Browsing All posts tagged under »Initial public offering«

Thoughts on the Glencore IPO

April 18, 2011


“Glencore is a leading integrated producer and marketer of commodities. The Company is active in every step of the supply chain in metals and minerals, energy and agricultural products. Glencore produces, sources, processes, refines, transports, stores, finances and supplies commodities used by the world’s industries.”  In the year-ending December 2010 the company earned net income of $3.8bn on […]

Williams F1 – The Worst IPO?

February 23, 2011


The Formula One team Williams is currently preparing to IPO on the Frankfurt Stock Exchange in early March, and the prospectus can be downloaded from the company’s website.  While some people might be excited about the prospect of investing in one of the most successful teams in one of the world’s most lucrative sports, I […]

The Perils of Growth Investing (Part 1)

December 15, 2010


This is the first in what I expect could eventually be a long series of examples of how investing in “growth” business at high valuations can result in a serious loss of capital.  The chart below shows the share price of Betfair, a company which operates a peer-to-peer online gambling exchange.  The company sold off […]

Why I Don’t Invest In Initial Public Offerings

September 28, 2010


No event in financial markets seems to get investors (institutional and retail), stockbrokers, bankers and journalists excited in the same way as a new initial public offering (“IPO”). The announcement of a new IPO is always greeted by a frenzy of analysis and commentary, with the prospectus being poured-over in detail and much being discussed […]

Why Equity Market Performance is Independent of Economic Growth

September 7, 2010


During my regular intake of business and finance news stories, I have recently come across many pieces that talk about the increased likelihood of a double-dip recession (which may well be correct) and thereafter use this evidence as a reason to be bearish on stocks (with which I disagree). Just last week, the editor of […]

The Tale of Britannia Bulk

August 3, 2010


While I am unaware of the record shortest time from initial public offering to bankruptcy, Britannia Bulk must certainly be in contention for this not-so-prestigious honour. The company raised $116m to float on the NYSE on 18th June 2008, but by 31st October 2008 had filed for administration in the UK courts. Britannia Bulk was […]