Anyone buying into the Blackstone (BX) IPO?

[Carlmichael]

What kind of options would one buy to take advantage of this anticipated increase?

[Carlmichael]

What kind of options would one buy to take advantage of this anticipated increase?

[HereWeGo]

Well, Carl, I bought in at the opening of 36.45. I can’t believe I just bet against Congress … cmon W, wield that veto pen.

[HereWeGo]

Well, Carl, I bought in at the opening of 36.45. I can’t believe I just bet against Congress … cmon W, wield that veto pen.

[capeman]

Most of the increase will be priced in. You can trade calls to play spreads on expected increases. Since you seem new to it you should keep it small and only play with the lunch money to get an idea of the game. It is something that takes a while to get used to and just learning the subtleties could put you in a position to be taken by the sharks.

I personally will be shorting the hell out of it. That company as well as other PEs will be tied to the rising rates and be priced out of a lot of deals soon. On top of that if the tax rates increase on them by the hands of Congress then their bottom line moves even closer to 0.

cheers,

chris

[capeman]

Most of the increase will be priced in. You can trade calls to play spreads on expected increases. Since you seem new to it you should keep it small and only play with the lunch money to get an idea of the game. It is something that takes a while to get used to and just learning the subtleties could put you in a position to be taken by the sharks.

I personally will be shorting the hell out of it. That company as well as other PEs will be tied to the rising rates and be priced out of a lot of deals soon. On top of that if the tax rates increase on them by the hands of Congress then their bottom line moves even closer to 0.

cheers,

chris

[Carlmichael]

I just bought in at 37 and I placed a short sell order on 200 shares of SIX after the report of a teenagers legs being severed on a Six Flags theme park.

[Carlmichael]

I just bought in at 37 and I placed a short sell order on 200 shares of SIX after the report of a teenagers legs being severed on a Six Flags theme park.

[Chris Scoreboard Johnston]

FWIW – the stats on buying IPO’s on the open the first day of trading on the stuidies I have done, are about 50/50 that the price will be higher one year later. As a result, there is no reason to chase them, they are no better than a flip of the coin. Some obviously like GOOG are home runs, but there are just as many flops.

[Chris Scoreboard Johnston]

FWIW – the stats on buying IPO’s on the open the first day of trading on the stuidies I have done, are about 50/50 that the price will be higher one year later. As a result, there is no reason to chase them, they are no better than a flip of the coin. Some obviously like GOOG are home runs, but there are just as many flops.

[Anonymous]

I had assumed that the Blackstone IPO was just a group of greedy, Johnny-come-latelys taking advantage of the outrageously loose money environment today.

I read in the Union-Buffoon this morning that the firm was founded in 1985 with $400K out of the founders’ pockets.

That’s actually a heart-warming story, to me.

[Anonymous]

I had assumed that the Blackstone IPO was just a group of greedy, Johnny-come-latelys taking advantage of the outrageously loose money environment today.

I read in the Union-Buffoon this morning that the firm was founded in 1985 with $400K out of the founders’ pockets.

That’s actually a heart-warming story, to me.

[davelj]

No, instead they’re a group of greedy, Johnny-came-earlies taking advantage of the outrageously loose money environment today. I don’t use the term “greedy” in a negative sense, however, despite the humorous, less-than-favorable profile of Schwartzman that was in the WSJ several days ago. Clearly these guys were innovators and have done well – I don’t begrudge them their billions. But I think the days of outsized returns by the large PE groups like Blackstone (and KKR, TPG, etc.) have passed. They’ve got the same problem as Warren Buffett: way too much capital chasing too few decent deals. At some point, the law of large numbers cripples even the financial geniuses. I think the music’s stopped for the big PE players but they’re all still dancing. But, hey, if they can monetize a part of their equity on the backs of dreamers (the IPO participants), why not?

[davelj]

No, instead they’re a group of greedy, Johnny-came-earlies taking advantage of the outrageously loose money environment today. I don’t use the term “greedy” in a negative sense, however, despite the humorous, less-than-favorable profile of Schwartzman that was in the WSJ several days ago. Clearly these guys were innovators and have done well – I don’t begrudge them their billions. But I think the days of outsized returns by the large PE groups like Blackstone (and KKR, TPG, etc.) have passed. They’ve got the same problem as Warren Buffett: way too much capital chasing too few decent deals. At some point, the law of large numbers cripples even the financial geniuses. I think the music’s stopped for the big PE players but they’re all still dancing. But, hey, if they can monetize a part of their equity on the backs of dreamers (the IPO participants), why not?

[HereWeGo]

1) Don’t be greedy
2) Pare your losses

My weekend assignment, to write 1 bazillion times.

[Author]

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