What’s your big gamble? (Volume 2)

[anonymous-user]

petemurphy said:

anyone access to the times?

re AA

An aggressive US hedge fund could seek to join a takeover of the AA, the beleaguered car breakdown service.

Davidson Kempner, which has a 15% stake in the AA, is understood to have hired the investment bank Moelis to advise on options as talks drag on between the debt-laden company and two private equity suitors, Warburg Pincus and TowerBrook.

dont have access to the rest but will buy the paper later. sounds good - is that a takeover competitor or some nasty fund that will want it for a sp of 2p?

Dunno but it'll force the current bidders to put their cock on the block. Good news imho.

[500 Miles]

[500 Miles]

Sounds like they are just looking to join the current consortium as opposed to being another entrant putting an alternative bid in.

Still promising.

[vulture1]

Why are private equity firms allowed to buy companies and load them up with debt. It happened to toys r us as well they were doing ok before being lumped with the parent companies debt

[petemurphy]

500 Miles said:

Sounds like they are just looking to join the current consortium as opposed to being another entrant putting an alternative bid in.

Still promising.

Can but hope

[anonymous-user]

vulture1 said:

Why are private equity firms allowed to buy companies and load them up with debt. It happened to toys r us as well they were doing ok before being lumped with the parent companies debt

Totally agree with that. Seen it happen with a company I worked for years ago. Ended badly. As far as I can see they don't really "buy them". It's more the case they borrow money from banks then make the company own that debt and pay it off.

If the PE company borrowed the money themselves and kept the debt in their name and serviced the debt from profits from the company through divvies then that seems fair enough. But companies like AA were good operating companies saddled with PE debt and consequently struggle to get through bad times.

[Simpo Two]

dingg said:

I thought USA was fked we're in an equally ste position....

So you're saying that the USA is in a 'ste position' (for not taking it seriously enough) - and that we are in an 'equally ste position' - for taking it too seriously?

[EarlOfHazard]

SYME is launching in the US market

https://www.share-talk.com/alessandro-zamboni-foun...

[dingg]

Simpo Two said:

dingg said:

I thought USA was fked we're in an equally ste position....

So you're saying that the USA is in a 'ste position' (for not taking it seriously enough) - and that we are in an 'equally ste position' - for taking it too seriously?

No this is what I said :-


100% bang on but Boris doesn't have the balls to do what's needed, he's proven himself to be an oaf.

Karmer and Labour isn't an option at the moment

I thought USA was fkked we're in an equally ste position....

[Adam B]

EarlOfHazard said:

SYME is launching in the US market

https://www.share-talk.com/alessandro-zamboni-foun...

Have we figured out whether it’s a Ponzi scheme yet? Do they have clients and a real revenue stream?

[Simpo Two]

dingg said:

No this is what I said :-

Ah, so your summary is not based on how well or badly the virus has been dealt with, you are just saying we are 'fkked' because you don't like either of the party leaders.

Edited by Simpo Two on Sunday 1st November 16:58

[Adam B]

MikeStroud said:

vulture1 said:

Why are private equity firms allowed to buy companies and load them up with debt. It happened to toys r us as well they were doing ok before being lumped with the parent companies debt

Totally agree with that. Seen it happen with a company I worked for years ago. Ended badly. As far as I can see they don't really "buy them". It's more the case they borrow money from banks then make the company own that debt and pay it off.

If the PE company borrowed the money themselves and kept the debt in their name and serviced the debt from profits from the company through divvies then that seems fair enough. But companies like AA were good operating companies saddled with PE debt and consequently struggle to get through bad times.

An area I know a bit about, the reason is leverage.
PE firm raises say £500M and identifies 3 undervalued targets for sale for £300M, if all will earn a good profit it will borrow the £400M shortfall or co-invest with other PE funds / banks.

PE funds want to make money, which means making profit for their investors which means buying companies and making them more valuable. Any value is net of any debt the company has, so over-borrowing is self-defeating.

Debt is not necessarily bad, if a company needs investment you raise equity or borrow, borrowing has tax advantages as interest is tax deductible and dividends are not. Google “optimal gearing”.

PE done well has a positive impact IMHO, taking badly run or under-invested companies and improving them, and securing their future. “Done well” is key though, have to look motivations of target BoD and timing has to be right.

Edited by Adam B on Sunday 1st November 17:45

[I Love Cake]

Worked my socks off this week, I have a spare £1200 to invest.

Thoughts please folks.

Top up BOO
Get back in SNG
Buy NIO (Although I can't in my HL account)
Take a punt on AA

Coke n strippers? Ha!

I'm already in GGP, EUA & KOD, so I don't really want any more mining shares.

Thanks in advance.

[g4ry13]

I Love Cake said:

Worked my socks off this week, I have a spare £1200 to invest.

Thoughts please folks.

Top up BOO
Get back in SNG
Buy NIO (Although I can't in my HL account)
Take a punt on AA

Coke n strippers? Ha!

I'm already in GGP, EUA & KOD, so I don't really want any more mining shares.

Thanks in advance.

Why can't you buy NIO on HL?

Coke n strippers sounds the best option tbh.

[I Love Cake]

g4ry13 said:

Why can't you buy NIO on HL?

Coke n strippers sounds the best option tbh.

It says 'The selected stock cannot be traded in this account".

[g4ry13]

I Love Cake said:

g4ry13 said:

Why can't you buy NIO on HL?

Coke n strippers sounds the best option tbh.

It says 'The selected stock cannot be traded in this account".

You have a regular share account?

You would need to complete a W-8BEN form too unless you've previously bought US stocks.

[I Love Cake]

g4ry13 said:

I Love Cake said:

g4ry13 said:

Why can't you buy NIO on HL?

Coke n strippers sounds the best option tbh.

It says 'The selected stock cannot be traded in this account".

You have a regular share account?

You would need to complete a W-8BEN form too unless you've previously bought US stocks.

Ahhhh, that'll be why. I was trying to do it while working on Friday, I didn't have time to call HL.

Thanks for the advice, it's appreciated.

[500 Miles]

I Love Cake said:

Worked my socks off this week, I have a spare £1200 to invest.

Thoughts please folks.

Top up BOO
Get back in SNG
Buy NIO (Although I can't in my HL account)
Take a punt on AA

Coke n strippers? Ha!

I'm already in GGP, EUA & KOD, so I don't really want any more mining shares.

Thanks in advance.

From a risk reward perspective it would be Boo for me... the others could increase significantly more than Boo however also more chance that the others could go bang... obviously you shouldn’t listen to a person who is advocating a company that allegedly uses slave labour and whose auditors have resigned due to alleged money laundering...

[I Love Cake]

500 Miles said:

I Love Cake said:

Worked my socks off this week, I have a spare £1200 to invest.

Thoughts please folks.

Top up BOO
Get back in SNG
Buy NIO (Although I can't in my HL account)
Take a punt on AA

Coke n strippers? Ha!

I'm already in GGP, EUA & KOD, so I don't really want any more mining shares.

Thanks in advance.

From a risk reward perspective it would be Boo for me... the others could increase significantly more than Boo however also more chance that the others could go bang... obviously you shouldn’t listen to a person who is advocating a company that allegedly uses slave labour and whose auditors have resigned due to alleged money laundering...

Hahaha take the fun option is what you're saying. It certainly seems the safest bet, as more people will clothes shop online now with the lockdown.

Thank you for your thoughts.

[Adam B]

I Love Cake said:

Hahaha take the fun option is what you're saying. It certainly seems the safest bet, as more people will clothes shop online now with the lockdown.

Thank you for your thoughts.

I wouldn’t say BOO is the most fun from that list! And zero chance of NIO going pop, but not sure if that boat has sailed, up 900% this year, is it worth 38bn?