Tom and AW, Time to buy the real P.I.G....CKFR.
Regards,
Rob
Rob, no offense, in the middle of a recession, and you and AW and I are friends. If we were going to buy a business tomorrow together, we'd vote to buy one that is already making money so it would generate cash to make the payment for buying it from it's current owners business?
NO?
Or would you want to cough it up every week out of your own check or draw to buy it, ie...lbo is the way to go. I'm telling ya.
IT'S OPM MAN, it works in stocks.
ie...if the target business has enough free cash flow to make the payment the business ends up being yours for free. But it has to have free cash flow.
So one like this, at their price, currently, you could buy the whole company for $3.50 and pay them back their own money being generated over a 10 year period and not dip once in your pocket for a payment...you'd get the whole thing for nothing and steal their future revenue and cash flow. Then turn around and sell it for $50 a share, and probably put $15 a share in your pocket prior to that. |
