IPO Investing: The pipeline is still running dry
Posted August 25, 2008
There may be pressure building. But with investors spooked, chances are the IPO market will remain as dead as Kevin Federlines singing career.
by J. Christoph Amberger
Baltimore — (TFN): Some analysts claim that to the untrained eye the IPO market looks calm. But there are supposedly hidden pressures building up in the new-issues market.
I have to disagree. To the untrained eye, the IPO market looks as dead as the singing career of Kevin Federline.
And after an entire quarter that didn’t see a single IPO, chances are that it stays that way.
Sure, there’s pressure building. There’s a dire need for investment capital. And Wall Street’s investment bankers are increasingly pressed to book profits on deals.
But there’s one ingredient missing: The eager private investor with spending money burning a hole in his pockets. Heck, people are now SELLING companies that see revenues and profit growth!
With investors spooked and institutions now as risk-adverse as a kindergarten principal on an excursion to the paintball club, chances are capital will come from investment funds seeking a home for their commodities cash — or the Chinese trying to add to their proprietary technologies portfolio the honest way.
Unless, of course, Adult Friendfinder goes public. Then all bets are off!
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