The market feigned weakness late in the day, then steam rolled higher to conclude a very impressive week of gains for stocks. Crude oil was higher by 4%, capping off a crazed week where the majority of stocks in the index soared by 30%. This contrasts mightily with the overall glum outlook for the industry, currently plagued by job losses and looming insolvency due to over leveraged balance sheets. The one silver lining, post commodity stock melt up, is the recent buoyancy may very well pave the way for massive share offerings–in order to help companies manage their debt. I can guarantee you that investment bankers will be working around the clock this weekend to price deals, in order to buy these companies time for the underlying commodities to rebound further.
If you’re buying into energy related stocks whose balance sheets are impaired, you run a grave risk of being caught flat footed by immensely dilutive share offerings.
Having said that, in some cases, share prices might continue higher following large secondaries, depending on the mood of the market. In some instances, the market will sell the stock because of dilution. In other cases, the stock will rally, in celebration of the fact that the company might live to fight another day.
With the IPO pipeline sealed shut, advisory accounts hammered over the past 3 months, you can bet your bottom dollar the investment banks will try their worst to price secondaries now, in order to ‘save’ companies and generate fees.
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Natural gas is low, a buy? Yes?
absolutely
You should have already done your homework on the space to understand who the survivors and winners will be……the commodity ETTF and triple leveraged products we leave to the gamblers… I prefer to take on best in class producers….
What’s your YTD% at Fly?
up 1%
China Congress is going to break the bulls hearts just like G20 did. ALL of this stupid rally came from Draghi’s we will do everything and the rumors of China Stimulus projects coming from the Meeting this weekend. Not 2009, we are in a Bear Market….all blood next week when China and ECB don’t come thru.
ur obsessed with asians. didn’t north korea bother you this time? oh. no one else either.
North Korea doesn’t import that much, lol. My entire Thesis of this Bubble started when China Govt started importing HUGE amounts of Copper and other commodities (which didn’t add up to their physical demand )during 2009 New Years Period. It was a start of a bubble and I was going to follow it…so started the journey. Google Translator has given me such a knowledge of a part of the world I had no clue of before…but, lol, I am probably on EVERY FBI watch sites due to all the strange websites in China and Iran that I go to, lol, ouch.
So bold if I may say so, Tn. Strong, and, bold, yougoGirl
lol, True That.
market likes to change its mind on the next trading day after a labor report. but this market has a mind of its own. so…whatever.
North Korea, in case anyone wonders what blahblahblah is talking about
North Korea Makes Nuclear Threat in Anti-U.S. Propaganda Push
http://www.nbcnews.com/news/north-korea/north-korea-makes-nuclear-threat-anti-u-s-propaganda-push-n531646
Yes, I guess not many people noticed yet. While we are all focused on ISIS, this Kim Jong Un guy sure sounds like he is more dangerous. We should be thinking about what to do about him instead.
Nkorea has -ALWAYS- been on the geopolitical list of trigger points. this is nothing new
They can only reach Japan, so nobody cares.
so called testfires from Vandenberg recently, being couched as actual messages (sending a message) instead of test fires, yeah, they do care
showtime- a westbound rocket launch from Vandenberg looks like a roman candle from LA, and it appears to hover in the sky for a long time. Seeing it for the first time can be unnerving.
Trump is why. They tend to make these statements when they feel they are being ignored. Trump and the “debate” were the lead story everywhere when they released this.
I read this as a subtle trade suggestion from The Fly.
Should mention Exodus could be used to produce a list of candidates based on the criteria.
greed feeds on greed, greed also feeds on desperation, think that what we’re talkin’ about… here Herr Fly… not a renewed OPtimism optimistically optimistic optimism-enthusaism joy. nope no and no
So what does one do after covering a short now? Hangout in non divi FANG? Press biotech? The ark?
* short FANG: walking tenderly onto the ark
For the sweet baby Jesus. Ban frog. Kill the omen before Satan comes and annihilates the fucking capitalist that line these hallowed halls. lol Had to man. That punk kid jackass could be the omen.
Satan would never use an animal to push an agenda focusing on politics to sway any human being. Certainly not a frog. No disrespect frog.
It was a fucking metaphor man. You obviously do not know the stock gods. Keep up the ignorance. See you at the pawn shop.
I have been doing a lot of digging around and one
of the interesting things about this market is that the only comparison
everyone is making is to 2008-2009 because many of the younger
people have not seen any other recession. Explaining to them that
that was a “once in a lifetime” situation falls on deaf ears. But the
valuation metrics they are using to tell us when stocks are cheap are
from that era.
Mary Lisanti
Yep, as soupbone questioned above….this will combine with the crude to power a technological infrastructure build like never seen before on planet earth.
A king,
This is an interesting take on sentiment. It sounds like you believe that markets are reflecting an irrational fear that every drop is the beginning of another ’08. But what do you think are the odds that the REAL recency bias is that events like ’08 are once in a lifetime events? In other words; maybe the real bias here is that everyone thinks ’08 won’t happen again because it already did and historically events like that are rare. I have been wondering if the end of a major debt super cycle means we will likely see many versions of ’08 and probably increasingly frequent as the cycle matures.
I mean, what was actually fixed after ’08?. Banks are better capitalized, but only against the more pedestrian components of their balance sheets. Derivative exposure is still a big risk…..even after assuming solvent counter parties and only assuming net exposure.
focusing on one bubble and thinking that your studies are complete/sufficient is a mistake…much can be learned from past bubbles…like the Nikkei bubble… wink wink…
the Japan NIKKEI 225 Stock Market Index reached an all time high of 38915.87 in December of 1989 and a record low of 85.25 in July of 1950.
If my arguments aren’t powerful, then don’t be swayed. I don’t know what all this stuff with baby Jesus and Satan is about. Nor the ridiculous streams of insults in response to simple expressions of my opinions. I can only guess that perhaps you folks belong to some religion or political tribe or family where everyone feels obligated to agree with one another all the time.
I think I will stop trying to make heads or tails out of this, and just go back to ignoring insults again, as there is certainly nothing constructive to be gained from reading or responding to them.
Look dude obviously this is not all that serious. But for the love anything you deem holy. Anything. Have one original thought. Black cats and ladders until you post anything that is not regurgitated. You are a bad tell bro.
As assumed crickets. frog is a disease that can infect this house. Punk kid with a vagina. Make that what you will.
sonlifetv.com
How Corporate America Invented Christian America
Inside one reverend’s big business-backed 1940s crusade to make the country conservative again.
http://www.politico.com/magazine/story/2015/04/corporate-america-invented-religious-right-conservative-roosevelt-princeton-117030
And this is why I called it the Shanghai Copper Bubble since 2009, China is now holding more copper then LME and the China Congress is not announcing any MAJOR stimulus. Yes, I still have to deal with Draghi, but it was never the EU that was creating the global bubble, only the ECB helped fuel it. http://www.bloomberg.com/news/articles/2016-03-04/copper-stockpiles-in-china-surge-to-record-as-metal-flows-east
so if you did a massive devaluation of the YUAN … would copper be a hedge? Poor mans golden hedge 🙂