IPO Markets in Wall Street - Essay Example

Individual Marketing Article Analysis which Happened in Task: Individual Marketing Article Analysis which Happened in Introduction The article is about an analysis of IPOs deals, which were published except for real estate investments, which rose to large numbers as high as 116 in the year 2012. The IPO may not have markets in the month of December. Dieterich (2012) maintains that this is in accordance with investor advisory firms who claim that the current deals may not be attractive for investors. In the past years, December has recorded high traffics having an average of thirteen deals. However, according to dialogic, there have been no IPOs in December only once since the economic crisis, which stroke between 1993 and 2008. This is realized from the different point of views as per different analysts of firms with interest in IPOs and general investments. Hersey (1991) argues that there is no much news expected even with companies tying their best within a week. The earliest that this could occur is December 17th with series of meetings so as to interact with potential investors. This has been caused by the new rules, which governs the process of going public. Another hindrance is Christmas, which will come in the middle of marketing and may last for at least one week. The presidential elections also interfered with many companies, which could have had deals before the end of the year. Gaiman (2009) argues, however, not all of the companies had this, there were exemptions who pitched shares just a day after voting due to high levels of confidence in gaining potential customers attention, according to the chief financial officer. Analysis It still remains tricky to strike deals before the end of the year. There is a backlog of companies who have signed IPOs initial documents waiting processing but still having the lowest recorded dollar value of IPOs backlog, since the year 2009. Lomborg (2012) argues, however, according to the new laws grading IPOs, companies will have their planning confidentially. Those with an annual revenue less than one billion US dollars will have submissions of prospectus done out of public view. This would remain for at least twenty one days before the company sets off. It has been argued that deals can be underway before the public get a glimpse of the idea (Walter & Howei, 2012). This is not what is reflected by the silence in the markets. Many companies have already put up terms on offer or some have had their deals postponed after pitching to investors. A possibility is that the companies could decide to enter the fray quickly. This may come as a surprise to many who are not aware of what is happening. A typical situation that currently exists is the deal signing without disclosure to the public prior to the sealing for companies with low annual revenue. Cones (2008) maintain IPO markets are a real replica of the appearance of the general markets. When low revenues are being realized in the markets, so will the IPOs remain low. This follows lack of enthusiasm from the streets. On the other hand, when the performance is high in the general markets, things will look better in the IPO markets. This is according to an institutional sales trader in Los Angeles who makes track of IPOs. This article gives a picture of what the IPO markets look like and the expectation in the next few weeks before the end of the year. It also gives reasons being low performance in the IPO markets. This article concentrates more on marketing strategy rather than a single firm tactic. The issue raised on wider marketing intentions in this case includes going public about the IPO deals available. McGinnis (1985) maintains that marketing implication comes, where the new rules allow companies with low annual revenue to sign deals before bringing it to the public. This would encourage companies to involve themselves in IPO deals without making surface offers due to low levels of revenue. Perhaps this could be the reason behind low numbers of deals in IPO before December as indicated by various analysts. Throor (2011) argues that the world economic crisis is a key contributor to the situation of IPO markets in Wall Street. Most companies did not receive favorable revenue over the past year. As a result, the number of deals availed in IPOs reduced significantly. It is unlikely that there will be any notable increase in the number of IPO deals before the year elapses. According to Damondaran (2011), many hindrances have come along the way for such deals to be successful. The November elections affected the number of signings for many companies. Besides, Christmas and the New Year celebration will come before many companies complete the necessary procedures. Most deals fail to go public in the recent past following the experienced challenges. The most recent challenge being hurricane sandy thus affected most operations. Retail and restaurant sector goes on up sticking but holding pattern awaits. According to Wilson & Lao (2012), this sector has been picking up but not in an easy way as compared to the euro zone. High commodity prices make it uneasy to predict the future for this sector. Lewis (2010) argues that a reflection of the IPO holdings indicates that gas and technology still holds the highest on IPOs. It is apparent that IPO performance decrease significantly three weeks after November, when it was 20% and it fell to 13% within the duration. Madura (2012) argues that the trading was above the offer prices due to the reduced numbers available. The return of IPOs in the US has reduced significantly with the aftermarket returns going as low as -0.4% dropping from 5% in three weeks. Conclusion From the above analysis, it becomes apparent that IPO markets reflects a small share of the stock markets in totality but vital for growth in the markets. For this reason, there is need for the newly listed companies to be financially strong. Dieterich (2012) argued that a few number of companies listed in the IPO markets indicate a more challenging growth for markets in the US. Reasons behind these indications include challenges encountered in the recent past. Hess (2012) suggested that one among these challenges is the economic meltdown other than the recent elections and hurricane sandy, which disrupted economic operations. More companies are only expected in the list as from next year. Here is the link: http://online.wsj.com/article/SB10001424127887323713104578137340563239544.html?KEYWORDS=marketing+analysis+Journal+2012 References Dieterich, C 2012, December IPO calendar risks a zero, the wall street journal. 26th November, p. 1. Hess, R 2012, Animating with Blender: How to Create Short Animations from Start to Finish, Taylor & Francis, London. Madura, J 2012, Financial Markets and Institutions: 10th Edition, Cengage Learning, London. Levison, L 2012, Filmmakers and Financing: Business Plans for Independents, Taylor & Francis, London. Damondaran, A 2011, Damodaran on Valuation: Security Analysis for Investment and Corporate Finance, John Wiley & Sons, New Jersey. Tharoor, S 2011, Business: A Novel, Skyhorse Publishing Inc, New York. McGinnis, A 1985, Bringing Out the Best in People: How to Enjoy Helping Others Excel, Augsburg Books, Minnesota. Lewis, M 2010, Liars Poker, W. W. Norton, New York. Wilson, S & Lao, T 2012, Tao Te Ching: An All-New Translation, Shambhala Publications, Boston. Hersey, J 1991, A Bell for Adano, Thorndike Press, Michigan. Gralla, P 2005, Internet Annoyances: How to Fix the Most Annoying Things About Going Online, OReilly Media, Inc, California. 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