Share to Twitter Share to Linkedin The term “Initial Public Offering” (IPO) is the process of a private company coming to the public market for the first time and offering shares in the business. It’s the ultimate accolade of a small company that can work its way up from nothing to offer ownership to a wider market whilst raising money in the process. Traditionally, these are exciting new companies to look for and analyze. Depending on the size of the offering, the fanfare around it can be deafening and can make investors excited. This occasionally forces those same investors into purchasing shares in a company that they know very little about and haven’t really carried out full due diligence on. Sometimes this turns out to be a huge mistake . According to Statista, the equity returns of IPOs were twice as large as those from NASDAQ investments or even SPAC mergers in 2020, but returns were negative in 2021. However, the share of companies that are … [Read more...] about IPO’s Are Dead. New Companies Via Spinoff Offer Extreme Value in Bear Markets. Here Are 3 Worth Watching.
New companies on the stock market
Share to Twitter Share to Linkedin He may be new at the job, but FedEx FDX CEO Raj Subramaniam should know better. With 2nd quarter 2022 sales up 5.5% over the same quarter in 2021, the declines in total earnings (-15%) and earnings per share (-18.6%) mean there is a serious company issue - not the global recession excuse he offered Jim Cramer on CNBC . Here are the CEO's comments contained in the company's press release : “Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S. We are swiftly addressing these headwinds, but given the speed at which conditions shifted, first quarter results are below our expectations,” said Raj Subramaniam, FedEx Corporation president and chief executive officer. “While this performance is disappointing, we are aggressively accelerating cost reduction efforts and evaluating additional measures to enhance productivity, reduce variable … [Read more...] about No – FedEx’s Problems Do Not Signal A Recession (Or A Bear Stock Market)
Shares of Warren Buffet-backed Snowflake more than doubled during its IPO on September 16, with the company raising nearly $3.4 billion during its listing on the New York Stock Exchange. Shares of the cloud-based data warehouse firm started trading at $245, even going up to $300, which is 150 percent above its IPO price of $120, CNN Business reported. The California-based company began trading on the NYSE with the tickr "SNOW", selling 28 million shares. Snowflake's shares closed at $245, valuing it at over $70 billion. Before the IPO, Buffett's Berkshire Hathaway and Salesforce Ventures had each agreed to purchase $250 million worth of Snowflake stock. Close "This is just one day. Things will normalize and shake out and become more settled as time moves on," Snowflake Chief Executive Officer Frank Slootman said, as quoted by Reuters. Prior to Snowflake, only Royalty Pharma and Warner Music Group have had bigger stock market debuts this year. Snowflake … [Read more...] about Warren Buffett-backed Snowflake’s value doubles on stock market debut
Share to Twitter Share to Linkedin Billionaire business magnate Donald Trump pulled off a stunning upset early Wednesday morning to become the next President of the United States, picking up key battleground states to beat Democratic rival Hillary Clinton. The victory took investors around the world by surprise and sent markets into a tailspin. Overnight, Dow futures fell as much as 800 points and the S&P 500 tumbled 5%, tripping up circuit breakers meant to halt trading in periods of extreme swings. Markets also tumbled overseas as investors digested what a President Trump means for trade and global growth. Japan's Nikkei stock exchange finished 5.4% lower. European stocks also dropped initially, but by the end of the day the Stoxx Europe 600 had added 1.5%. (Photo credit: Mandel Ngan/AFP/Getty Images) "Most investors had calculated that Clinton would win, and markets are now recalibrating," said Richard Dunbar, senior investment … [Read more...] about Stock Market Slingshots Higher After Trump Victory Sparked Overnight Plunge
Share to Twitter Share to Linkedin Stubbornly high inflation, a possible recession, rising interest rates, corporate budget cuts and headcount reduction are all likely to continue, as Federal Reserve Bank Chair Jerome Powell wages war against inflation. Until Powell gets a grip on inflation, Americans are looking at a long, cold winter of falling stock and home prices, a litany of layoff announcements and a contracting economy. This week’s unexpectedly high inflation report offered a stark reminder of how volatile and fragile the United States economy has become. On Tuesday, reacting to the news of the rise in the consumer price index, the stock market plummeted more than 1,200 points. The S&P 500, a bellwether of large corporations, plunged over 4% and the Nasdaq, primarily composed of tech companies, dropped 5%. This may serve as a harbinger of what’s to come. The S&P is down about 14% this year and there is fear that stocks, along with … [Read more...] about Get Ready For A Winter Of Discontent With Layoffs, High Inflation And A Plunging Stock Market
Shares of state-run National Thermal Power Corporation ( NTPC ) gained 1.5 percent in early trade on September 9 and the stock was among the top gainers on National Stock Exchange, after the company announced that it has inked an agreement with the Indian Army to supply renewable energy. According to agencies, the Army’s Western Command has signed a long-term agreement with NTPC to draw 25 MW of solar power directly from the national solar grid of the country for the next 27 years. “This is the first agreement by Indian Armed Forces for sourcing power from renewable energy sources,” said NTPC in a Twitter post. The scrip traded around Rs 169 a piece on the NSE at 10 am, close to its 52-week high of Rs 170, hit on September 7. Read our live blog for all the market action According to a statement issued by the Western Command Headquarters in Chandimandir, where the MoU was inked, the new move will decarbonize upto 38 percent of the energy portfolio of Western … [Read more...] about NTPC gains after company inks agreement with Indian Army to supply renewable energy
1. A lower $130 crude oil price halved Dow futures gains Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, New York, U.S., March 3, 2022. The U.S. stock futures market cut in half the declines that had been seen earlier in the week. This saw the Dow futures decline by over 500 points at premarket lows. The price of American oil also fell from Sunday’s highs, after the price briefly reached over $130 a barrel. According to a Russian statement, the country would cease attacking four Ukrainian cities, including the city of Kyiv, to allow civilians to flee. Ukraine has accused Moscow of trying to manipulate the cease-fire by allowing only civilians to evacuate to Russia and Belarus instead of allowing civilians from all of Ukraine to leave. In the coming week, the Dow Jones Industrial Average, S&P 500 and Nasdaq are expected to decline. There was a correction in both the S&P 500 and the Nasdaq. The Nasdaq was less than 3 percentage points … [Read more...] about 5 Major Things to know before Monday’s Stock Market Open
Share to Twitter Share to Linkedin [Note: Starbucks SBUX ’ fiscal year 2021 ended October 3, 2021] Starbucks’s stock (NASDAQ NDAQ : SBUX), the world’s leading roaster, marketer, and retailer of specialty coffee, declined by 4% in the last five trading days (one week). Similarly, the broader S&P500 index also declined by 4% over the same period. There is a slowdown in demand and rising costs are significantly affecting Starbucks’ profits. It is possible that these headwinds won’t persist over the long term, and business returns to normal as inflation gradually subsides. However, the effects of unionization may create long-term costs for the organization. It’s still too early to tell how the unionization efforts will affect the bottom line since they are relatively new. There are more than 15,000 Starbucks stores in the U.S., so unionization is viable in many of them. Starbucks announced a reinvention plan last week to tackle unionization … [Read more...] about What’s Happening With Starbucks Stock?
Share to Twitter Share to Linkedin Thanks to Fed interest rate increases , the stock market is likely to keep going down for the next few years. But some individual stocks are bucking that depressing trend. Such rare companies lead an industry where strong demand exceeds supply — resulting in expectations-beating growth that seems likely to continue into the future. One company that fits the bill is Charlotte, NC-based Albemarle whose stock price has gone up 21% in the last year as the price of lithium, which accounts for much of its revenue, has increased 220%. That eye-popping price increase helped Albemarle to grow rapidly in the June-ending quarter and to boost its guidance — both exceeding investor expectations. With lithium demand likely to exceed supply, Albemarle will be able to keep raising prices and to generate positive cash flow thanks to its low costs — sending its stock price higher. (I have no financial interest in the … [Read more...] about With Lithium Up 220%, Buy Market Leader Albemarle
Share to Twitter Share to Linkedin Two new stocks made September’s Exec Comp Aligned with ROIC Model Portfolio, available to members as of September 15, 2022. Recap From August’s Picks The Exec Comp Aligned with ROIC Model Portfolio (-8.9%) underperformed the S&P 500 (-8.1%) from August 12, 2022 through September 13, 2022. The best performing stock in the portfolio was up 7%. Overall, six out of the 15 Exec Comp Aligned with ROIC stocks outperformed the S&P 500 from August 12, 2022 through September 13, 2022. This Model Portfolio only includes stocks that earn an attractive or very attractive rating and align executive compensation with improving ROIC. I think this combination provides a uniquely well-screened list of long ideas because return on invested capital (ROIC) is the primary driver of shareholder value creation. New Feature Stock for September: The Home Depot HD The Home Depot, Inc. (HD) is the featured stock in … [Read more...] about A Quality Executive Company’s Plan Lowers The Risk Of Investing In The Home Depot