https://twitter.com/OccupyWisdom/status/1004522695860674560
1999 – Why profits don’t matter for IPOs
The Wall Street Journal has a heads-up article in Monday’s paper that says the percentage of companies going public this year that aren’t yet profitable is higher than at any time since the dot-com bubble. (The article, here, is available for free.) The paper notes that there are differences from seven years ago, primarily the number (there are fewer) and diversity (more industries are represented) of IPOs. Still, the large presence of unprofitable companies asking investors to take a chance on them is rightly seen as a warning sign.
REVERSION TO THE MEAN IS A FORCE OF NATURE
Leveraged loans margins on track to hit new pre-crisis lows: premium paid on top-rated leveraged loans above the London interbank offered rate has pushed to below 190 basis points, the lowest levels since 2007 https://t.co/04Ul82kdDY pic.twitter.com/AM1CV75GAA
— Trevor Noren (@trevornoren) June 6, 2018