The Blackstone Pirates Sink While Atom Energy Soars
Is it over? Blackstone (NYSE: BX), the flagship of the pirate equity fleet, closed below its IPO price yesterday and was down 5.2% on the day. With Bear Stearns stinging from its bad subprime bets, the market is pushing interest rates higher and wondering if the merger and acquisitions boom of the last three years has finally run out of cheap money fuel.
But good old fashioned fuel itself never goes out of style in an industrial economy. As capital gets more expensive, energy remains a hot investment. Atom Energy, a uranium explorer in the Northern Territories, debuted yesterday on the ASX and promptly soared 83% from its listing price of thirty cents.
We have no idea if the company has rights to any uranium, will ever produce any uranium, or even knows what colour uranium is. But if you're speculating, who needs private equity IPOs when uranium IPOs are so strong?
Dan Denning
The Daily Reckoning Australia
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About the Author
Dan Denning is the author of 2005's best-selling The Bull Hunter (John Wiley & Sons). Dan draws on his network of global contacts from his base in Melbourne. He’s the managing editor of resource newsletter Diggers and Drillers and the editor of The Daily Reckoning Australia.