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USA Today (August 2)

2018/ 08/ 04 by jd in Global News

Apple just became the first U.S. company to achieve a $1 trillion valuation, which seems rather unfathomable at first. “For $1 million you could buy a very nice one bedroom apartment in San Francisco. With $1 trillion, you could buy a very nice apartment for everybody in the city (San Francisco’s population is close to a million).” But hopefully Apple will “write a check because there’s just over a trillion dollars currently in circulation in the U.S.”

 

Bloomberg (March 18)

2016/ 03/ 20 by jd in Global News

Mercari Inc. just “became the first Japanese startup worth at least $1 billion,” making it Japan’s only unicorn. “Though the valuation is an accomplishment for Mercari, it also highlights the dearth of major private startups in the world’s third-largest economy.” Of the 155 unicorns worldwide, 92 are in the U.S., 25 in China, seven in India and only one in Japan. “Japan has suffered from a lack of venture capital and a risk-averse culture where the best and brightest strive for stable jobs at big companies and then stay for life.”

 

CFO.COM (November Issue)

2012/ 11/ 30 by jd in Global News

“Is providing quarterly earnings guidance worth the effort?” Increasingly U.S. companies are saying no. Quarterly guidance is criticized for “consuming an inordinate amount of time, rarely hitting the bull’s-eye, and unnecessarily shifting company’s focus to short-term tactics at the expense of long-term value.” While quarterly guidance still remains common, more companies are moving toward “annual guidance with quarterly updates.” According to the National Investors Relations Institute, the percentage of companies providing quarterly guidance has fallen from 86% to 76% since 2009. A McKinsey & Co. study analyzed 4,000 public companies, finding that “quarterly earnings guidance does not result in superior valuation.” Many companies who want to discontinue the practice, however, may hesitate out of fear analysts might assume they were trying to hide something.

 

Euromoney (August Issue)Euromoney (August Issue)

2012/ 08/ 11 by jd in Global News

“Trust has broken down between IPO vendors and issuers and traditional investors in new stock offerings in Europe. Deal arrangers seem incapable of bridging the valuation gap between the two sides.” Issuer focus on achieving high valuation is colliding with investor expectation to buy at a discount. As a result, 50% of Europe’s large planned IPOs failed this year. The situation is only slightly better for IPOs of all sizes. “In the first seven months of this year, 143 initial public offerings were priced for European issuers, while 50 others, over one-third as many, were either announced and then postponed or launched and then pulled. That’s a very high failure rate.”

“Trust has broken down between IPO vendors and issuers and traditional investors in new stock offerings in Europe. Deal arrangers seem incapable of bridging the valuation gap between the two sides.” Issuer focus on achieving high valuation is colliding with investor expectation to buy at a discount. As a result, 50% of Europe’s large planned IPOs failed this year. The situation is only slightly better for IPOs of all sizes. “In the first seven months of this year, 143 initial public offerings were priced for European issuers, while 50 others, over one-third as many, were either announced and then postponed or launched and then pulled. That’s a very high failure rate.”

 

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