Archive for December, 2008
Posted in December 31st, 2008
There will be no tears shed as 2008 is shown the door at midnight tonight. In my 35 years in the financial services business I cannot remember any previous year where there has been such an avalanche of continuous bad financial and economic news. And just when you thought it could not get [...]
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Posted in December 29th, 2008
Deteriorating economic conditions are of great concern to small-business decision makers in the US. They are increasingly worried about the future of the economy and how it affects their organizations; a new Business Journals Network survey shows.
A recent national survey of 1,700 owners, presidents and CEOs of businesses with one to 499 employees [...]
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Posted in December 24th, 2008
Now is probably one of the best times for a company to go public via a reverse merger. Shell prices are depressed so a company can purchase an OTCBB shells at steep discounts. The process is streamlined and allows a company that has already been audited to be public in thirty to sixty [...]
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Posted in December 23rd, 2008
If you are seeking access to capital then 2009 might be the time to consider taking your company public. The valuation of a public company is usually three to four times that of a private company. You can sell stock to potential investors (equity) and give up far less of the company than [...]
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Posted in December 22nd, 2008
Now is the time for companies to revise their business plans for next year. If you plan for the worst-case business scenario you can survive these tough economic times. Your planning should include alternative ways to fund your company over the next two years. The vicious credit crunch will affect all companies [...]
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Posted in December 18th, 2008
Acquire Rather than Expire
So now that I have painted this rather grim picture let me tell you why I think the current market crisis also provides one of the greatest opportunities for emerging growth companies over the two years.
Lets face it. Only the strong will survive over the next two years. With survival [...]
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Posted in December 17th, 2008
Competition of a different Form
Jim Furey of Furey Research Partners, an institutional research boutique that specializes in small-cap strategy, states the following: at recent market lows 59% of the small cap Russell 2000 index stocks were trading below $10 and more than half carried market values below the $250 million level that is commonly described [...]
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Posted in December 16th, 2008
New Competition
Emerging growth companies will also experience competition from all of the public companies whose shares have been decimated by recent market selloff based on fear. Remember, most investors risk their money in new companies because of the huge upside potential. What happens when investors see that same potential in established companies with [...]
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Posted in December 8th, 2008
Recessionary Times
So how will emerging growth companies survive and prosper during this recessionary period? What changes will they need to make to be able to attract capital and grow their business? Credit is hard to come by these days and I expect it will tighten even further. It is time for companies [...]
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Posted in December 5th, 2008
Broker Dealer Review
The tier one broker dealers that once ruled the IPO marketplace have exited, stage left, to a place that will allow them to survive the financial debacle they created. They have reinvented themselves as “banks.” It is interesting to note that they have now moved into an arena that has [...]
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