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Beware Of Companies Trying To Sell You Their Stock

by marketwatch.com posted 1year ago 51 views
Net equity issuance is about to smash records, and that’s a red flag, writes Mark Hulbert. : Corporate America is eager to sell you its shares. Data firm TrimTabs reports that “corporate share selling [is] set to smash all previous annual records.” With about four months left in 2020, year-to-date new equity issuance is already higher than the full-year total of any year since 2006. That’s year’s volume will likely be eclipsed before the end of August. (TrimTabs is part of EPFR, a division of Informa Financial Intelligence.) • Share issuance suggests that corporate managers believe their shares are not undervalued.

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