If you were a PE fund that just raised a new fund or a company lucky enough to have ample cash who would you be eyeing in this environment?
I’d be looking for something like Zillow. Decent market penetration and name recognition, low valuation, and some monetization processes that could probably be improved by going private.
Laundromats! They have great margins.
1 Like
stable cash flows. margins below competitor. great assets to sell. room to lever. debt that can be refied lower. weak management. good growth prospects. or companies that is the bad side of their busienss cycle.
usually takes omething private to remove public scrutiny. fixes the debt. fixes the operations. levers it up. then ipos during good times
1 Like
Re zillow, I don’t see it but I could be missing something. I think delta could be in play - nearly 1k jets and a 12bn pension, some corporate raider could come in 1980s style and make a swift killing (a la BlueStar Airlines if anyone remembers that movie)
i imagine companies with a lot of debt, with stocks going to 0 will be perfect target. both equity and debt will be bought at a signifcant discount. then once the companies turn positive. they will relever it and ipo it.
In mining, I’d bet heavily on First Quantum (FM CN) being owned by one of the majors when this thing is all said and done.
You know when I was in college I bought a precious metals mining fund for like 2000 dollars. To this day I still own it. No joke. I am down 40 percent since 2012. I keep it as a reminder to stay away from that ■■■■.
You know when I was in college I bought a precious metals mining fund for like 2000 dollars. To this day I still own it. No joke. I am down 40 percent since 2012. I keep it as a reminder to stay away from that ■■■■.
Jesus so that was when I got behind the curb. When I was in college, I bought keystone racks and tried studying for my macro econ exam!
Copper isn’t precious metals, anyhow tons of people make money in metals it does require an advanced skillset though. Like complaining you bought tech 1999-2000 and got crushed. The lesson shouldn’t have been tech is bad, it’s don’t buy bubbles like a n00b.
Yea fair enough. To be honest I can’t even recall the metricS while in college. I remember just buying the top performing fund in the last 10 years or something stupid like that.
Haha, that’s fair, we’ve all done it at some point or another and will probably do it again.