Aren't these the times PE load up on fire sales? Yes, they can't exit in these environments, but last quarter's call seem to indicate lots of "dry powder" and analysts worried about whether they can even deploy it all. Well, in this global carnage, doubt BX will have trouble finding things to buy at bargain prices to exit when things turn in a year or two. Gotta be in PE for the long run.
Did I mention LOCO is a domestic play, immune to the currency commodity collapse in the world? Further, oil prices at decade lows can only benefit LOCO...
The whole sector is pretty much up today. LOCO down 5% is rough, especially given that their valuation now is pretty cheap for a company expected to earn close to $1/sh next year and expanding from a regional chain to national chain. Given the company is solidly profitable and has great growth ahead, why would it continue to sell off at these levels?
Reading CG last earnings transcript, management said they have been very slow to deploy capital this year because they saw valuations as being too high, but at the same time, they were raising record cash from investors, so this is opportunity for them to finally pick up stuff on the pullback for the next up cycle, which may be a few years out.
As for oil, less than a tenth of their portfolio is exposed to it, but it still hurts. The positive is that CG did do a bunch of exits in the first half when markets were strong, which is why they were also able to pay such a large dividend.
The scary thing is the S&P is flat to down 1% or so this year and CG is down like 20+%. Hard to imagine if the S&P would to see a correction....
looks like a buy opportunity that will pay you close to 10% dividend to wait it out. It seems that different PE firms come in and out of favor, maybe based on if they bought some good firms or not in their portfolio. Tides shift, so looks like a good buy opportunity, unless I'm missing some big risk at APO.
Anyone know why APO dropped so much in last couple of days on no news and flat overall stock market? Doesn't APO's massive credit division benefit in a rising rate environment? Rates based on treasury yields are at year highs so why is APO trending toward year low?
Looks like some small insider buying activity recently. Is there something we should be worried about with the declines or is this just a great buying opportunity going into a rising rate environment?
Most PEs are just off highs for the year, APO is close to lows year to date. I thought rising rates were good for companies like APO, which had a huge credit division. Similar to how banks benefit from rising rates? Lawsuit is related to the price they offered for a company, correct? That isn't a damaging lawsuit.
Last year Carlyle was hated and had a bad year. I guess this year APO is going to be in the penalty box.
Mixed bag when it comes to analysts' expectations. Most recently, Piper Jaffray's initiated (06/02/15) APO with a $33PT. Morningstar, which I think has the least conflicts of interests, has a $42 PT but is clearly wrong. CS has a $23PT, Citi $25PT, Bofa $27PT.
Interesting that the company filed to sell shares at these low prices. You would think they would want to do so when the stock price is on an uptrend.
Most of the shares coming from insiders, so why not just put the company up for sale? Company is selling for low multiples and if insiders want to exit, just sell to a KND.
Looks like global markets have sold off lately and will continue. CG is flush with dry power, so why the massive selloff in CG and PE in general? This should be an opportunity as valuations come in...
What's up with this POS? Whole sector is up like 3-4%, but LOCO down 3%. Is this company really the worst in the sector and is the COSIs or a Quiznos??? Thank God the market is up like 600pts, otherwise, LOCO would probably have fallen 20%. Clearly market sees their fast casual concept as one of the failing fast concepts.
I guess I should have visited a store to see the emptiness before I bought this thing... Damn Jeffries, they just have buy ratings on everything...