Tag - Apc

Small-cap stocks held in higher ground through midday trading, with commodity names bolstered by a rise in oil prices while money flow into stocks was supported by a strong U.S. dollar and soft credit instruments. At 12:50 p.m. ET, the Russell 2000 (NYSE:IWM) was up 3.58, or 0.50%, at 724.12. Small caps were outperforming other index products, buoyed by gains in small energy names.

Energy stocks were also providing the biggest boost to large caps, with Exxon Mobil Corp. (NYSE:XOM) up 0.9% and Anadarko Petroleum Corp. (NYSE:APC) surging 5% as the firm announced plans for a $5 billion share buy-back program.

This morning’s rush of economic data in the United States on housing and consumer confidence brought a mixed picture, with the housing market still sinking, but consumer confidence climbing above market expectations. Still, confidence is low historically, and likely got a lift from the pullback in gasoline pump prices in recent weeks. If crude oil starts to climb back above $120 and higher, then a new crisis of confidence could be just around the corner.

Speaking of crude oil, the market for black gold was up about $0.75 a barrel, slipping back below $116 dollars, down from the $117 level on the morning highs. The energy market is reluctant to get carried away on the sell side right now until they get a better picture of how Hurricane Gustav will track through the Gulf of Mexico in the coming days. Meanwhile, the U.S. dollar remained strongly higher against the euro, up about 0.8%, near the highest point since February.

It should be noted that volume on today’s stock market trading has been light, with many traders on holiday to enjoy the last few weeks of the summer season. In fact, the move so far today in the Russell has been confined to an inside session of the more dynamic decline from Monday … in trader parlance, it has something . . .

(Nasdaq:LLACU)
Scheduled for the week of May 19
$350 million estimated proceeds
$378.4 million estimated post-money valuation

If buying stock at an initial public offering is an act of faith, investing in special-purpose acquisition companies (SPACs) — startups with no operating assets (and no guarantee they will find any) — is an act of blind faith.

A SPAC is created with the sole purpose of acquiring an operating business with shareholders' money. Despite the fact that few SPACs have found anything to buy, new ones keep cropping up. Liberty Lane’s big selling point seems to be that it’s the first one that mighty Goldman Sachs is bringing to market, which may make it seem more legitimate in a sector once dominated by squirrelly shell companies traded in Vancouver.

Its founding officers, Paul Montrone and Paul Meister, had long tenures with Fisher Scientific, a manufacturer of scientific and industrial instruments now known as Thermo Fisher (NYSE:TMO). Montrone served as CEO from 1991 to 2006, and Meister was the company’s CFO from 1991 until 2001, when he was named vice-chairman of the board.

Fisher Scientific grew in part through 60 acquisitions, so the draw is that Montrone and Meister know to find acquisition candidates and structure good deals. Liberty Lane isn’t the only SPAC with experienced dealmakers at the helm, but not all have that distinction; several SPACs have executives who are more figureheads than deal-makers (Heckmann Corporation (NYSE:HEK) has on its board former Notre Dame football coach Lou Holtz and former U.S. Vice President Dan Quayle).

But no matter how good a track record Montrone and Meister have, they still have to find a good business to buy in the next two years, and that’s tough to . . .