In this segment from MarketFoolery, host Chris Hill and senior analyst Matt Argersinger reflect on a trend recently pointed out by the The New York Times.
The number of so-called “megarounds” — private funding rounds to the tune of $100 million or more — is shooting higher at a torrid pace. Is this ability to dodge the public markets a good thing for companies or retail investors?
A full transcript follows the video.
This video was recorded on Aug. 15, 2018.
Chris Hill: Shout-out to Sam Muffley, longtime listener in Queens, New York. Sent a story through Twitter. Interesting story in The New York Times about the private markets. They’re getting a little frothy. The benchmark of, boy, if you could raise $100 million in the private markets, that was seen as such a big deal. Now, it’s kind of commonplace.
Matt Argersinger: Yeah. I think Sam is definitely onto something. I read the article, and I was astounded by the number. You mentioned the $100 million deal, which they call “megarounds” in venture capital speak. There were 273 of those last year. This year, through the first seven months, there have already been 268. 268 companies have raised $100 million rounds in the private markets. That’s astounding to me. And it does beg the question, if there’s that much money slugging around in the private markets, why would I ever go public? If there’s that much money available to me? It’s astounding.
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Advisors’ Opinion:
- [By Shane Hupp]
Shares of Callon Petroleum (NYSE:CPE) traded down 5% during mid-day trading on Thursday . The stock traded as low as $12.47 and last traded at $12.48. 6,420,719 shares traded hands during mid-day trading, an increase of 45% from the average session volume of 4,431,217 shares. The stock had previously closed at $13.14.
- [By Joseph Griffin]
Here are some of the media headlines that may have effected Accern’s analysis:
Get Callon Petroleum alerts:
Callon Petroleum (CPE) Expected to Post Earnings of $0.22 Per Share (americanbankingnews.com) Callon Petroleum (CPE) Given Consensus Recommendation of “Buy” by Brokerages (americanbankingnews.com) Basic Materials Stock Recap: Callon Petroleum Company (CPE) (stockdigest.info) Head-To-Head Analysis: Callon Petroleum (CPE) vs. CNOOC (CEO) (americanbankingnews.com) Callon Petroleum (CPE) Short Interest Update (americanbankingnews.com)
CPE has been the subject of a number of recent research reports. ValuEngine lowered Callon Petroleum from a “hold” rating to a “sell” rating in a report on Wednesday, March 7th. B. Riley set a $12.00 target price on Callon Petroleum and gave the company a “hold” rating in a report on Friday, March 9th. Piper Jaffray Companies reiterated a “buy” rating and issued a $16.00 target price on shares of Callon Petroleum in a report on Thursday, March 15th. Jefferies Financial Group set a $18.00 target price on Callon Petroleum and gave the company a “buy” rating in a report on Wednesday, March 14th. Finally, Stifel Nicolaus set a $20.00 target price on Callon Petroleum and gave the company a “buy” rating in a report on Wednesday, March 28th. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and fourteen have issued a buy rating to the company’s stock. The company currently has an average rating of “Buy” and an average price target of $15.88.
- [By Lisa Levin]
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Callon Petroleum Company (NYSE: CPE) shares fell 4.7 percent to $11.90 in pre-market trading after the company reported pricing of common - [By Joseph Griffin]
Get a free copy of the Zacks research report on Callon Petroleum (CPE)
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Advisors’ Opinion:
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In the Lightning Round, Cramer was bullish on Goldman Sachs (GS) , Berkshire Hathaway (BRK.B) , Ecolab (ECL) , PTC (PTC) , Arista Networks (ANET) , U.S. Concrete (USCR) and Masco (MAS) .
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- [By Stephan Byrd]
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- [By Stephan Byrd]
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Advisors’ Opinion:
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