By Angela Harmantas
Which is a better option to finance your company’s growth plans: debt or equity? Today on Before the Bell we’re looking at companies who are struggling to make their debt payments, but what other options are available in a bear market? Also, Apple’s new product launches require upgraded software which may empower one particular technology stock, and a legendary investor claims that the market is out of step with reality – here’s what you need to know today:
One of the main struggles of any growing company is whether to fund that growth through debt or equity raises. It’s certainly something that’s becoming more of a concern with markets heading towards bearish territory. We’re tackling the issue today in our top story: as our article states, issuing debt is a good way to raise capital for fast-growing businesses, as opposed to an equity raise which involves surrendering a stake in your company. But debtrequires making regular interest payments, which is where a number of companies can struggle. We’ve listed 5 small caps struggling to make its debt interest payments. If you were buying shares in a company, which would you rather see?
I’m assuming that no one’s just awoken from a coma and has thus heard the news of Apple’s new product launches: the iPhone 6s, 6s Plus, Apple TV and iPad Pro. At this point, since the launch of the 1st generation iPhone almost ten years ago, I’m always slightly amazed that the market still reacts with enthusiasm, although this time around it’s been more muted, with Apple stocks closing on Thursday at $112.57, up 2.2%. Still, it’s not as if Apple is a bargain stock yet. That’s where Avago Technologies (NASDAQ: AVGO), a designer, developer and supplier of analog, digital, mixed signal and optoelectronics components and subsystems, comes in play. This Benzinga article points out why some of Apple’s new software upgrades could power AVGO much higher in the next few months. What do you think about AVGO’s stock in particular, and are there other technology sectors that you think might benefit from Apple’s new products hitting the market? Let me know what you think and as always, we’ll explore your questions on SmallCapPower.
Legendary investor Eric Sprott is never afraid to voice his opinions on the financial sector, even if they’re unpopular. In a new interview, Eric shares his belief that the market is out of step with reality. As he says in the interview, stocks were trading at record highs over the past few years despite little to no growth in the economy. He of course touches on gold and silver fundamentals and looks back on his storied career having made (and lost) multiple fortunes. It’s a really interesting interview, so as always, let us know what you think!
Do you have a burning question you’d like answered by an investment expert or analyst? Let me know and I can post the answer here in the blog. Contact me by email at angela@smallcappower.com or on Twitter: @aharmantas.
