A Google-Eyed Market

[Francisco Monjardino]

Mais um interessante artigo do Jim Puplava, datado de dia 31 de Janeiro.


- http://www.financialsense.com/Market/puplava/2005/0131.html

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Introdução:

" Google-Eyed Market

Speculation is back, day trading is on the rise, and margin debt is increasing. After taking a shellacking in the markets between 2000-2002 investors are showing a penchant for highfliers again. One only has to look at the recent batch of IPO's to see a familiar pattern. Risk taking is back in vogue. Evidence of risk can be seen everywhere. It can be seen in narrowing credit spreads between junk debt and Treasury's or in the yields offered on emerging market debt. It is visible in P/E multiples on tech and Internet stocks and the returns on IPO's. The average IPO rose 11% in the first day of trading last year. While the markets eagerly awaited the arrival of Google it underperformed its peers. From its initial public offering Google shares soared by 126%. As good as those returns sound they were dwarfed by the returns from Chinese online game maker Shanda Interactive which closed out the year with a 286.4% gain. The IPO market is hot again and experts expect it to remain hot this year. The once shy and shaken investor is back in the game again, looking to make a fast buck.

While nobody is saying last year's market is reminiscent of the heady days of the late 90's, there are similar characteristics. The percentage of unprofitable companies coming to market is increasing. Close to 40% of the companies going public last year didn't make a profit. That is up from 2001 and 2002. This year that percentage is expected to increase. According to one investment banker, "The ducks are quacking again so we need to feed them." The backlog of companies coming to market in the past few years were concentrated in energy and real estate which were profitable. On the docket last year and this year are more healthcare and technology companies which are losing money."



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Boa leitura,