Jun 30, 2014, 2:15 pm EDT
Old Mutual Asset Management — a well-heeled, multi-boutique asset manager with $203.1 billion in AUM, has filed for an IPO. The firm is a division of Old Mutual, which is a London-based insurer established in 1845.
Old Mutual Asset Management’s roots go back to 1980, which certainly was an ideal time to start an asset management firm given that was the start of America’s massive bull market. To build scale, the firm pulled off a variety of acquisitions of boutique operators. Yet Old Mutual allowed them to remain fairly independent, which has helped to allow for better investment returns as well as continuity. (Average tenure for a manager is roughly 20 years.)
Old Mutual currently has seven boutiques, and each has access to the parent company’s core infrastructure, such as compliance, distribution channels, talent management and risk management. Read
Jun 30, 2014, 10:20 am EDT
CNBCs second annual Disruptor 50 list is out. A total of 50 private companies from 27 different industries get props for their forward-thinking businesses. No less than 15 financials occupy spots on this year’s list.
While all 15 financial companies have interesting business models, three in particular caught my attention as being companies with particular promise if they were ever to go public. In particular, each of these companies is disrupting the traditional financials business in interesting and promising ways.
Read on and I’ll explain what makes this trio of disruptive businesses so attractive as investments. When these three financials go public, you’ll want to be a part of their IPOs. Read
Jun 27, 2014, 11:59 am EDT
According to the latest Alibaba IPO filing, the company will list its offering on the NYSE — a part of the IntercontinentalExchange (ICE) — under the ticker BABA. While this is not necessarily a surprise, it is nonetheless another sign that the Nasdaq OMX Group (NDAQ) is losing its long-time dominance of tech deals.
If anything, the NASDAQ has deep innovative roots. Keep in mind that — when it was launched in the early 1970s — it was the world’s first electronic stock exchange. For the most part, it was a way to make it easier to trade in smaller stocks that could not meet the stringent requirements of the NYSE.
But this turned out to be a huge advantage, especially with the PC revolution in the 1980s. During this time, the NASDAQ benefited from the listings of breakout companies like Apple (AAPL), Microsoft (MSFT), Intel (INTC) and Oracle (ORCL). Read
Jun 27, 2014, 9:45 am EDT
People haven’t used as much Internet bandwidth discussing the Alibaba IPO as the World Cup, but it’s probably a close second.
Indeed, the Chinese Internet giant has captured the imagination of financial pundits for month, and for an obvious reason:
Everything about Alibaba is huge. Read
Jun 26, 2014, 12:58 pm EDT
Last night GoPro (GPRO) priced 17.8 million shares at $24 apiece, which was at the top of the range of $21-to-$24. Founded in 2002, the company is the developer of popular HD action-sports cameras. And so far in today’s trading, GPRO stock is up an impressive 32%.
Then again, it’s no surprise that the GoPro IPO is a winner. The company is one of the pioneers of the wearables market, which looks to have a bright future. From 2011 to 2013 revenues surged from $234.2 million to $985.7 million. GPRO has also been able to be consistently profitable. Last year, the net income came to $60.6 million.
To gin up even more excitement for the GoPro IPO, the company’s founder and CEO, Nick Woodman, gave an interview on CNBC’s “Squawk Box.” He mentioned that the key to the company’s success was that it essentially was the first version of the “selfie.” According to Woodman: Read
Jun 26, 2014, 9:05 am EDT
Which stock has more upside: Alibaba or its biggest U.S. counterpart, Amazon.com (AMZN)? And if you had, say 100 shares in Amazon stock, would you pawn them in a heartbeat to buy big into the Alibaba IPO?
Well, before you do anything too rash amid the crazy buzz around this upcoming new offering, if you find yourself in the situation of holding Amazon stock … keep on holding.
Amazon Stock Still Has Some Luster
One of the biggest and longest-standing complaints about Amazon stock — its breathtakingly high valuation — has actually come down in the past year amid a nearly 20% slide in AMZN. Granted, that still gives Amazon a laughable valuation of 500-plus, but a price-to-sales ratio of just under 2 is something investors can live with. Read