Special IPO Edition!
My take is pretty straight forward:
1) Why go public? ‘Cause you need the money!
It is the reason for Wall Street’s existence — bringing capital to entrepreneurs, new firms and fresh ideas. In 2010, 154 IPOs were priced raising $38 billion dollars (144%/76% increases respectively).
2) Is it worth it? Often, there are no alternatives. Look at firms that have done well as public companies — like Chipotle or Google or Tesla — they think its worth it
3) Funding New Ideas: When you have an outside Investors or VC fund your firm, they have an eye towards an exit — that means sale or IPO.
4) Who should not be public? Small companies, sub-$250m market cap and less than $100m in sales (I am on the boards of two of them) should not be public. (Its something I have been agitating for internally).
5) SEC Investigations? PUH-leeze. That is not why Twitter hasn’t gone public yet, and anyone who says otherwise is a jackass.
UPDATE: Video posted here
All eyes are on Saudi Arabia right now, especially on Wall Street, as an upcoming planned protest there could send shockwaves through global markets. Here are some items for investors to be aware of: 1. There are actually two planned protests being organized on Facebook in Saudi Arabia – one on March 11th followed by…Read More
David Rosenberg of Gluskin Sheff calls the current doubling in the spot price of oil a “game changer: “There have been only five times in the past 70 years when this has happened within a two-year time frame: January 1974, November 1979, September 1990, June 2000, and August 2005. And now, December 2010. . ….Read More
As a democratic revolution led by tech-empowered young people sweeps the Arab world, Wadah Khanfar, the head of Al Jazeera, shares a profoundly optimistic view of what’s happening in Egypt, Tunisia, Libya and beyond — at this powerful moment when people realized they could step out of their houses and ask for change.
About Wadah Khanfar
As Director General of Al Jazeera, the only international TV network based in the developing world, Wadah Khanfar works to bring rare liberties like information, transparency and dissenting voices. Full bio
BLS: Nonfarm payroll employment increased by 192,000 in February, and the unemployment rate was little changed at 8.9 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in manufacturing, construction, professional and business services, health care, and transportation and warehousing. The number of unemployed persons (13.7 million) and the unemployment rate (8.9%)…Read More
Via Wordspy, we learn today’s new phrase: precariat n. People whose lives are precarious because they have little or no job security. [Precarious + proletariat.] Example Citations: This is echoed by the handful of other academics who are dipping their toes into the murky psychological depths where liberal values and baser instincts collide. The economist…Read More
Feb Payrolls rose by 192k, 4k less than expected but private sector job gains totaled 222k, 22k above forecasts. To smooth the influence of bad weather in Jan, payrolls averaged 128k over the two months and 145k in the private sector. It’s certainly an improvement but still lackluster at this stage of an economic rebound….Read More
Traveling in California today we witnessed $4.00 gas and prompted us to think what makes up the price. We constructed the following chart from a U.S. Energy Information Agency (E.I.A.) time series. Notice in May 2001 the crude component of a $1.71 gallon of gas was 35 percent of the price versus 76 percent during the…Read More
By the numbers: Consensus for monthly BLS payroll data are gains in the 200k level (survey forecasts 100,000 to 297,000). This follows an increase of 36,000 workers in January, with many blaming winter storms for depressing hiring. Expectations are for Unemployment to tick up from 9% to to 9.1% as more job seekers enter the…Read More
What a schmuck: The worst central banker in the history of planet earth has a something new to say: U.S. government “activism” — fiscal stimulus, housing subsidies and new regulations — is holding back the economic recovery. No word on how his central bank activism — ultra-low rates, radical deregulation, and nonfeasance of his regulatory…Read More