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10k Words Equitable Investors May 2023 Miserable IPO returns have been the story even though Kenvue got away with a 22% stag on day one of its US listing last week; a gap has opened between small and large stocks with the "jaws" notable in both price movements and valaution comparisons; in that context it is interesting to see how smaller stocks have outperformed historically coming out of market drawdowns; in Australia the industry survey looks negative but S&P/ASX EPS revisions haven't really been notable; insolvency is on the rise as is US consumer credit card debt; and finally for whoever is advising the state fo Victoria, credit ratings do matter. Distribution of returns from US IPOs by issue date (2023 to date)
Source: Equitable Investors, StockAnalysis Distribution of returns from ASX IPOs by issue date
Source: Equitable Investors ASX small caps (SSO - orange) v large caps (STW - blue)
Source: Equitable Investors, TIKR US micro caps (IWC - orange) v large caps (IVV - blue)
Source: Equitable Investors, TIKR Past 20 Years World Small Cap P/E Ratios
Source: Pzena Nasdaq 100 Price/Sales Ratio
Source: Charles Schwab & Co. US small caps v large caps during & after the "dot-com bubble"
Source: abrdn US small caps v large caps during & after the GFC
Source: abrdn S&P/ASX small v large during & after the "dot-com bubble"
Source: Equitable Investors, Iress S&P/ASX small v large during & after the GFC
Source: Equitable Investors, Iress AIG Industry Index
Source: IFM, AIG Consensus EPS expectations for S&P/ASX 200
Source: Cannacord Large bankruptcies ($US50m+ liabilities) - Jan-Apr count for 2023
Source: Bloomberg, @jsblokland Australian companies entering external administration for the first time (FY23 = black line)
Source: ABS US Consumer Loans (Credit Cards & Other Revolving Plans, All Commercial Banks)
Source: @glightfinancial, FRED Government Bond Yields and their S&P credit ratings
Source: Equitable Investors, worldgovernmentbonds.com May Edition Funds operated by this manager: Equitable Investors Dragonfly Fund Disclaimer Nothing in this blog constitutes investment advice - or advice in any other field. Neither the information, commentary or any opinion contained in this blog constitutes a solicitation or offer by Equitable Investors Pty Ltd (Equitable Investors) or its affiliates to buy or sell any securities or other financial instruments. Nor shall any such security be offered or sold to any person in any jurisdiction in which such offer, solicitation, purchase, or sale would be unlawful under the securities laws of such jurisdiction. The content of this blog should not be relied upon in making investment decisions. Any decisions based on information contained on this blog are the sole responsibility of the visitor. In exchange for using this blog, the visitor agree to indemnify Equitable Investors and hold Equitable Investors, its officers, directors, employees, affiliates, agents, licensors and suppliers harmless against any and all claims, losses, liability, costs and expenses (including but not limited to legal fees) arising from your use of this blog, from your violation of these Terms or from any decisions that the visitor makes based on such information. This blog is for information purposes only and is not intended to be relied upon as a forecast, research or investment advice. The information on this blog does not constitute a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Although this material is based upon information that Equitable Investors considers reliable and endeavours to keep current, Equitable Investors does not assure that this material is accurate, current or complete, and it should not be relied upon as such. Any opinions expressed on this blog may change as subsequent conditions vary. Equitable Investors does not warrant, either expressly or implied, the accuracy or completeness of the information, text, graphics, links or other items contained on this blog and does not warrant that the functions contained in this blog will be uninterrupted or error-free, that defects will be corrected, or that the blog will be free of viruses or other harmful components. Equitable Investors expressly disclaims all liability for errors and omissions in the materials on this blog and for the use or interpretation by others of information contained on the blog |
