For what it's worth, we're only in the "first inning" of large highly visible companies going private. Many would think that the recent rise in large cap stocks would have taken the vig out of the game, but from where I sit I see some big name mega cap stocks that would make perfect buyout candidates. Q1 of 2007 will see the largest LBO in history. This isn't even going out on a limb.
It will be great to hear how the levering of corporate america is amoral, greedy and going to lead to ruin. Be still my bleeding heart. Call it financial engineering (people think that's an oxymoron) but companies saddled with some debt become very focused on what works.
If you're looking for lazy management teams look no farther than companies with no debt and copious amounts of cash that also pay no dividend to boot. Run for the hills from these unless you feel you can affect change.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment