New Capital Weekly
New Capital Update – September 2012
Index
Tuesday, February 09,
2016
Performance
EV/Sales (LTM)
M/M
Y/Y
YTD
Current
5 yr avg.
New Electronics
1.8%
5.0%
9.9%
3.2x
3.0x
New Energy
1.2%
15.8%
3.5%
0.7x
1.0x
New Environment
3.4%
4.6%
8.4%
2.3x
2.7x
1
New Finance
1.0%
25.5%
20.5%
2.3x
2.8x
New Electronics
2
New Media
4.7%
6.1%
14.0%
4.2x
3.6x
New Energy
4
New Environment
6
New Finance
8
New Media
10
New Capital Update
Important Disclosures
12
New Electronics. Companies in our New Electronics universe continue to trade at a
premium to their five year average, and the index is giving positive returns on all
counts. Apple is clearly the dominant name in this space, as the sales of the newly
launched iPhone 5 are expected to reach record levels despite the mapping problems.
The company is further seeking to strengthen its position and has filed for $707Mn in
additional damages and a ban on U.S. sales against key rival Samsung.
New Energy. This is the only index which gave negative returns last month, despite
new energy companies trading at the deepest discount relative to other new capital
industries. The fast growth of solar installations in the U.S. and the tripling of U.S.
thermal energy storage capacity through 2020 helped the U.S. dominate new energy
headlines, along with Blackstone’s >$2Bn acquisition of smart home company Vivint.
New Environment. The index has bounced back and is now giving positive returns on
all counts, while companies continue to trade at a discount. The Healthcare segment
dominated the news as the desire for "green," waste-reducing purchases will help the
refurbished medical devices global market grow to an estimated $8.5Bn by 2017.
New Finance. This is the best performing index on a long-term basis, and gave
positive returns on all counts last month. The two leading debt collection companies –
Encore Capital Group (ECPG) and Portfolio Recovery Associates (PRAA) – have been
named among 100 Fortune's Fastest-Growing Companies.
New Media. This was the best performing index last month, and stocks in Scura
Paley’s New Media index continue to trade at a premium to their five year average.
Corporate VC internet deals reached a high in 2Q12, while Facebook’s closely
monitored Mobile Ad Revenues are forecasted to reach $630Mn in the U.S. by 2014.
Scura Paley
Market Intelligence
Peter Wright
1-617-454-1030
pwright@scurapaley.com
Please refer to the last page
of this report for important
disclosures.
1
Market Intelligence
N e w C a p i t a l U pd a t e – S e p t em b e r 2 0 1 2
Notable Announcements in New Electronics
Industry Update
Gartner: Cloud services worth $109Bn.
Read More
IHS: Tablet display shipments to grow 56% in 2012.
Read More
Apple’s share of U.S. smartphone market now over 33%.
Read More, See Chart on Page 3
Apple files for U.S. sales ban, $707Mn damages against Samsung.
Read More
Europe lays out proposals for wireless spectrum sharing.
Read More
500Mn android devices activated globally.
Read More
Chip sales grew slightly in July.
Read More, See Chart on Page 3
Fab tool book-to-bill declines again.
Read More
Microinverters, power optimizers to grow by 70% in 2012.
Read More
PCs used less than half of DRAM bits in 2Q.
Read More
Company Update
iPhone 5 sales break record, shipping slips to 3-4 weeks.
Read More, Read More
Samsung building China fab, to add iPhone 5 to lawsuits vs. Apple.
Read More, Read More
Yahoo raises $4.3Bn from Alibaba sale.
Read More
Alibaba spins off Aliyun mobile OS team.
Read More
GoDaddy outage takes down millions of sites.
Read More
Palo Alto Networks beats estimate – revenue up 88% to $75Mn.
Read More
HP revises layoff plan by increasing job cuts to 29,000 by 2014.
Read More
Japan Inc. reportedly moves to block KKR’s Renesas takeover.
Read More
TSMC to expand 2013 capex to $10Bn.
Read More
Intel slashes 3Q revenue forecast.
Read More
New Capital Update
2
Temasek, Goldman to participate in $1Bn Bharti Infratel IPO.
Read More
Cypress buying Ramtron for $110M.
Read More
iRobot acquires Evolution Robotics for $74Mn.
Read More
Pre-IPO Nimble Storage raises $40.7Mn from Sequoia and Accel.
Read More
Virident Systems raises $26Mn from Sequoia, Mitsui & Others.
Read More
Nebula raises $25Mn from Comcast, Kleiner Perkins.
Read More
SnapLogic raises $20Mn from Ignition, Andreessen Horowitz.
Read More
Carlyle pays 35% share premium in vwd group takeover.
Read More
Xilinx acquires wireless backhaul IP provider.
Read More
eBay acquires shopping discovery site Svpply.
Read More
Market Intelligence
N e w C a p i t a l U pd a t e – S e p t em b e r 2 0 1 2
Chart 1.
US Smartphone Market Share
Chart 2.
Global Chip Sales – Americas Weaken
Sources: Scura Paley, comScore
Sources: Scura Paley, SIA, EE Times
Chart 3.
Chart 4.
Scura Paley New Electronics Index – Eq. Wt
Sources: Scura Paley, Capital IQ
Chart 5.
Scura Paley New Electronics Index – vs. S&P 500
Sources: Scura Paley, Capital IQ
Comparative Analysis of New Electronics
Sources: Scura Paley, Capital IQ
3
Market Intelligence
N e w C a p i t a l U pd a t e – S e p t em b e r 2 0 1 2
Notable Announcements in New Energy
Industry Update
U.S. thermal energy storage capacity to triple by 2020.
Read More
US solar installations continue to grow at record setting pace.
Read More, See Chart on Page 5
Energy management software powered by $1.22Bn in VC.
Read More
70% of municipal utilities could install smart meters by 2017.
Read More
China to invest $39.5Bn in PV during 2011-15.
Read More
China tops renewables attractiveness index.
Read More, See Chart on Page 5
Germany's clean tech industry to more than double by 2025.
Read More
>237Mn smart meters will be deployed in Europe by 2020.
Read More
China and Europe sign memorandum of understanding.
Read More
U.K. proposes incentives for home heating from biomass to solar.
Read More
Company Update
Chinese solar firms dropped from NASDAQ green index.
Read More
Siemens to Cut 615 US Wind Energy Jobs.
Read More
Mainstream gets Macquarie loan for wind farms & expansion.
Read More
Hitachi Zosen plans $1.5Bn offshore wind farms in Japan.
Read More
Fotowatio plans to build Australia's largest solar project.
Read More
GreenVolts loses ABB as investor, lays off bulk of staff.
Read More
GM losing nearly $50,000 on every Chevy Volt produced.
Read More
Smith Electric Vehicles halts IPO plans.
Read More
Vodafone Teams with IBM for smart home appliances.
Read More
GE launches demand response management technology.
Read More
New Capital Update
4
Blackstone acquires home automation giant Vivint for >$2Bn.
Read More
Blackstone exceeds $2Bn target for maiden energy fund.
Read More
EnCap Investments targets $4.25Bn for new upstream fund.
Read More
NewWorld Capital raising $300Mn green-tech fund.
Read More
Morgan Stanley leads consortium in $300Mn Chinese hydro deal.
Read More
Modular green homes start-up Blu Home raises $60Mn.
Read More
CIGS specialist Ascent Solar sees shares plunge after offering.
Read More
Suntech threatened with NYSE delisting.
Read More
Suzlon seeks more time to settle further $220Mn chunk of bonds.
Read More
McWane Acquires wireless smart grid solution co. Nighthawk.
Read More
Market Intelligence
N e w C a p i t a l U pd a t e – S e p t em b e r 2 0 1 2
Chart 6. U.S. Solar Installations
Chart 7. Renewable Attractiveness Index
Sources: Scura Paley, GTM Research, SEIA
Sources: Scura Paley, Ernst & Young
Chart 8.
Chart 9.
Scura Paley New Energy Index – Eq. Wt
Sources: Scura Paley, Capital IQ
Chart 10.
Scura Paley New Energy Index – vs. S&P 500
Sources: Scura Paley, Capital IQ
Comparative Analysis of New Energy
Sources: Scura Paley, Capital IQ
5
Market Intelligence
N e w C a p i t a l U pd a t e – S e p t em b e r 2 0 1 2
Notable Announcements in New Environment
Industry Update
PE investments in Environmental Services rise.
Read More, See Chart on Page 7
Refurb. Medical Devices market to be worth $8.5Bn in 5 years.
Read More, See Chart on Page 7
Investment into greener data centers to soar to $45Bn by 2016.
Read More
Water-tech outperforms other climate themes in Climate index.
Read More
Guangdong steps closer to carbon trading launch.
Read More
Hybrid medical imaging to spot tumors earlier.
Read More
China's stockpile effort could stabilize rare earth metals prices.
Read More
2,900 mines closed down in China's coal and rare earth region.
Read More
Brazilian government agrees to boost ethanol blend.
Read More
Govt. invests $73Mn in potable water plants.
Read More
Company Update
Lynas’ Malaysia plant receives temporary operating license (TOL).
Read More
Northern Minerals expands HREE target area.
Read More
Ford reducing rare earth metal use in 2013 electrified cars.
Read More
SocGen, GSK dropped from sustainability index.
Read More
IBA inks $50Mn Texas proton deal.
Read More
Baxter to pay Onconova $50Mn in Cancer Therapy Deal.
Read More
Caterpillar to provide $21Mn for Blue Sphere biogas projects.
Read More
Valero restarts ethanol plants in Indiana, Nebraska.
Read More
Biochemical group Elevance withdraws IPO.
Read More
Itron announces water fixed network in Western Australia.
Read More
New Capital Update
Harvest Partners hits record $1.1Bn fundraise for buyout fund.
Read More
Khosla Venture leads deal for agritech company Blue River.
Read More
Ludgate targets up to $300Mn for environmental growth fund.
Read More
Nord-Pas de Calais issues €80Mn municipal SRI bond.
Read More
PE investor Foresight backs £21Mn waste management plant.
Read More
WMS, Demeter Partners invest in environmental monitoring co.
Read More
CHS-backed Heartland Dental eyeing $1.4Bn auction sale.
Read More
Cinven completes £465Mn acquisition of Mercury Pharma.
Read More
Thoma Bravo to take Nasdaq-listed Mediware private for $195Mn. Piper Jaffray leads $30Mn Series D round for Torax Medical.
Read More
Read More
6
Market Intelligence
N e w C a p i t a l U pd a t e – S e p t em b e r 2 0 1 2
Chart 11. Environmental Services – PE Deals since 2008
Chart 12.
Sources: Scura Paley, Pitchbook
Sources: Scura Paley, Markets and Markets, DotMed
Chart 13.
Chart 14.
Scura Paley New Environment Index – Eq. Wt
Sources: Scura Paley, Capital IQ
Chart 15.
Global Refurbished Medical Devices Market
Scura Paley New Environ. Index – vs. S&P 500
Sources: Scura Paley, Capital IQ
Comparative Analysis of New Environment
Sources: Scura Paley, Capital IQ
7
Market Intelligence
N e w C a p i t a l U pd a t e – S e p t em b e r 2 0 1 2
Notable Announcements in New Finance
Industry Update
Alternative finance loan approvals increased in August.
Read More, See Chart on Page 9
U.S. debt collectors cash in on $1Tn in student loans.
Read More
Mega rounds growing phenomenon in financial services.
Read More, See Chart on Page 9
ABS market surges, with more than $7Bn in deals lined-up.
Read More
Payday lending ordinance passed by City Council.
Read More
California legislature approves three BHPH bills.
Read More
Rent-to-own housing on the rise in Winnipeg.
Read More
2Q subprime originations exceed pre-recession levels: Experian.
Read More
Moody's: U.S. banking outlook negative.
Read More
SEC fines NYSE $5Mn for giving clients preferential data access.
Read More
Company Update
Encore Capital, Portfolio Recovery among 100 Fortune's FastestGrowing Companies for 2012. Read More, Read More
US treasury launches $18Bn stock offer to slash stake in AIG.
Read More
CompuCredit tender offer for stock oversubscribed.
Read More
DFC global beats 2Q12 street estimates.
Read More
Credit Acceptance completes $252Mn Asset-Backed Financing.
Read More
Wells Fargo lends support to finance alternative EasyPay.
Read More
Marlin business services expands Healthcare Finance Group.
Read More
CareFusion takes lease question to SEC.
Read More
Nicholas Financial opens three new branches.
Read More
GM Financial Announces $1.3Bn Senior Subordinate ABS.
Read More
New Capital Update
8
Private-equity buyouts on track to reach highest total since 2007.
Read More
ADIA, GIC, Norges Bank buy $1.3Bn shares in China Pacific Ins.
Read More
TA sells stake in hedge fund K2 Advisors to Franklin Templeton.
Read More
GE reportedly considers selling $2.2Bn stake in Thai bank.
Read More
PAG closes Asia-focused buyout fund on $2.4Bn.
Read More
Affinity Equity Partners seeks $3.5Bn fund.
Read More
Partners Group raises $483Mn for senior debt financings.
Read More
Ventech closing €100Mn fund to invest in Europe and BRICs.
Read More
CVC said to sell 10% stake to three sovereign-wealth funds.
Read More
Mega transactions mask Middle East M&A deal slump.
Read More
Market Intelligence
N e w C a p i t a l U pd a t e – S e p t em b e r 2 0 1 2
Chart 16.
Loan Approval Rates
Chart 17.
Financial Services Deals (by Deal Size)
Sources: Scura Paley, Biz2Credit Small Business Lending Index
Sources: Scura Paley, Pitchbook
Chart 18.
Chart 19.
Scura Paley New Finance Index – Eq. Wt
Sources: Scura Paley, Capital IQ
Chart 20.
Scura Paley New Finance Index – vs. S&P 500
Sources: Scura Paley, Capital IQ
Comparative Analysis of New Finance
Sources: Scura Paley, Capital IQ
9
Market Intelligence
N e w C a p i t a l U pd a t e – S e p t em b e r 2 0 1 2
Notable Announcements in New Media
Industry Update
Corporate VC Internet deals hit a high in 2Q12.
Read More, See Chart on Page 11
U.S. Mobile Ads: Twitter sales are 2x that of Facebook.
Read More, See Chart on Page 11
Mobile app market to almost double this year to 45Bn.
Read More
Fake social media ratings, reviews to be 10- 15% by 2014.
Read More
Google sites top U.S. online video content properties.
Read More
Pinterest becomes 4th largest traffic driver worldwide.
Read More
comScore: 4 out Of 5 smartphone owners use device to shop.
Read More
Apple tops mobile ad impressions, lead to grow with iPhone 5.
Read More
20% of the U.S. can’t watch online video in HD.
Read More
Iran announces plan to launch domestic internet by March 2013.
Read More
Company Update
Facebook turns off facial recognition in The EU.
Read More
Apple working on Pandora-like service.
Read More
Nokia launches free music streaming service in U.S.
Read More
Google shopping to switch to paid model in october.
Read More
Twitter to dump third-party image hosts from apps.
Read More
Square is now valued at $3.25Bn.
Read More
VEVO: 40Bn videos watched last year, mobile traffic doubled in 2Q. Google & Harris Interactive launch new Consumer Research Tool.
Read More
Read More
PlaySpace to expand its social games to U.S., Latin America. Read
More
Reddit reached 3.4Bn Pageviews in August.
Read More
New Capital Update
10
Trulia stock surges more than 40% in first day of trading.
Read More
Square closes $200Mn Series D From Starbucks, Citi & Others.
Read More
Desire2learn raises $80Mn from NEA & OMERS Ventures.
Read More
Social Finance lands $77Mn from Baseline, Renren.
Read More
Quirky bags $68Mn from A16Z, KPCB, Norwest and RRE.
Read More
Zendesk raises $60Mn from Redpoint, Goldman & Others.
Read More
SingTel acquires social photo aggregator Pixable for $26.5Mn.
Read More
Photo- And Video-Sharing app Mobli raises $22M.
Read More
Google acquires Photoshop competitor Snapseed.
Read More
CVC, Goldman propose debt-for-equity swap for Nine Ent.
Read More
Market Intelligence
N e w C a p i t a l U pd a t e – S e p t em b e r 2 0 1 2
Chart 21.
Corporate VC Internet Deals
Chart 22.
US Mobile Ad Revenue – Market Share
Sources: Scura Paley, CB Insights, Techcrunch
Sources: Scura Paley, eMarketer, Techcrunch
Chart 23.
Chart 24.
Scura Paley New Media Index – Eq. Wt
Sources: Scura Paley, Capital IQ
Chart 25.
Scura Paley New Media Index – vs. S&P 500
Sources: Scura Paley, Capital IQ
Comparative Analysis of New Media
Sources: Scura Paley, Capital IQ
11
Market Intelligence
N e w C a p i t a l U pd a t e – S e p t em b e r 2 0 1 2
Important Disclosures
Scura Paley is a member of FINRA and SIPC.
This market intelligence is not an offer to sell or the solicitation of an offer to buy any
security.
Neither Scura Paley nor its affiliates holds any beneficial ownership in any of the
recommended securities and does not hold 1% or more of the subject company’s
equity securities.
Neither we, nor any member of our household, nor any person that depends on U.S.
for financial support, holds a financial interest in the securities of this report or
related companies.
The persons who prepared this report do not receive compensation based on
investment banking revenues, nor receive compensation directly from the subject
company.
Scura Paley has not received compensation for investment banking activity or from
any activity from any company mentioned in this report within the twelve months
preceding publication. However, Scura Paley does expect to receive or seek
compensation for investment banking activity in the three months following
publication.
Scura Paley does not act as a market maker in the stock of the subject company.
To the best of our knowledge, there are no other actual, material conflicts of interest
to disclose.
All Rights reserved. Scura Paley Securities LLC
12
Market Intelligence
