Not exact matches
The dilemma for Fidelity and Hartford, says Drew Nordlicht, partner and managing director of Hightower Advisors in San Diego, is whether to make subsequent
investments at their own price threshold, or to use Blackrock's 20 percent
higher valuation, which means a dilution of their own shares.
A number of those
investments have gone on to raise capital
at higher valuations, according to Forbes.
If the new
investments come through, they'll keep the servers on, and would almost certainly come
at a huge discount from
valuations that had reached as
high as $ 700 million.
Using private market
valuations that were available
at the time for Gannett's
high quality TV stations and marking to market the company's
investments in CareerBuilder and other internet companies, an investor could have concluded that those assets alone where worth north of $ 11 a share
at the time.
An
investment in OHI
at its current
valuation should reward investors very well in future years with the demographic tail wind pushing profits
higher.
More importantly, the growth in CYS
Investments» book value is likely to raise expectations with respect to the development of book values and
higher potential
valuations at larger sector rivals Annaly Capital Management (NYSE: NLY) and American Capital Agency Corporation (NASDAQ: AGNC).
In a whipsaw period like that which we have had from 1998 to the present, it makes a lot of difference, because many
investments during the bubble era put fresh capital into the market
at a time of
high valuations, with buybacks predominating as
valuations troughed.
If you sell your
investments, the amount per year could be even
higher, but that depends on the
valuation of the stock market
at the time of being 80 years old.
In the process of scanning the
investment landscape to find value amidst the all time
highs for the indices, I've noticed that a number of big cap tech stocks are priced
at low
valuations relative to their earnings and free cash flow, measured on an absolute basis and relative to their own historical
valuations.
It seems to me hard to believe strongly in both ideas
at the same time (
high valuation, leveraged equity
investments).
The aim of the
investment management / research team is to invest in companies which on average have
high return on capital invested, are not excessively leveraged, are run by competent and minority shareholder friendly managers and are available
at reasonably attractive
valuations.
At what point does excessive
valuation turn quality into
high risk
investments?
Shares of Hershey, despite even
higher valuation compared to Colgate, would have compounded
at 11.50 % annually over that time frame, turning a $ 10,000
investment into $ 46,500.
His return on
investment on those dollars is much, much
higher than say someone who invested in Twitter
at, say, a $ 3.7 billion
valuation.