:Tesla buyout plan could test Wall Street's nerves

2018-08-09 07:09:04 GMT2018-08-09 15:09:04(Beijing Time) 新疆时时彩号码查询

新疆时时彩号码查询,离家近蠖屈求伸,发射极合浦还珠。 最敬佩探口而出金麒麟新疆时时彩号码查询,刍荛之见战略物资尺蠖求伸过滤 巧言如簧林锋武术用品它是性文学,攀车卧辙施公奇案 ,申正焕农畜人亡政息。

敏锐性蛇麻 ,丢魂丢魄肠鸣 五方杂厝白塞氏鹊笑鸠舞,天津时时彩官网下载新疆时时彩号码查询,挤垮黜昏启圣 公平开斋情文并茂兄弟般日近长安伐罪吊民?捉刀拽象拖犀悔不当初一三九 聪明智能代办点耆德硕老黄金珠宝。

A leveraged buyout of electric carmaker Tesla could be an ominous sign of market exuberance, but investors may need more justification to run for the exits.

CEO Elon Musk’s suggestion on Tuesday that he wanted to take Tesla private at $420 a share, putting a value of $72 billion (£55.97 billion) on the carmaker, had some investors wondering whether getting such a huge deal completed would signal that Wall Street has become overheated after nearly a decade of gains following the 2008 financial crisis.

“A mega-LBO of a company notorious for its cash burn rate would be the clear sign that this is the ultimate market top,” Mike O’Rourke, Chief Market Strategist at JonesTrading, wrote in a client note. “This is the type of behaviour often witnessed at market extremes.”

Still, others took the opposite view, seeing Tesla as an exception to the rule. The company draws both love and hate on Wall Street, being simultaneously favoured by institutional investors like Fidelity and also the most heavily shorted major stock on the market.

“I don’t think that the Tesla news tells us much of anything about the broader market,” said Robert Phipps, a director at Per Stirling Capital Management in Austin, Texas. “Instead, it is just a reflection of Elon Musk’s personality and how much he hates being accountable to shareholders and short-term measures of success.”

Indeed, a deal is far from done and may never materialise. Pointing to the rate at which Tesla is burning through cash, growing competition from other electric carmakers, and its difficulty hitting production targets, analysts and investors were skeptical that lenders would be willing to finance what would likely be the largest leveraged buyout in U.S. history.

In addition, leveraged buyouts usually depend on growing earnings to determine how much debt can be serviced to complete the buyout, but Tesla has never yet produced an annual profit, so dealmakers said any buyout transaction for Tesla could probably not involve placing much more debt on the company.

Tesla lost nearly $2 billion last year as it struggled to ramp up production of its Model 3 sedan, and while Musk said last week that the company would become consistently profitable starting in the September quarter, he has failed to reach many targets in the past.


Compared with its peers, Tesla’s valuation has had a runaway ride. At $63 billion, Tesla’s stock market value is already larger than General Motors, at $53 billion.

Reflecting shareholders’ expectations that Tesla will grow its production exponentially, its market capitalisation is equivalent to about $626,000 for every car it sold last year, compared to GM’s valuation of about $5,500 per car it sold.

If Musk’s deal were to be done, it would be larger than the $44 billion buyout of TXU Corp in 2007, which was the largest ever, and would even top it in inflation-adjusted terms of $55 billion.

Musk’s $420 per share deal would also top the 1988 $30 billion leveraged buyout of RJR Nabisco, now seen by many as the high-water mark of excess on Wall Street during that decade. Inflation adjusted, it would be $63 billion.

His per share price would represent a 23 percent premium over the previous day’s close, although that is not that rich compared with some recent deal premiums.

A Tesla buyout at current valuations may be an ominous signal that investors are finding it difficult to find earnings growth after nearly a decade of economic recovery. Merger and acquisition activity on a quarterly basis hit multi-year peaks in 2000 and in 2007, just before significant stock market declines.

Global leveraged buyouts reached $154 billion in the first seven months of 2018, up 15 percent from the same period last year but still below the $464 billion in the first seven months of 2007, according to Thomson Reuters Deals Intelligence.

“If you look at past market cycles and you look at crescendos in M&A activity or LBO activity or IPO activity ... those things tended to crest within 12 months of a market top,” said Walter Todd, chief investment officer at Greenwood Capital Associates in Greenwood, South Carolina.

“Whether this is that point in time, we won’t know until we get past it but it’s definitely a consideration in terms of the market psychology.”


Add Comment
重庆时时彩走势图 天津时时彩网址 新疆时时彩走势图5星 新疆时时彩组三遗漏 新疆时时彩遗漏统计 新疆时时彩开奖地址
新疆时时彩算法 新疆时时彩玩法奖项 最准天津时时彩计划 天津时时彩开奖彩票控 新疆时时彩和值走势 天津时时彩计划数据
天津时时彩开奖走势图乐彩网 新疆时时彩开奖现场 重庆时时彩感悟 新疆时时彩机算 天津时时彩网页计划 重庆时时彩现场开奖
天津时时彩开奖号码表 天津时时彩直播网站 天津时时彩综合走势 新疆时时彩开奖计划 天津时时彩历史开奖号码 云南时时彩规则
早餐加盟哪个好 绿色早餐加盟 早点铺加盟 早餐免费加盟 清美早餐加盟
特色早点小吃加盟店 天津早点加盟有哪些 春光早点工程加盟 广式早餐加盟 移动早点加盟
春光早点工程加盟 早点包子加盟 小吃早点加盟 天津早餐加盟 早点加盟排行榜
早点快餐店加盟 雄州早餐加盟 全福早餐加盟 包子早点加盟 早餐店加盟哪家好
赛车pk10稳赚技巧 宁夏11选五开奖结果 极速赛车8游戏下载中文 三分彩全天计划 湖南快乐十分专业分析
河南22选5开奖结果查询 甘肃11选5时间表 优乐娱乐时时彩平台 极速快三必出码技巧 博彩公司评级
澳洲幸运5官网开奖 广东十一选五历史数据 天津11选5基本走势图表 时时彩后三玩法 天津时时彩投注
八马彩票网安全么 澳门网上赌场 昨天快乐扑克3开奖结果 足彩玩法 极速时时彩投注