BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[The credit market hasn't turned?]]>http://www.bloggingstocks.com/2007/08/17/the-credit-market-hasnt-turned/http://www.bloggingstocks.com/2007/08/17/the-credit-market-hasnt-turned/http://www.bloggingstocks.com/2007/08/17/the-credit-market-hasnt-turned/#commentsFiled under: , ,

According to TheDeal.com, Private Equity Intelligence is arguing that "the conditions for the long-term growth of the buyout industry are still very much in place." PEI is justifying this point of view, it seems, with the amount of capital still being raised by large private equity firms, despite the recent string of unfavorable news for borrowers and potential borrowers.

PEI goes on to argue that private equity funds are going to continue taking in huge sums of money as institutions raise their "target allocations" towards private equity funds -- a seemingly rational assumption.

But there are several problems with this thesis. Most importantly, I'd bet that the target allocations for private equity funds are going to decrease if the funds' returns suffer due to a more difficult borrowing environment. I'd also argue that recent fundraising success by private equity funds doesn't represent the health of the credit market -- I'd bet that many investors are simply chasing incredible past performance at these funds without recognizing that it was much cheaper to finance these transactions just one quarter ago.

While there's plenty of talent in the private equity space, I tend to believe that the difficult credit situation is going to hurt private equity performance over the next few years.

The credit market hasn't turned? originally appeared on BloggingStocks on Fri, 17 Aug 2007 13:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>credit marketCreditMarketPEIprivate equityPrivate Equity IntelligencePrivateEquityPrivateEquityIntelligencetarget allocationsTargetAllocationsthedeal.comFri, 17 Aug 2007 13:00:00 EST<![CDATA[Option update 5-30-07: Cleveland Cliffs, Penn REIT]]>http://www.bloggingstocks.com/2007/05/30/option-update-5-30-07-cleveland-cliffs-penn-reit/http://www.bloggingstocks.com/2007/05/30/option-update-5-30-07-cleveland-cliffs-penn-reit/http://www.bloggingstocks.com/2007/05/30/option-update-5-30-07-cleveland-cliffs-penn-reit/#commentsFiled under: , ,

Cleveland Cliffs (NYSE: CLF) -- volatility suggests Risk on renewed Speculation; CLF at record. CLF, a producer of iron ore pellets, is recently up $2.38 to $80.26. CLF has been frequently mentioned as an M&A target. CLF has a market cap of $3.3 billion. CLF call option volume of 2,960 contracts compares to put volume of 783 contracts. CLF June option implied volatility of 49 is above its 26-week average of 37 according to Track Data, suggesting larger price fluctuations.

Pennsylvania REIT (NYSE: PEI) -- elevated implied volatility confirms buyout Speculation. PEI, with an investment focus on retail shopping malls and power and strip centers located in the Mid-Atlantic region of the U.S., is recently up $1.79 to $45.82. Take-over speculation is circulating on PEI this morning. PEI has a market cap of $1.66 billion with long term debt of $1.9 billion. PEI June option implied volatility of 39 is above its 22-week average of 20 according to Track Data, suggesting larger risk.

Option volume leaders today are: Qualcomm Inc. (NASDAQ: QCOM), Apple Inc. (NASDAQ: AAPL) and Biogen Idec Inc. (NASDAQ: BIIB).

Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.

Option update 5-30-07: Cleveland Cliffs, Penn REIT originally appeared on BloggingStocks on Wed, 30 May 2007 12:24:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AAPLBIIBCleveland CliffsClevelandCliffsCLFoption implied volatilityoption volumeOptionImpliedVolatilityOptionVolumePEIPennsylvania REITPennsylvaniaReitQCOMWed, 30 May 2007 12:24:00 EST