2012 IPO Performance – The Best and The Worst

May 23, 2012

2012 has not seen a slew of IPOs from U.S. based companies. But there are some of interest. China leads the pack on the overall amount and with the list of losers much longer than the list of winners, one has to wonder if the pipeline is soon to dry up.

Clearly Facebok (FB) is on the losers list and Yelp is Read more

TDI Episode 68: Crocs Makes a Great Toilet Seat

August 3, 2008

Guest: Michael Santoli, Barron’s Editor brings some important issues to the front regarding how the media deals with information. Andrew asks about the slant of “big media” toward the bullish argument (or at least they appear to frown on the short and negative ideas). We also discuss the summer market doldrums and ideas to fix for the Auto Industry.

Andrew suggests that there is going to be a HUGE fallout and uprising against mainstream media, and…

Michael Santoli is an Associate Editor for Barron’s, The Dow Jones Business and Financial Weekly.  He writes the “Streetwise” column, offering a forward-looking take on the financial markets, illuminating market trends and identifying investment opportunities.  Mr. Santoli is a regular on-air contributor to several cable and broadcast networks.

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Michael Santoli

Prior to assuming his current position in November 2006, Mr. Santoli had been a senior editor for Barron’s since May 2002, writing “The Trader” column, which covered the stock market and investment trends.  Previously he had been mutual funds editor for the magazine since March 2000, when he wrote the “Fund of Information” column, edited the quarterly mutual-fund pullout sections and wrote cover stories for the magazine.

In August 1993, Mr. Santoli joined Dow Jones & Company as a reporter for the Dow Jones News Service and covered the securities industry.  He moved to Barron’s in February 1997 as a staff writer and wrote the “Commodities Corner.”  In 1998, he began writing the “Striking Price” column, covering the options markets.

Before joining Dow Jones, he worked in New York as a reporter/editor for Investment Dealers’ Digest from June 1992 through early August 1993.

Mr. Santoli has received two Dow Jones Newswires Awards for distinguished real-time journalism.  In 1995, he was a member of a team honored for a series of stories on the demise of D. Blech & Co., and in 1996, he and a colleague received an award for their coverage of the securities industry.

Born in Manhasset, N.Y., Mr. Santoli received a bachelor’s degree in history from Wesleyan University in Middletown, Conn.

Stocks discussed: Crocs (Crox), General Motors, (GM), Merrill Lynch (MER), Ford (F), Apple (AAPL)

ZachZone Stocks: China Distance Education Holdings Ltd. (DL), Incyte Corporation (INCY), China Mass Media Intl Adv Corp. (ADR) (CMM), Rhino Resource Partners, L.P. (RNO), Rackspace, Inc. (RAX)

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The VISA IPO Paradox: IPO or Bailout?

March 19, 2008

The VISA (V) IPO is coming and it is going to be BIG. A few days ago, I speculated here that the IPO may be pushed back as the markets were in no mood for an IPO even as few have been brought to market of late. It was, and is, not the most opportune time as investor’s are frazzled and institutions are disquiet during what is shaping up to be a historic and cataclysmic economic event born out of our general debauched view of leverage. (Barry Ritholtz: thanks for the Thesaurus idea- I hope I didn’t embarrass myself!)

So, what does that mean for Visa? If you look at the proceed distribution, according to Dealbook, it is rather interesting to note that $1.25 billion goes to:

Even so, the offering will generate a windfall for Visa’s thousands of member banks, which own the company. JPMorgan Chase is expected to reap about $1.25 billion, while Bank of America, National City, Citigroup, U.S. Bancorp and Wells Fargo are likely to receive several hundred million dollars each.

Wall Street firms, in the meantime, stand to collect upward of $500 million in underwriting fees from the sale.

At the same time over 75% of the recent IPOs that had been scheduled have been postponed or cancelled as the market is not capable of capitalizing new issues when it it is so close to margin calls. VISA’s get-it-to-market-and-fast attitude for their IPO is a flagrant and obvious bailout for a few of the institutional beneficiaries. Time is the ultimate enemy in this mêlée against insolvency. The money is needed and it is needed NOW!

So, the VISA IPO is a GO!; no matter how much better it would have priced if times were different. I think that with the potential for insolvency increasing, postponing could be a prove disastrous for one or two of the member banks desperately needing a fast infusion of cash to continue business as “usual.”

(V) (BAC) (NCC) (JPM) (C) (USB) (WFC)

Disclosure: Clients of Horowitz & Company clients hold positions of BAC as of the date of publish.

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