Companies Sell As Much Stock As Possible As Investment Officers Warn The Window To Sell Is Closing (Video)
Companies Sell As Much Stock As Possible As Investment Officers Warn The Window To Sell Is Closing Video by Silver Report
Investment Officers are warning the time to sell stock to retail investors is now as they anticipate The stock market will begin it’s decent very soon. This isn’t an exaggeration and companies have been in a rush to take advantage of the public’s confusion. Since this began the retail investors have poured their money into stocks thinking it must have been a perfect opportunity to put their money into the stock market.
Investment officers have been advising companies that cash is more valuable than stocks in the current business climate and have urged them to unload before the prices fall. In fact, Since March 1, share sales by public companies and top holders have raised about $35 billion, with this week’s activity comprising half of that volume. Equity-linked offerings are also on the rise, raising $11 billion in the last two weeks – nearly double their haul from the second half of April.
”If your stock has done well, you might do a secondary offering here because you know there’s going to be an opportunity to deploy that,” said Jerry Braakman, chief investment officer of First American Trust, in Santa Ana, California, which manages about $1.8 billion.
“When people are looking at this current environment, cash is king and equity is a long-term holding.” Because of course equity is a “long-term holding” due to the fact that we are entering the greatest depression the US has experienced to date. Bloomberg put it this way “the record for stocks after big surges in share sales isn’t encouraging” and usually results in broad market selling, something which the companies know too well, and is precisely why there is a firehose of equity offerings now before the window closes.
Consider that monthly proceeds from secondary offerings have surpassed $30 billion on only three occasions since 2010. Three months after those spikes, the S&P 500 was trading lower every time. Proceeds from this month’s U.S. stock offerings have surpassed $24 billion so far, but are almost assured to cross $30 billion in the next two weeks.
This means institutional money managers are warning the window to sell is closing rapidly and the current signals suggest we are on the edge of a major leg down.