Comeback Kids?

by StockJockey

Monday, December 11, 2006 - 5:24 am

Technology Bankers used to rule the earth. But traders and hedgies have assumed their throne, bumping the Quattrone’s of the street to the back of the C section. Yesterday’s news indeed.

ThinkEquity Partners LLC has both bankers and traders toiling away for Michael Moe in San Francisco and other satellite offices. Its a growth stock shop in what has been a value stock world. Life’s a bitch…

But when we finally get a sustained run in growth stocks they will be the life of the party. Bankers included.

According to these plugged-in peeps, the deal calendar is certain to stay active for some time…

December 4th:

It would be easy to say that last week’s market about nothing was a waste of five days and the aforementioned facts of the week are noise. I believe that the evidence we are in a bull market for growth stocks is clearer every day and the action of stocks confirms this.

Despite all sorts of reasons why stocks should go down, they really don’t want to and the fundamentals for growth are good and getting better.

The dearth of new IPOs, particularly in technology, is an issue for achieving some momentum in the market.

For illustration, in 1999, 323 technology companies went public and raised $31.6 billion versus 32 technology companies going public this year raising $4.9 billion.

Source: BusinessWeek, Renaissance Capital

We’re very encouraged, however, as we talk to our venture capital friends. It’s clear that a building pipeline of fast-growing, emerging companies are likely to go public in the next 12 to 24 months. These new issues should provide some real oxygen to the market and some excitement. New bull markets need new leaders.

We remain bullish for growth equities.ThinkBlog

Moe and his minions are clearly fired up about the deal pipeline. Big fees hang in the balance.

There likely are kernels of truth in Moe’s words...and they are in a position to know.

We sure don’t want to see another technology bubble. But a renaissance in growth stock investing would not kill us either.

Investors might want to have their bags packed just in case. If Moe is right the bullet is leaving the station. Thats one train you don’t want to miss.