Window shut for broker IPOs
A few months ago, rumours were flying about the pending IPOs of Cormark Securities and Wellington West Capital Markets. The acquisitions of Blackmont, Westwind Partners and Orion Securities only added to the furvour and excitement.
Since the highs of last fall, the publicly traded brokers haven’t performed well at all. Canaccord (CCI:TSX) is down more than 50% from its high (wasn’t that when Peter Brown announced his retirement?), and GMP (GMP.UN:TSX) is down by a third. Clearly, the lack of IPOs and large M&A fees will have an impact on revenue. Tom Weisel told investors last week that the next six months will be difficult.
With liquidity issues still swirling around Bear Stearns (BSC:NYSE; did you notice we beat Bloomberg and Reuters with that capital crunch rumour? see post “Bear rumour speaks volumes“, March 10-08), and a murky pipeline, Canada’s large private independent dealers won’t be going public any day soon.
(sry about the quiet week; your loyal scribbler has been laid out by the flu)