New Forum: How to distinguish between a good IPO and bad IPO

Looking at the present trend of stock exchange a lot of companies are going public. but how new investor would distinguish between a good IPO or a bad IPO.
Investing in a weak company can never be fruitful and there is every possibility of the investors being duped off and loose there hard earned money.
One way of distinguish between a good IPO(Initial public offering) and a bad IPO is to get a thorough knowledge of the company which is coming up with it's offering.
It can be done by analysing the last five years (minimum) balancesheets of the company, It's employee strength and the growth trends. The most important point to check is the annual profit of the company.

If you have any other point do leave a comment so that every investor can know about it and their hard earned mony should not be lost!!

So do make this post a lively post by leaving your expert comments.