This year, Wall street is having a make over. The beauty is understanding short interest and how to use it. And how not to use it, by going to public and private companies for stock and cash pools. Even directly sell for public companies that had shelved stocks already registered with SEC.
Poorly run public companies are subject to M&A. Private equity tried to steal good operation from poorly run management. In the end, there will be more ipo to replace the stocks lost in M&A. Wall street has not missed the disappearing stocks in their inventory yet.
The important value of large brokerage is the net worth of their customers who owned the stocks in street names. Short interest often drive the stock prices way down hurting customers, then hurt the brokerages with no cash just undervalued stocks.
This is all being challenged in this volatile market. Then, ipo will come and the street will calm down and prosper with more stock to move.
Until then, the economy is alive and well. Job creation is driven by personal demands. Housing, over built, at 2 million units, is shrinking to 1.75 million units this year. By 2008, building contractors will upgrade many older houses for resale, and people will move on to the new homes in the growing towns with growing jobs? This country will move on to better jobs, not tied down by old houses. Vacating old house will leave old job for some one else? |
