NEW YORK (TheStreet) — The epic rise of Caesars Entertainment shares — and their subsequent fall after a February initial public offering — is as an early read on an investment boom that will connect private equity financiers with ordinary stock investors.
Private equity firms are expected to look at share sales like Caesars Entertainment as a way to begin exiting buyouts in coming years. Those soon to be public investments, and a string of recent multi-billion dollar IPO’s, give investors a new set of stocks to pick over. But buyer beware those companies may increasingly be weighed down by their former owners.
aRecently IPO’ed stocks like Caesars Entertainment have a private equity share overhang
When private equity firms Apollo Global Management and TPG Capital launched Caesars Entertainment onto public markets they likely didn’t take a near doubling of the casino operator’s shares to $15.39 as a big victory. That’s because after trying for a $531 million IPO in November 2010, the buyout investors settled on an offering of just 2% of the company’s shares, raising $16.9 million. While Apollo and TPG didn’t sell shares in the offering and won’t in a possible 34.7 million share follow up stock sale, their still giant stake in Caesars Entertainment is indicative of how large privately held share stakes can weigh on new offerings.
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Read more from the original source: 5 Stocks That Could Be Trampled
BALTIMORE (Stockpickr) — We may be in the middle of a rally, but some stocks are seeing more of it than others. While the Nasdaq posted gains of 0.75% in yesterday’s session, the Dow barely broke even. To help separate the wheat from the chaff, we’re turning to Twitter today to find five new names worth trading.
Since its introduction, the microblogging tool has been popular among traders looking to share investment setups with the trading community. Today, with 300 million users, it’s reached a level of popularity that makes it an even more useful resource for investors looking to generate trading ideas in 140 characters or less.
Brevity has been a big part of Twitter’s success — and a reason for the service’s popularity among traders. After all, it doesn’t take more than a few seconds to blast off a tweet about your latest trade, or thoughts about a significant market move. Third-party services such as StockTwits also aggregate stock market tweets in real time, providing an interesting sentiment gauge or an instant opinion on your latest position.
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See original here: 5 Breakout Trades to Take From Twitter
NEW YORK (TheStreet) — The huge spike in shares of Cobalt International Energy on Friday is your classic frontier oil exploration story.
The Angolan offshore pre-salt region compares to the Brazilian pre-salt as one of the most hoped-for offshore oil gushers of the next century. Cobalt hit the proverbial pay dirt, but given Angola’s profile as one of the best places to speculate for future production growth, the Goldman Sachs-backed wildcat company may not be alone in benefiting from positive drilling results in Angola.
Cobalt’s CEO Joseph Bryant, said in a release on Thursday night of the Angola results: “Cameia is an extraordinary success. The results have exceeded our pre-drill expectations and have increased our confidence in our entire West Africa Pre-salt exploration inventory. We will immediately commence our Cameia appraisal program.”
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Visit link: 4 Oil Companies That May Benefit From Cobalt’s Angola Gusher