some uncertainty on the market drops slightly?
I know, that there is no general working recipe, as the market is unpredictable to a certain extent even for professionals, but what would more sensible to do in some averaged case?