Second Thoughts

Secondary offerings have not been faring well recently. Petrobras is now trading below the offering price as is M&T Bank. I cannot decide if this is bullish or bearish? What could be bullish about it? Less secondary offerings and IPOs.

5 comments:

PJ said...

It's worse than that, a lot of offerings have tried to come to market and been withdrawn or delayed. It seems a lot of people are trying to cash out, and there's not much appetite.

Tsachy Mishal said...

The offerings are supply and if you are bearish you want as much supply as possible to come to market.

Tsachy Mishal said...

I think part of the problem is that so many issues in the past few years have been from the financials and they are severely lagging the market. The buyers of new issues seem to have gone on strike. That might be bad for the sellers but it might be good for the overall market as less supply hits.

nicasurfer said...

One day of put buying can insure the whole the market. We have had three days of close to extreme volume for calls.

Chaos! said...

I'm not sure where you're seeing "close to extreme" volume in calls. The CBOE equity option volume doesn't show anything like that. Over time I've found this measure the best. In fact put buying picks up quickly with any market dip. Its message to me is that we're headed higher. I'm flat but eager to go short, but not til the numbers line up. I'm not sure we're even close.