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"With such a disparity between public and private multiples, it’s a reasonable fundamental approach to believe that in this environment, the public company valu
by dougmccune 11y ago
"With such a disparity between public and private multiples, it’s a reasonable fundamental approach to believe that in this environment, the public company valuation will come up or the company will be acquired."
How is it that the other scenario (that the private valuation is illogical, unsustainable, and patently absurd) isn't the more obvious answer?
- davidu 11y agoBoth points of view can be accurate / true, and probably are.
- davidu 11y agoBoth points of view can be accurate / true, and probably are.
- rancur 11y ago>How is it that the other scenario (that the private valuation is illogical, unsustainable, and patently absurd) isn't the more obvious answer? this was never the question. the question was how to make money off this absurdity. Like Greece. Country was and is a mess, and should have stayed separate. But some people might be able to get out ahead by clamoring for bailouts under the guise of 'we didn't know' later, so they invest. Like student loans. Government was backing them while someone else gets the interest, so obviously someone else grants them. Like FM&FM. Government was granting preferred lending status to subsidize housing, so bad loans were issued.