Another Great Depression Coming Soon?

Posted by: Leo Kolivakis

Post date: 03/14/2010 - 13:04

Bill Hemling, a widely respected agricultural economist, told the Kansas City Star that “we’re heading for a recession we haven’t seen the likes of since the 1930s.” Let's pray he is is wrong — again.

Preparation for Options Expiration Racketeering Week

Posted by: RobotTrader

Post date: 03/14/2010 - 12:14

Now that we have last Wednesday's the rollovers over with, now it is time to start thinking like a criminal and figure out how Goldman is going to make its $500 million this week by vaporizing 90% of all the potential put/call profit in the current period's open interest.

Will the Real Debt Crisis Please Stand Up?

Posted by: Leo Kolivakis

Post date: 03/12/2010 - 21:32

When you factor in pension obligations, just how bad are the debt profiles of individual countries? Trust me, you don't want to know...

Market Top: AEI Cancels IPO After Drop Of Price Expectations

Submitted by Tyler Durden on 10/30/2009 10:31 -0500

Ah, the dreaded "market conditions" loophole. After several recent IPOs had seen a less than stellar reception by the equity market, banks have decided it is time to pull IPOs entirely and wait for a better window of opportunity. The most recent casualty: energy company AEI. As the AP reports:

AEI, a former Enron entity with energy-infrastructure operations in 19 developing countries, had expected shares to price between $14 and $16 per share. The company was offering 16.7 million shares. Its largest shareholder, Ashmore Funds, planned to sell 33.3 million. Thursday, AEI lowered its expected price to $12 to $13 per share. It raised its offering to 20 million shares, while Ashmore Funds cut its offering to just 1 million shares.

Per the company's disclosure:

"We have decided not to proceed with an initial public offering of our shares at this time due to market conditions."

If market conditions are inhospitable at the S&P at nearly 1,100, one wonders when the next IPO window of opportunity will come. Now that the Fed is liquefying markets much less, and the Treasury has bigger problems (debt ceilings and such) to deal with, it may be the case that just like last summer when in a matter of one week over a dozen coal IPOs were pulled as the energy market broke down, that if you were lucky enough to catch a few greater institutional fools - good for you. And if you did not, you may well be stuck holding on to that paper equity for quite a while longer.

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