Does anyone here remember the GOOG IPO and how the IPO price came down from $115 - $120 to $85. GOOG opened at about 100 went to 113 and then back to 98. No one can claim Blackstone to be another GOOG but the way it's trading is almost remeniscent of the Google IPO.
A few things to keep in mind: BX has given a Investment Return of 25% - 30% over the last 20 years. That is right - 20 years. It means that it has legs to ride out any so called debt crunch that the market is imposing. Money Managers in every area are aflush with funds and leveraging (leverage is required for every private equity deal) has become expensive. Markets are overly concerned with the debt leveraging that has been done.
Two things will affect BX. The tax rate issue (15% vs 35%) and they are lobbying against it. The other one would be earnings. In my humble opinion investors will be shocked by how good the earnings will be. Read their prospectus and look at their growth.
BX has fallen from their IPO price. If you buy now, you get a better deal than the Chinese goverment (they bought 3 Bil dollars worth BX). Buy BX.
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