There are Always Buyers

There are Always Buyers – even for Clean-tech deals. An Update from the Street.

In the movie Wall Street, Michael Douglas plays a greedy, ruthless banker who hangs everyone out to dry in order to win. His motto is “greed is good”. Well, his character’s antics have turned out to be more reality than fiction as we uncover more real life blunders of Wall Street bankers. What does this have to do with our current markets? Everything, really. Since 2008, only select stocks have performed well in the overall market and the clean tech sector has been obliterated. It seems the big banks have been playing roulette with client money every chance they get. This has affected investor confidence and is reflected in lower stock prices and trading volumes across the board. Added onto world economic woes, fear and doubt have been instilled into the markets.

While many may be saying this is not the time to get into the markets others, like Warren Buffett are licking their chops. They see opportunities everywhere and at bargain prices compared to just a few years ago. Where does an investor like Warren Buffett get his confidence to buy when everyone else is stuffing their mattresses? From what I have read, he believes in market cycles and through his experience believes that the markets will recover and still be the best place to put his money for the long term.

Before you get too depressed, think about this. Because of the greed factor, many Wall Street types have historically created all kinds of products to make money in the stock market, such as, Mutual Funds, Junk Bonds, Derivatives, and ETF’s just to name a few. All of these are products that were “invented” by some Wall Street guru or mathematician who figured out a new way to make money in the market. Trust me, they will think of something else to get money to come back to the market and it will turn around again. Eventually, investors will pour back in and look for new ways to invest because they want to make big bucks too. They want a return on their investment not just cash under the mattress. It is just a matter of time.

So how does a new venture find the capital it needs, and how do existing companies find investors to move their stock prices up? The answer is complicated. “Show me the Money” – another famous movie quote rings true today – finding those pockets of money is harder than ever before. But not impossible. Here is what we are hearing: Best sources of funding are now from private equity groups, family offices, and corporations with innovation funds looking for smaller companies to invest in. Keep your rolodex fresh with all your contacts and utilize them all when looking for capital. Money is much harder to come by these days for junior and start-up companies, but for the right venture, the money will come forward eventually if you are persistent and on top of your game.

To learn more about investment ideas and companies, check out our upcoming program, the Modern Energy Forum, September 5-7, in Denver Colorado. For more details on how you can succeed in these markets, contact michele@minellc.com.