Juggling Dynamite

Our weekend business panel discusses the controversy over the Ontario government’s decision to temporarily close some non-essential retailers in Toronto and Peel Region, while big-box stores are allowed to remain open. Plus, Saskatchewan has introduced legislation that will eliminate small business corporate income tax over the next couple of years. And two new IPOs made their market debut this week, with DoorDash and Airbnb going public.  Here is a direct video link.

Danielle was a guest with Jim Goddard on Talk Digital talking about recent developments in the world economy and markets.  Here is a direct video link.

Initial public offerings (IPOs) allow founders, early investors and investment bankers to capitalize on hype and cash-out by selling shares to the public.  Year to date, there have been $163 billion in IPOs in the US.  This surpasses the previous IPO record in 1999 (just before tech shares plunged 80% on average between 2000 and 2002).

In addition to selling shares to the public on newly listed companies, insider selling versus insider buying of shares at existing public companies reached a ratio of 58:1 last month.  Readings over 20:1 are considered a bearish sign indicating that corporate executives see cash as more valuable than their company shares.

Public appetite to buy companies at non-sensical valuations should cause pause for thinking people today.  For some sober assessment watch:  Doordash is the ‘most ridiculous of 2020 and holds no value’:  Analyst.