NEW YORK, July 17 (Reuters) - Blackstone Group LP, the world's largest alternative asset manager, said on Thursday its second-quarter earnings jumped 89 percent year-on-year as its private equity profits soared, marking its best second quarter ever.
Blackstone said economic net income (ENI), a metric of its profitability that takes into account the mark-to-market valuation of its portfolio, was $1.33 billion in the second quarter versus $703 million a year ago.
That translated into ENI per share of $1.15, more than the 71 cents that analysts forecast on average in a Thomson Reuters poll
For those that are listening to chicken little headlines check Bloomberg to quote"Net income fell to $2.29 billion in the second quarter, or 19 cents a share, from $4.01 billion, or 32 cents, a year earlier, the Charlotte, North Carolina-based firm said today in a statement. Earnings excluding litigation costs were 41 cents a share. The average estimate of 24 analysts surveyed by Bloomberg was 29 cents"
Gets buyout offer from Germany's ZF ZF Friedrichshafen, which makes steering systems and chassis components, values TRW at around $11 to $12 billion although no specific price has been discussed, a person familiar with the matter told Bloomberg.
Whats the matter with you calling people names post a link otherwise just your opinion if cant post link at least name source otherwise just PUMPING
According to Seeking Alfa "Over the past five years, Blackstone has grown EPS at an astounding 30.47% annually. With a rapidly growing market and industry, as well as significant competitive advantages, Blackstone's revenues should continue to grow almost as rapidly over the next five years. Since the firm has relatively low variable costs due to its fee-based business model, expenses should rise approximately in line with revenues. Based on these assumptions, I would expect EPS to grow at about 24-26% annually over the next five years. Currently, the stock has a P/E TTM of 15.3. In five years, I would expect this to decrease to about 12 (to account for lower growth prospects in the distant future). In addition, the stock has a dividend yield of 4.25%, which I expect to remain steady. Summing this up gives a total expected return of about 25% annual EPS growth + 4% dividend yield - 12/15 * 25% EPS (for P/E contraction) = 24% annual. This represents almost 200% upside in five years, giving the stock a five-year price target of $96 per share, compared to $32 per share right now. The current PEG ratio of 0.47 supports this growth-at-a-reasonable-price (GARP) investment thesis.
Overall, Blackstone Group is a high-quality, leading firm in a hot, fast-growing industry. The company's brand name and consistent innovation, as well as favorable secular trends, give it a large future growth runway. The current stock valuation does not reflect the company's growth prospects, leading to 200% upside over the next five years."
The roots of this crisis go back to the Carter administration. That was when government officials, egged on by left-wing activists, began accusing mortgage lenders of racism and "redlining" because urban blacks were being denied mortgages at a higher rate than suburban whites.
The pressure to make more loans to minorities (read: to borrowers with weak credit histories) became relentless. Congress passed the Community Reinvestment Act, empowering regulators to punish banks that failed to "meet the credit needs" of "low-income, minority, and distressed neighborhoods." Lenders responded by loosening their underwriting standards and making increasingly shoddy loans. The two government-chartered mortgage finance firms, Fannie Mae and Freddie Mac, encouraged this "subprime" lending by authorizing ever more "flexible" criteria by which high-risk borrowers could be qualified for home loans, and then buying up the questionable mortgages that ensued.
All this was justified as a means of increasing homeownership among minorities and the poor. Affirmative-action policies trumped sound business practices. A manual issued by the Federal Reserve Bank of Boston advised mortgage lenders to disregard financial common sense. "Lack of credit history should not be seen as a negative factor," the Fed's guidelines instructed. Lenders were directed to accept welfare payments and unemployment benefits as "valid income sources" to qualify for a mortgage. Failure to comply could mean a lawsuit.
Frank doesn't. But his fingerprints are all over this fiasco. Time and time again, Frank insisted that Fannie Mae and Freddie Mac were in good shape. Five years ago, for example, when the Bush administration proposed much tighter regulation of the two companies, Frank was adamant that "these two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis." When the White House warned of "systemic risk for our financial system" unless the mortgage giants were curbed, Frank Now that the bubble has burst and the "systemic risk" is apparent to all, Frank blithely declares: "The private sector got us into this mess." Well, give the congressman points for gall. Wall Street and private lenders have plenty to answer for, but it was Washington and the political class that derailed this train. If Frank is looking for a culprit to blame, he can find one suspect in the nearest mirror.
Yes thanks to Clinton for lowering mortgage standards and Dodd and Frank opposing reining in Freddire and Fannie
Don't know about that but also heavy options trading. Don't put much into pre or ah but volume was big some things up, todays volume up 2 million over daily average