I thought BX did a nice job building up Hilton but the results were far from spectacular based on the IPO. If $2.5 billion is 25% of the company(as BX suggests), their $10 billion investment has lost considerably from the $27 billion they spent 5 years ago.
Agree with your fundamental view but recall a strong commitment to maintaining the dividend about one year ago ...then they cut it by about 50% again.
issue 11/21/2013, is a worthy read for those following the developments. The article was written by Ronald Barusch. My take is the Corvex takeover isn' t the slam dunk most on here think it is but read it yourself and draw your own conclusions.
A few years ago, Duke Realty(DRE--not dummies) unloaded huge volumes of office buildings and reinvested in other property types. Why? The commercial office building market sucks. SIR's properties will similarly sour over time. Corvex is untrustworthy and the typical investor, not given to honest analysis, blames CWH for what is a sorry investment environment for office buildings. It boils down who owns the most shares. Don't bet against Portnoy and company...you underestimate them.
Made about 20% within one year....sold out after hearing Roberts' plan. Might buy if/when it gets lower.
STAY has had bankruptcy in its past and Hilton was teetering at one time with its debentures selling at $.40 on the dollar. BX is unloading in an exhilarated market. I'll examine the investments but with skepticism.
Everyone should work. If they aren't working in the private sector, let them work for the 21st Century WPA. Why not? Business wants to cherry pick their employees, privatize the best ones, socialize the losers to the taxpayers. Minimum wage beats the $800 per month temporary unemployment compensation. Business is on the gravy train.
What people don't realize: population growth globally has been in the billions over several decades; manufacturing and agricultural efficiency over a few decades has increased astronomically. What sum of this is there are billions unemployed and in poverty amidst of those few with enormous wealth. But as long as the rich can demonize the have nots, unions and foreigners, the rich control.
Canadians live in Florida during the winter because it ....is maybe warmer? There are political conservatives that will stretch any evidence to make political points.
Labor and management relationships should be better managed. Both sides have had their share of abuses. Workers should be represented within a framework of not just themselves but for the overall good.
Canadians in Palm Springs in the winter? Likely, they are wealthy and have that sort of bias. If a poor person can't afford care, their options? If the Canadians have long waits, they can build a few more hospitals, train staff. There is plenty of wealth there. Don't they have a conservative Prime Minister? He wouldn't be undermining the health system by restricting the budget for care for ideological reasons would he?
among Canadians. Google search multiple times and you will find this is accurate. Do some fact checking vs. listening to Rush, Fox News, Beck, etc. They get rich off your ignorance and prejudice. While you are at it, check their lies and credibility via google search. It is Ok to have an opinion supported by evidence but the public is just....GULLIBLE! These people say anything and you teapartiers just lap it up.....remember Jesus, Freedom, guns, drill and pollute. God bless America! What form of Yiddish did that snake speak(Genesis)?
80% went bankrupt. Why is that? There is no assurance they can raise capital at a cost ensuring a positive spread on assets. They are constantly having to raise money to pay the dividend....eventually it catches up. Those who are long are just like tea party suckers.
Jesus, freedom, constitution, teaparty, drill baby drill. The office market sucks but as PT Barnum suckers go....they're hot, confident, dropouts selling ice to eskimos buy buy buy.
The issue isn't so much about personal initiative or the assumption people are lazy. It is about having affordable health care because it is prohibitively expensive for significant treatment. The naysayers of Obamacare don't comprehend the loopholes, collaboration of business and lawyering loopholes employed by private insurance companies, to preserve tax writeoffs for employers. The status quo was good for business(fire those who are high risk--old and sick---just a coincidence?) leaving them at the mercy of the health insurance industry, their profits their lawyers. Now there are insurance coverage standards, businesses must pay somethingto contribute. But that would be details, something old folks and the tea party ideologues refuse to examine. Not to worry to those who believe Skydaddy will take care of you.
Sad about losing the quibs but glad the President will enable someone to get health care that couldn't afford it.
VZ has issued a bunch of debt in last couple of days. Not sure the yields on them but 10 years were about 5% and longer terms higher. Preferreds of any stripe as do bonds have an interest rate and credit risk. Income investments I like: BDJ(closed end fund that yields 7.5% trading at about a 10% discount). It is an option income fund. The income off options and dividends alone comprise about 75-80% of their distributions. I also like Blackrocks other option income closed end funds. Other cef's on the income side or bond side I own are PSF and DSU. I' d be a bit cautious on reits and mlps until there is more clarity on pass through tax policy. I also own a little BX common and lots of HLN quibs.
Background: MBA Accounting
I wouldn't assume the quibs will be called. Investment grade preferreds are now yielding around 7%, an after tax cost of capital which exceeds the 8% quibs. VZ's The $80-90 million quibs outstanding is chump change. Whats more, there were private negotiations about Hiltons debt with the government during and after the crisis about the debt overhang with the Lehman bankruptcy. I've never seen details of the deal but there was some loan forgiveness in exchange for something. There is increasingly a capital squeeze going on. Just look at what has happened to preferreds over the last 6 months--thus the reason for the IPO. It is premature to determine the value of the IPO but suffice it to say, BX will retain a large interest in the public company and there will be plenty of debt after the issue. My average cost of 8000 quibs was $8 and I, too, enjoyed the ride.
Perhaps it is a bubble. The market has valued VE 40-50% up or down over the last few years. It should be said that VE is very good at what they do, have resources in abundance and its a darn good biz. We all take our shots.