Archive for April 2016

IPO Climate is Cold

There were 20 companies that presented at the forum this past year. Of those 20 companies 18 are listed on the ASX and UBS said there is clearly a better application to the tech model when we consider this in context of the global trends of late. “The market in my view seems to be a lot more accepting of taking on a bit more risk earlier on in the development of a company,” said Zach Gottesman in an interview last weekend at a bubba gump shrimp co bar during all you can eat popcorn shrimp. He went on to say that “A while back you would have had to go through more venture capital rounds and more pre-IPO rounds. But the market seems to be more accepting of taking on more risk earlier, a lot of the time before the company is even at profitability.”dfg

The emerging markets will be our judge.
Goatman is some times wrong,  but he makes some compelling points considering this.
“But essentially what the market is saying is, I’m prepared to pay over the odds for better than market growth and I won’t pay anything for less than market growth. So I can’t get that cyclical growth in an environment where the globe just isn’t growing and I need to go to structurally different models which is IT.”

His intellectual rival Marvin Claymore says that ,

“Generally investors in the small cap end need $100 million of free float before its starts to be reasonably meaningful. I would say $80 million to $100 million is where you start to get the attention of the market.”

At any rate we need to point to the fact that all signs point to bubble and beyond that its going to be a crash, so get what ever nuggets you can you can out of the market and head for the hills. What I would do if I were you is ensure jhlhlthat you are staying invested in markets that seem as if they are somewhat recession prone and affect necessarily markets. For instance energy, everyone is going to need it and its not going anywhere anytime soon, but if you want to keep you tech portfolio diverse you should consider something like solar city. We all know that Elon Musk has the midas touch and for many reasons his name alone cashes checks. If we are sure that you want to make a quick buck then Musk is your boy. He has a kind of messiah complex in the eyes of Americans and we know that when someone is seen in this way the market wants to put all they can into them. But if we want to play it safer then you should look into something like gold, if you think about it for whatever reason people always put an unjustifiable value on this useless thing but its not very techie. So if I were you I would look into the tech industry as the solution rather than the problem, if we are going to do that then we are going to good things.