Bundle of investment news: Workiva, pranks of investment banks and loans for oil and gas companies

Пачка инвестновостей: Workiva, шалости инвестбанков и займы для нефтегазовых компаний

Cloud service Workiva buys ParsePort. American investment banks are suspected of cheating in relation to large clients. Oil and gas companies began to receive more funding - but this is not certain.

Disclaimer: when we talk about, that something has grown, we mean a comparison with the same quarter a year earlier. Since all issuers are from the USA, then all results in dollars. When creating the material, sources were used, inaccessible to users from the Russian Federation. We hope, Do you know, what to do.

Cloud in the cloud: Workiva extension

Manufacturer of cloud-based enterprise communication software Workiva (NYSE: WK) buys Danish software maker ParsePort. The latter makes programs for financial reporting.

The deal was valued at approximately $100 million, which Workiva, seems to be, taken out of a magician's hat, because she was, and remains unprofitable.

It's hard to say now, how good a purchase would be ParsePort: it won't be clear until a couple of years from now.. But debt servicing and financing of current operations will become somewhat more difficult for it in the near future.. So Workiva shareholders can only hope that, that her management calculated everything.

Upside and inside: how large investors are deceived on the American stock exchange

Wall Street Journal (WSJ) conducted a study of exchange transactions of large investors and found out, that information about large sales of shares seeps into the market even before, how the transaction will be completed.

WSJ experts analyzed about 393 major transactions on the US stock market over the past three years. Only large transactions of large investors were taken into account. For example, like when 3G Capital sold part of its shares to Kraft Heinz, and Apollo Global Management sold shares in Norwegian Cruise Line Holdings.

IN 58% cases, i.e. in 268 transactions, the price of these shares in the market fell immediately before the sale. That is, information about a large sale leaked to market participants and they managed to sell shares before that - and from this the price fell.

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As a result, those, who sold shares, earn less money, because the shares had to be sold cheaper. The average lost profit is $1.4 million per transaction. Overall, there are significant losses.: so, Bain Capital didn't make $33m from Canada Goose stock, because the shares of this company "suddenly" fell before, how Bain Capital sold its stake.

Пачка инвестновостей: Workiva, шалости инвестбанков и займы для нефтегазовых компаний

Of course, the first suspects in such cases are investment banks, on the platforms on which trading took place. Very likely, that banks give "tips" to their large select customers about, that a big stock sale is coming, - and they manage to sell their shares before, how to carry out a large transaction. Banks have enough incentives: they themselves actively trade and are interested in, to buy shares at the lowest price.

In the light of these revelations, under the gun of regulators and law enforcement agencies, such giants are now, как Morgan Stanley (NYSE: MS). By the way,, it is MS that accounts for a significant part of the trading of shares of large institutional investors.

It's hard to say yet, what will be revealed during the investigation, but still shareholders of the largest investment banks should prepare for unpleasant revelations: very likely, that at least these banks are facing a large fine.

However, it will be extremely difficult to prove the fact of dishonest behavior on the part of investment banks: in such cases, everything is based on interpersonal communication of specific people literally at the level of “discussed at dinner”. Although in the US they pay quite generously for useful information. So if there is strong evidence, then it won't work for them.

More ESG: do banks finance oil and gas production well

A group of analysts from very different organizations like the Rainforest Action Network, BankTrack compiled the Banking on Climate Chaos 2022 report. The report is dedicated to, how financial institutions around the world finance projects in the field of hydrocarbon production.

The report is rich in details, there are many numbers and information is given at the level of specific large projects of banks. So I highly recommend it for everyone to read., who are interested in investing in the energy sector.

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The most interesting thing in it is the assessment of the amount of funding. It can be seen from the report, that over the past few years, loans in this area have been falling, although the reporters are desperately trying to put things in the right light, that banks are very generous in lending to the extraction of natural resources. But in fact one can say, that ESG propaganda works well and that financial institutions are now indeed less willing to lend to oil and gas projects - indicators are treading water and gradually declining.

The fall was not so serious, as the reporters would like, but still, even considering the enthusiasm of green investors, unlikely, that the developed world will overnight intend to switch to the consumer standards of the DPRK. After all, only in this case, the financing indicators of traditional commodity companies would fall quite strongly..

And while the countries of the OECD and the rest of the world are not striving to switch to furnaces with dung, financing of oil and gas companies will remain at a relatively high level - otherwise they simply will not be able to pay for projects in the field of oil and gas production, that the world still needs in sufficient quantities.

Пачка инвестновостей: Workiva, шалости инвестбанков и займы для нефтегазовых компаний

Пачка инвестновостей: Workiva, шалости инвестбанков и займы для нефтегазовых компаний

This can lead to rather disappointing conclusions for traditional oil and gas companies.: it will be more difficult for them to get money, than before. After all, such "screaming" reports will make the issuance of loans in this area more and more condemned..

It seems to me, the main victim here can be dividends of such companies: The ESG lobby will demand more and more concessions and, as a compromise,, just for that, to keep access to borrowed money in acceptable amounts, managing directors of oil and gas companies may start cutting payouts.

The position of banks here will look very simple: okay, we will give you money for oil production in sufficient volumes for our comfortable existence, but only when you reduce payments - otherwise, see, you have too much free money.

This theoretical threat, but still it should be taken into account in the current circumstances.

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