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Non-Tech : Bill Wexler's Trading Cabana -- Ignore unavailable to you. Want to Upgrade?

To: Doc Bones who wrote (2149)	6/12/2007 4:29:51 PM
From: Bill Wexler	Read Replies (2) \| Respond to of 6370

I'd be willing to lend them $20. At 10% interest.

To: Doc Bones who wrote (2149)	6/17/2007 9:55:20 AM
From: RockyBalboa	Respond to of 6370

"Easy money might be greasing the way, but are smart deals getting done? The unnamed private equity executive thinks buyout firms are asking for trouble by overpaying. At the very least, firms like KKR and Blackstone will find it hard to continue making 20-per-cent annual profits or better on their acquisitions. “I don't know how it can do anything but drive returns down,” he says. There are a lot of different views on what will bring this private equity cycle to an end. It could be a recession, or a serious move in junk bond yields, which haven't budged very far from their lows, despite higher interest rates in the U.S. and Canada. But most people agree a couple of high-profile disasters would sober up investors quickly, forcing them to demand sweeter terms for giving their money to the private equity firms. One candidate for difficulty might be Freescale, taken out by Blackstone Group last year for $17-billion (U.S.). It's in a low-margin business, heavily reliant on one customer (Motorola) that is losing market share in wireless handsets. Moody's Investors Service just slapped a negative watch on the company because of a poor first quarter – its first as a private company. In Canada, investors squawked when KKR took over Masonite International, a door manufacturer, at what was perceived as a low price. But the public shareholders may have had the last laugh. Masonite's sales are falling and it recently lost a key contract with Home Depot. " Also see: reportonbusiness.com