Secondary offerings are de rigueur in these balance-sheet-obsessed times.
Bank of New York Mellon
, across industries, companies are issuing stock in order to bolster their cash reserves -- and the success of these offerings may indicate that investors are growing more and more bullish.
In his "Mad Money" broadcast Tuesday evening, Jim Cramer indicated as much. He argued that these successful secondary offerings -- and the higher trading volumes they're bringing to the market -- suggest that more people want into the stock market than want out: the essence, of course, of a move from bear to bull. He advised using interday lows as entry points into equities.
Though Cramer singled out Bank of New York, Andarko and Ford (which he advised buying at a price lower than its offering point), billions of dollars worth of offerings are on the slate. Banks, of course, are the most likely issuers of new stock as they seek capital post-stress-test.
all recently said they plan to raise money -- $6.5 billion in total -- through the equity markets. And, of course, these follow on the heels of big offerings by
just a week ago.
All the issuance activity might have another effect: resurrecting the IPO market. Activity there has been growing of late. Digital Globe, OpenTable and SolarWinds are all set to go public within the next week and a half, for example, in the wake of successful debuts from the likes of
Mead Johnson Nutritional
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