A Sympathy Card for an Upcoming Flotation?

Morningstar columnist Rodney Hobson will be steering clear of greeting this newcomer to the London Stock Exchange

Rodney Hobson 25 April, 2014 | 1:49PM

The line of companies seeking to float on the London Stock Exchange shows no signs of drying up. It’s a nice, steady stream, and apart from Royal Mail (RMG) there is nothing so large that it might cause indigestion.

This is a vote of confidence, not only in the exchange but in prevailing investment conditions. While there is always the possibility that floats signal that the market is near to the top, the continuing stream suggests that there will be no immediate sudden collapse in share prices.

The implication is that while we will continue to see sharp lurches in the major indices the market is likely to continue sideways for the time being. I remain convinced that the next breakout will be upwards.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Royal Mail PLC137.55 GBX2.46

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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