Sentences with phrase «distressed assets play»

I bought it as a cheap distressed assets play, but I suspect my gains actually came from income investors, who are now rushing into the stock.

Not exact matches

The play here is to start buying distressed poor American assets and forming farms, ranches or even islands dedicating to housing them and fattening them on low cost / calorie inputs like McDonald's (NYSE: MCD) dollar menu and corn syrup IVs.

What I can say from a strategic perspective is that 1) I like a purchase of assets at historically low prices, 2) MFC has some expertise in the commodity business so this isn't completely outside their playing field, 3) perhaps, worst case, there could be a strategy to purchase the assets in bulk at a distress sale and then sell them off piecemeal for a profit, and 4) while this may be a role of the dice (who knows where gas prices will be a year from now) MFC is not betting the ranch; the total investment will be about CDN $ 75 million ($ 33 for the outstanding shares, $ 8 million for the warrants, $ 30 million additional investment and I've estimated $ 4 million for transaction costs), or less than 25 % of MFC's current cash hoard.

Typically, Berkshire buys underperforming, distressed assets, but See's was a different play.