FAST FIVE: The Zombification Of America – Over 40% Of Listed Companies Don't Make Money
Its market capitalization is larger than Ford and General Motors put together.
Jay Ritter, a finance professor at the University of Florida, provided The Journal with a chart that shows the percentage of money-losing IPOs hit 81% in 2018, the same level that was also seen in 2000. The Journal notes that 42% of health-care companies lost money, mostly because of speculative biotech.
About 17% of technology companies also fail to turn a profit. A more traditional company that has been losing money is GE.
Its shares have plunged 60% in the last 42 months as a slowing economy, and insurmountable debts have forced a balance sheet recession that has doomed the company. Data from S&P Global Market Intelligence shows for small companies, losing money is part of the job.
And while central bank liquidity has zombified companies, investors are already starting to make a mad dash out of trash into companies that turn a profit ahead of the next recession. Tyler Durden Wed, 01/15/2020 – 17:25 Tags Business Finance.