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IPO Surge a Healthy Sign for Markets?

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  • Description

    Heritage Capital President Paul Schatz weighs in on the state of the IPO market.

  • Duration 4:05
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One billion dollars and -- exactly a week is a sign of the risk on environment so how should you play it.

Play it joining us now on the phone is Paul Schatz president of heritage capital pop thanks for joining us.

I'm -- and -- see -- all the IPOs coming into the market.

That this week you know the -- the biggest week since FaceBook is not necessarily a sign of a strong market -- -- -- a sign of -- near term top.

Think about how many companies -- the last couple years have bide their time waiting for the opportune moment as well.

Scares the public in FaceBook waited and waited and waited -- and there's.

In attendant -- and hundreds and thousands more companies out there so it's interesting doubt if the market had a good a couple of weeks.

And now.

And -- they're both the restaurant industry yet if you look at the restaurant performance index a little esoteric indicator of activity.

It did its best level since essentially you know as early as seven Lagos fixed the good environment to sell restaurant shares in the public -- Right but do you expect the post debut performance to be what it was -- -- FaceBook was.

Tough lesson learned in a lot of different respects.

Taking a statement was the perfect storm of everything not doing an IPO that won't happen again at least -- for -- guarantee 120 years the government learn their lesson.

Would be -- small deals.

And I think would be to be a sign of a decent IPO market -- These these these shares at a price -- open up a little higher.

Both trade and a more narrow range during the day and the close the first day in the upper end of the range -- that.

That this kind of have a healthy IPO markets you certainly don't wanna -- -- -- and they want.

Abrupt -- anyone really withdraw the whole IPO market in doubt -- the rest of summer for sure.

And hit the flat but the fact that they're -- being able to -- shares to the public would have been doing it for companies are just the public.

There's it is an appetite out -- a perceived appetite.

-- those people who want to get more risky.

-- -- with this kind of search.

So I think you think that the market is is going to rally higher -- you think that we're near a short term top here at Friday's rally right urban.

You know I split I think threat this tailed -- a little bit.

Relative value of the last couple weeks a couple of months -- -- -- The characteristic are not therefore what you consider a launch spirited to 15100 on the SMP even though they may get there eventually.

I think what we're getting a little popular topic here and also this has some other presidential election year when we normally see the rally in August peak.

And then decline in -- late September and mid October start.

They're ready that when they nearing the coal mines he keep an eye on -- action in semi -- you point out they've been lagging so.

When you talk about -- frothy market give me a sense of the timeline here as it has to do the performance semiconductors.

Did to me if -- a couple of things are -- Nicole writes Denny's there are -- is at Denny's go so -- to act -- -- goes so -- the market.

Semi -- well -- -- did a great several -- nearly that big rally since then they've lagged.

-- -- decline and they -- and rallies.

They put up a little bit late last week.

But I am concerned about semi in general and -- semi RB do well I would say -- -- on balance the next couple weeks couple of months is gonna lag.

Left -- -- that part of this MM else.

High -- -- on productivity fantastically well they're -- they're closer to -- -- time highs you've got to -- a confluence of indicators.

Tell you where the market's going but I think that's -- the department -- -- front he's got this from the cemetery there are perking up from the option indicate a perking up I'm.

-- given that what's your strategy before -- at a time when -- DO.

I think right here if you look -- -- I certainly wouldn't commit more money right now well ever have a tightly stop sign I'm pretty vigilant.

I wanna sell into strength I don't wanna sell in the whole -- -- -- -- gunned down 35%.

I think if -- pop above the April peak I think take him off the table.

Absolutely and and I think you look to deploy it again as we get close the election but certainly before the election.

Paul Sachs thanks so much for coming -- we appreciate you hopping on the -- thanks -- -- banks have been went.

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