9-202-024 REV: APRIL 8, 2002 MARK MITCHELL TODD PULVINO ERIK STAFFORD Strategic Capital Management, LLC (A) On December 9, 1998, Elena King contemplated her first investment as a hedge fund manager. In only a few months, Elena had raised $20 million for her new fund, Strategic Capital Management, and was looking forward to putting the money to work. Based on recent comments by high-profile analysts such as Henry Blodgett of Merrill Lynch and Mary Meeker of Morgan Stanley, Elena thought that the Internet sector provided excellent prospects for lucrative investments. She was specifically interested in a recent initial public offering (IPO) by Ubid, an Internet auction firm. Strategic Capital Management, LLC Elena became …show more content…
202-024 Strategic Capital Management, LLC (A) the world could view and bid on computers, peripheral equipment, and other consumer electronics. The Ubid subsidiary proved to be very successful, generating $2.1 million in sales in its first quarter of operation. Management projected that sales in the Internet auction subsidiary would continue to grow at a rapid rate. Based on the high market prices of other Internet retailers, Creative Computers’ managers did not believe that its stock price accurately reflected the potential of its Internet business. To raise the market’s awareness of the Internet portion of their business, Creative Computers decided to carve-out the Internet subsidiary. On July 6, 1998, they announced their plans to sell approximately 20% of Ubid's equity in an initial public offering. Subject to a favorable tax ruling by the Internal Revenue Service, they planned to distribute the remaining 80% of Ubid to the shareholders of Creative Computers in a tax-free spin-off six months after the Ubid IPO. The Ubid IPO took place after the close of trading on December 3, 1998. Ubid sold 1.817 million shares for $15 per share. This was the top of the expected range of $14 to $15 set by Merrill Lynch & Co., the lead underwriter of the equity carve-out. Ubid received proceeds of $25.4 million, after subtracting $1.9 million in underwriting fees. On the first day (December 4, 1998) that Ubid was publicly traded, its shares opened at
The proposed LBO deal of Comark Building Systems is an attractive investment for Brazos because it fits into Brazos’ “sweet spot”- a reasonable priced company with solid cash flow and good management. We can project cash flow at $6.8 million in 2002 and $12.3 million in 2006. In terms of the purchase price at $40 million, it is very attractive because we can get very good Total Post Money Valuation at $194 million. We can also confirm that the Market Value/EBITDA (1.38) of CoMark is lower than its competitor’s (3.42) when we compare multiple ratios, which means CoMark is undervalued. However, there are two major concerns; gaining competitive advantage and determining comparable valuations.
As the manager of Morningstar Incorporated, I would advise against dropping stocks and bonds from the business. Owning stock is buying into what the company has. That covers everything within the store. An example would be holding stock in Wal-Mart and reaping the benefits of everything they sell. Stock owners own a portion of the company’s assets and its profits. An investors goal is to make money, and people invest in businesses that they believe will do that (Capital One, 2017).
Covenant Capital Management was founded in 1999, and since then, it increasingly grew its AUM to approximately $300 million for its clients around the world. The firm’s headquarters are located in Nashville; in addition, they have a fully-redundant branch office in Chicago. The founders, Brince Wilford and Scot Billington, focus their efforts on the refinement of their core strategy which has not changed since the inception of the firm. CCM partners with select institutional clients in the development of customized trading models that achieve specific risk and return stream objectives.
Before CC distributed 7.32 million UBID shares to its shareholder, the arbitrage opportunity exists. The rate of return is 11.42% which is discussed before.
This document does not constitute buying advice or offer and should not be relied upon in connection with any contract, purchasing, or investment decision. The information contained in this document is privileged and confidential, intended for use during personal pre-ICO stage, for the eyes of friendly investors
1. Adams espouses a “market first” analysis of opportunity by looking for discontinuities. Is this substantive or window-dressing? Do the four types of discontinuities represent applicable guidelines? Are they comprehensive, or are there other discontinuity templates that a venture investor would find useful?
Schwartz and Sons LLC is a painting company that is located in Ham Lake, Minnesota. Their services include fire, water, and storm restoration, drywall repair, drywall installation, drywall taping, drywall texturing, green / low VOC coatings, and more. Schwartz and Sons continues to meet the demands of all budget-conscious homeowners who are looking to improve their homes at a price they can afford.
StraussGroup, Inc. is an employment agency that is located in Buffalo, New York. StraussGroup, Inc. was founded in 2001. Their search options include retained search, dedicated search, contingency search, and contract staffing. Their practices include financial services, information technology, healthcare/life sciences, safety/manufacturing, contract staffing, and RPO. StraussGroup, Inc. is the winner of the 2016 Buffalo Business First’s Best Places to Work- Micro Category award.
This report demonstrates the evaluation of current performance of JD Sports Company. Method of Analysis includes Ansoff’s matrix and Porter’s generic growth strategies to discuss the nature of the market which JD Sports invest in. The financial methods are including the flexibility and stability of JD sports which judged by the liquidity, current ratio, operation capital, gearing and profit margin of this company. These figures could be collected from the annual report or balance sheet. This report analyzed the JD sport’s position in the market, and used generic and external growth method to expand market size. Such as acquired a lot stores to improve business profitability. Obviously, JD has expanded to the European
Highland Capital Management co-founder James Dondero continues to expand his philanthropic pursuits by teaming up with Linda Owens, the president of the Woodall Rodgers Park Foundation. Dondero wants to expand the base of his charitable giving program. The Dallas Foundation administers Highland’s charitable fund and Owen will serve as the manager.
Boss Capital entered the prevalent binary options trading market in 2014 coming in with full force and making a name for itself quickly. Its prestige platform sets it apart from other trading websites. With an 85% payout, bonuses of up to 100%, and no hidden fees or extra charges, it makes it easy to choose this reliable platform when trading. Traders always feel safe when making decisions and managing their money on Boss Capitals platform. Boss Capital also offers a wide variety of assets including currencies, commodities, and over 200 indices.
The private equity firm bought a majority stake in First Eagle Investment Management with the global investment firm. The deal saw the money management company valued at nearly $4 billion, including debt.
In front of Dan Chores is the issue of recommending three hurdle rates for each of Marriott Corporation's three divisions, which have significant effect on the firm's financial and operating strategies as well as its incentive compensation. Marriott Corporation had three major lines of business: lodging, contract services and restaurants. Also Marriott had its growth objective, to remain a premier growth company.
Globalization changes have impacted Burger King in the following ways; since the company began in 1953 with its first restaurant in Jacksonville, Florida and opened several locations across the United States, the company began its international expansion in 1969 with its first international franchise location in Canada, followed by Australia in 1971, and Europe in 1975. The setting up of franchises outside the United States was as a result of fast food opportunities arising outside the United States. So as to fully integrate in the international market, Burger King had to adopt and embrace
Future- oriented: Strategic management encompasses forecasts, what is anticipated by the managers. In such decisions, emphasis is placed on the development of projections that will enable the firm to select the most promising strategic options. In the turbulent environment, a firm will succeed only if it takes a proactive stance towards change.