And in exchange the government leaves them alone. Kind of like apple investing a billion in a car service over there. Does anyone think that apple wants to be a car service. Had to be a way to make nice with those in charge. They should be buying land over here so when their currency devalues, it would act as a hedge for them.
First the company pays a huge amount of money for some real estate to build their world headquarters from the government. The government was fine with that. But now the government wants to shut down the company moving over there. Strange. Now I worked in the foreign currency business for about 14 years, a 3 or 4 billion dollar deal will not have any significant affect on the currency rate. It is a small transaction. If you bundle 20 deals worth hundreds of billions, thats a different story. I'm glad its falling apart, I got my wish. But you know what they say"be careful what you wish for." Time will tell.
I'm watching the intro and thinking with my luck its goona be lakeland. Huge sigh of relief when it wasn't. Maybe this will benefit us, cant hurt as long as ours are good. Still wish a big company with deep pockets would buy us. Zirca virus scare is the latest scare, get me to 16 bucks and i'm out. I was a week and a half away from selling in December, i wanted to be in it for a year for tax reasons, and it tanks. Son of a B.
People with assets are leaving NJ for 2 reasons, estate taxes and real estate taxes. I'm not talking about rich hedge fund people but regular people. If you own a house, a few investments and a life insurance policy, your family is going to get hit with at least a 11% tax on anything over 675 thousand, a very low number. I believe it is progressive as the estate gets larger as well. And real estate taxes are insane compared to other states. A 550,000 house in Montclair NJ can have taxes of 17-18 thousand a year.I don't know how other states pay their teachers? About 75% of our tax bills are for schools and almost all of that goes to salaries and benefits and pensions. Right now people with assets are leaving NJ and people with little to no assets are coming in, a recipe for disaster. I know , I live here. For now.
I'm kind of winging this but if memory serves correctly the executives of the company had control of a large majority of the shares. So they can basically do what they want. They aren't feeling the love over here and I believe they already had financing lined up to take it private. Their plan is to have a few years of strong growth then go public over there supposedly for a massive premium. Things have changed in China since then, I'm not sure banks are throwing around billions at anybody with a plan these days, so maybe financing will fall through. So for now it benefits the management to release bad information and downplay any positives to keep the shares down, try to make us feel good about 68 bucks a share.
I still hope the deal falls through. Last quarter , crazy growth again. No reason this company cant be a monster in 5-10 years. A billion people is a really big number.