Markets
No Guidance: Emerging Growth Issuers Largely Immune to Broad Market Sentiment
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For all the focus being placed on boosting small business to create jobs and fuel an economic recovery, emerging growth companies struggling to find traction in the public markets. As a group, small issuers that have conducted private placements over the last several months have generally lagged the stock market’s rise over the last year – the Dow Jones Industrial Average Index has risen 20% - suggesting that the firms are less influenced by broad market sentiment. But exactly how far out of whack is the performance of small private placement issuers with the rest of the market? Growth Capital Investor reviewed equity private placement (EPP) activity from June 1, 2011 through May 30, 2012, using Sagient Research’s PlacementTracker database. The deals focused on growth equity private placements (GEPPs): unregistered and registered common stock sales, rights offerings, fixed-price convertible issuances, and non-convertible debt and preferred stock sales, issued at fixed-price issuance and conversion terms. No placements involving variable-priced securities, equity lines or at-the-market offerings were included.
