How do these guys do their valuation??? Telling clients to sell GM because they are overvalued and buy Tesla because TSLA is undervalued by over 50%??? Seriously????
It is not possible for this to take off significantly and here is why:
- No opportunity for a buyout as the Board/major shareholders created this company to benefit the parent (read up on the Portnoys and other related parties)
- FVE will never accumulate significant real value. If they become very profitable, related parties will extract value out of the company by increasing rents or fees
- If stock does take off for some odd reason, additional shares will be sold into the market and be used in ways that don't benefit shareholders, but management and conflicted parties
I've been a shareholder for a while myself. But I've learned my lesson of the purpose of this company and have sold when it creeps up and buy when it drops into the mid 4s. This is a textbook case of the worst corporate governance and therefore it is not an investment, but a trading vehicle.
Totally agree, companies like FVE should not be publicly traded as its sole purpose for existence is to benefit conflict of interest related parties. This is no secret anymore, hence the value the market places on this. But it does trade in a range and it definitely isnt going bankrupt anytime soon so people will trade it for a profit.
Happens every time. You see a nice runnup to the 6 range and then a collapse back down to $4.50. Another 10% drop and then back up the truck. This is a trading vehicle and not an investment. It is an investment for the Portnoys to enrich themselves, as we all know by now. But it doesnt mean there isnt opportunity to take advantage of a trading range.
This is by far the worst managed PE firm out there. Today's selloff when the market was up like a 100pts shows that the market doesnt like this new management coming in either. Stock looks to head back to $25 just like last year when it touched in the high 30s early in the year. Might as well sell now and buy back in the fall at $25 for the year end rally back to the 30s. Horrible investment...
They only have access to overpriced IPOs where they needs suckers to buy in at an inflated price. Stay away, they dont get the alibabas and twitters, they get what the wealthy dont want.
back to $25 like last year when it retreated from the high 30s? That would be a treat. Id mortgage my house to buy at $25
PBR wont need to issue bonds for a while now so the S&P downgrade has no impact on their cost of debt. Not sure why PBR taking a hit in afterhours. Market should be relieved PBR issued billions in debt prior to the downgrade. Not much management is doing right but at least their timing of their bond sales were perfect.
I think they own over 30 million shares today so if they sell 10 million, they still have 20 million shares riding on Noranda doing well. Just like they pumped up the price recently to get rid of 10 million shares, they will do it again to unload the remaining 20 million. Private equity rarely loses money. They will bail their remaining 20 million shares at a higher price.
why does it matter if they profited or not if they sell at current prices? Whether or not they made a profit shouldnt impact the price of the shares going forward and the outlook of the business. I think the key is Noranda isnt issuing additional shares on the market at bargain basement prices. If a shareholder like you or me decide we want to go sell our shares at a low price to someone else, really doesnt impact the long term share price.
NOR isnt issuing new shares I dont think. Apollo is selling some of their existing stake. If it was a new share issuance at a 30% lower stock price, that would suck for shareholders and be highly dilutive, but this situation is apollo unloading their stake at a steep discount to current price.
If the sale does not indicate an impairment to NOR's business and it isnt dilutive to shareholders, stock should bounce back pretty quickly after the 10M shares are absorbed.
deal is not dilutive which is good. If Apollo wants to sell at $3.50 a share, it will temporary cause shares to dip, but since it isnt dilutive (not issuing new shares at a low price), doing this offering at a bargain basement price only hurts Apollo. Still not happy though that 20-30% of the value of NOR is going to be wiped out at least for the near term as Apollo unloads at all cost.
What fund manager would buy new shares in an equity issuance with PBR's track record? Every issuance has burned investors. I highly doubt there would be takers of additional shares at a reasonable price. They are better off issuing debt.
Why trade publicly and have to do SEC filings and all that. Just nationalize and save a lot of headache, administrative work, and investors complaining. No reason at all to trade publicly.
If PBR is set up for political purposes to subsidize and bring Brazilians really cheap oil prices to garner support for the government, then delist PBR and operate it as not for profit. Companies like this seriously do not deserve to be listed on exchanges to scam shareholder $ to subsidize oil prices for Brazilians.
I'm disappointed with CG management and it really shows in their relative performance compared to other PE firms. Now that insiders are bailing, I'm considering bailing myself and buying Blackstone or KKR instead. It has been a frustrating hold and I definitely made the mistake of choosing CG over other PE alternatives.
Bg mistake not to go with Blackstone instead of CG. Blackstone rallied from the low teens to pretty much now exceeding CG's price in the past yr or two. CG is definitely by far the worst performing PE. KKR, Apollo, BX, all have done much better.
And what does management do, they unload their shares by the hundreds of millions. Why should anyone buy CG when they could buy other PEs that take care of their shareholders?
It does increasingly look like that is the path headed as government forces PBR to sell gasoline below cost. PBR is not run like an independent public company for the benefit of shareholders. It serves national interests. Hopefully the government gives shareholders $12/sh to nationalize just for goodwill and to prevent loss of foreign capital.