09 August 2010

KKR Cancels Their Secondary Stock Offering of $500 Million As Earnings Drop 92%

"Market conditions" says Bloomberg TV. And a freshly announced 92% drop in earnings year over year that the company announced after the bell did not help.

The decline in profits was related to "one time issuance of equity awards from its stock issuance" most likely related to their recent IPO on July 15.

I'll try to keep a straight face. I'm sorry. Who is their CFO, Bernie Madoff? What they hell are they doing with a secondary offering less than a month after the IPO, and having given away most of their earnings in employee bonuses! Are they nuts? Do these jokers have a business plan, or do they just make it up as they go along?

The pulling of a big high profile secondary like this is a sign that the underwriters looked behind the curtain of market depth and volume and said, Yech! There is no way this beast will fly and we are not going to eat the excess shares and risk a failed offering. We're technically insolvent ourselves!

Aug. 5: KKR Rises As Citi Says BUY to $14 Target

Maybe Wall Street really needs those wealthy welfare tax cuts if bonuses are going to be limited to only 92% of earnings, and the shareholding public will not agree to foot the bill in the free market by taking on new shares just a few weeks after the IPO.

Spin that, you gravy sucking Wall Street pigs.

KKR Drops Plans for Stock Offering

AUGUST 9, 2010, 5:38 P.M. ET.

KKR & Co. said it dropped plans to raise $500 million in a stock offering, a setback for the firm as it begins life as a company publicly traded on the New York Stock Exchange.

In reporting earnings for the first time as an NYSE-listed firm, KKR said late Monday that it earned $29.9 million, compared with $365.8 million during the same period of 2009. That 92% drop, in part, reflects the cost of the one-time issuance of equity awards relating to its stock issuance. (The shareholders should revolt and throw out management - Jesse)

KKR's core private-equity business performed well. Holdings on its balance sheet, which include Texas utility Energy Future Holdings Inc., were marked 6% higher in the three months through June. The Standard & Poor's 500-stock index dropped 12% for the quarter.

Last month, KKR moved its listing to the NYSE from the Euronext exchange to provide its stock with more liquidity and a broader investor base. In May, it announced that as part of its U.S. listing it would raise $500 million to fund the firm's growth and potential acquisitions. KKR has since squelched the offering...