Cashing Out Time (Updated)

  • Facebook & Apple

NYU Prof Damodaran who correctly called for a FB buy at $18 now says says sell at $38. He also said sell AAPL at $700.

“Syncapse, the social media marketing management company that filed for bankruptcy recently, collapsed despite having a roster of blue chip enterprise clients — such as JPMorgan Chase and Coca-Cola — and 100 small and medium sized business clients…”

I love this bit …. “worryingly, every time we’ve seen hard numbers come out of social media marketing companies — even the successful ones — they’ve always been losing money.”

  • Billionaire Li’s Cheung Kong to Sell Mall to Fortune REIT

He cancels annual press conference for the first time in 10 years.

And he decides to reinvest in Europe !

Aug. 2 (Bloomberg) — Li Ka-Shing, Asia’s richest man, said
he will increase his telecommunications market share in Europe
and seek acquisitions as slowing property sales in Hong Kong
depress profits at flagship Cheung Kong Holdings Ltd.

  • Scramble to Exit Housing Market Peaks With “American Homes 4 Rent” IPO Pricing At a 44% Discount

“Two months ago we first observed the scramble by various hedge funds, in this case Blue Mountain, to take advantage of the peak sentiment in housing, and specifically rental housing (which just hit an all time high as reported previously) by rushing to capitalize on recent investments and dump exposure to the witless public.”

  • Thailand’s SEC Relaxes Regulations to Facilitate REITs

Dump it on to the investors.

  • Two major Wall Street firms are in detailed discussions to create and sell the world’s first bond backed by home-rental payments, people familiar with the matter say.

“Blackstone has emerged as the biggest investor in single-family rental homes, spending more than $5.5 billion since the beginning of last year to acquire about 32,000 homes in around a dozen major U.S. markets.”

No wonder we have a housing recovery !!!

And hot off the press….

  • Fortress to Blackstone Say Now Is Time to Sell as Markets Surge

Aug. 2 (Bloomberg) — Private-equity managers from Fortress
Investment Group LLC to Blackstone Group LP, which made billions
by buying low and selling high, say now is the time to exit
investments as stocks rally and interest rates start to rise.

“This is a better time for selling our existing
investments than making new investments,” Briger said on the
call. “There’s been more uncertainty that’s been fed into the
Their comments echoed remarks from Apollo Global Management
LLC Chief Executive Officer Leon Black to Blackstone President
Tony James, who said last month the environment is ripe for selling because credit markets are still hot and equities strong.