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The Oreninc Index five-week moving average reached a 22-week high, climbing for the third straight week and for the fifth time in six weeks. In addition, 45 offerings were announced last week, the most since February. It certainly appears the summer lull is coming to an end. The major remaining question: will the Fall and Winter markets come back with gusto or will 2013 end as it began?
Coming off the heels of one of its best weeks YTD, the Oreninc Index dropped off significantly for the week ending August 15, 2013. The week was highlighted by more overall deals, but with only 25% of the total money announced. Underscoring the drop were zero bought deals and only two brokered deals announced, off from 28-week highs for both last week. On a positive note, the five-week moving average was up slightly, indicating that the market as a whole is trending in the right direction as we move out of summer.
This is off-topic from metals/mining, but the more I look at the issues facing the Western world, the more I see a complete destruction of demand for labor....
Everything we do every day just compounds the problem of technology killing jobs, jobs that are never coming back. The world is changing, and for some things it is great; I would put a plug for copper in here, but let’s focus on what has changed.
Everyone is looking for solutions to this crisis.
One of the popular ones is the concept of a rollback; theoretically, if you roll back a company you end up with less shares and more value per share. So if you had 100m share at 5 cents per share outstanding and you did a 10x roll back, you end up with 10m shares at 50 cents per share. Do that a couple of times with a $2-4m raise each time and the original shareholders own 10% of the company (maybe). Rollbacks rarely work and the reason is simple: usually, they are used as a bandaid over a heart that needs a quad bypass.
The Oreninc Index exploded to its highest level since January for the week ending August 8, 2013. Two $80m+ brokered offerings led the way, marking the first time more than one $50m+ brokered offering has occurred in a single week in 21 weeks. Broker activity was up all around, with brokered vs. total deals over 93%, its highest level since 2011. While the financing market may still be on shaky ground, this week’s heights along with a 14-week high for the five-week moving average give us optimism that we are moving away from 2013’s summer financing lull.
The Oreninc Index continued its turbulent summer, falling to its lowest level in over a year for the week ending August 1, 2013. Total amount opened for the week fell 80% to $22.1 million. In addition to the lack of overall fundraising, broker activity was down sharply with only one deal for $4 million. This serves as a sobering reminder of the current volatility in the space. Next week should improve marginally as we inch closer to the historically more active fall months.
Which are you: a Mack truck, a deer, or a planner? Figure it out.
The Oreninc Index rose to its highest level in twelve weeks for the week ending July 25, 2013. The brokered vs. total dollars announced was the highest since January, mostly on the back of Argent Energy Trust’s opening for $75m. Even with the main reason behind the jump being due to one deal, the fact that a company is trying to raise that much through a bought deal shows a small sign of improvement in the financing wasteland that has been Summer 2013.
We had a real estate bubble, driven by cheap money and easy lending, and we all know how it ended in the US. The solution to get us out of the...Imagine you are in a world where you are judged on how pretty your partner is, but you are blind and you have no idea what she looks like. She will tell you she is pretty, but you cannot trust her as she might be biased.
To do a good job, you will establish what pretty is, redefine it based on a set of guidelines, and then go look for a partner that meets those guidelines. But you are still blind, so you have to trust someone to guide you.
