Comments on: Sob story of the day, vulture-fund edition http://blogs.reuters.com/felix-salmon/2011/04/11/sob-story-of-the-day-vulture-fund-edition/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: DrFuManchu http://blogs.reuters.com/felix-salmon/2011/04/11/sob-story-of-the-day-vulture-fund-edition/comment-page-1/#comment-25738 Wed, 13 Apr 2011 02:23:01 +0000 http://blogs.reuters.com/felix-salmon/?p=7897#comment-25738 Well, if the stock is overvalued, then this sort of strategy ought to bring the price down. More fundamentally, this sort of opportunity may indicate a company that is not being run optimally.

If in any case no value is being added, this is simply the price of a stable legal system.

]]>
By: Christofurio http://blogs.reuters.com/felix-salmon/2011/04/11/sob-story-of-the-day-vulture-fund-edition/comment-page-1/#comment-25730 Tue, 12 Apr 2011 15:45:38 +0000 http://blogs.reuters.com/felix-salmon/?p=7897#comment-25730 In this context, shouldn’t the term “buzzwords” be subject to euphonious variation?

I’m thinking “buzz(ard)words”

]]>
By: KenG_CA http://blogs.reuters.com/felix-salmon/2011/04/11/sob-story-of-the-day-vulture-fund-edition/comment-page-1/#comment-25721 Tue, 12 Apr 2011 01:40:09 +0000 http://blogs.reuters.com/felix-salmon/?p=7897#comment-25721 y2k, I didn’t want to insult the other parasites of the world. But thanks for mentioning it.

]]>
By: y2kurtus http://blogs.reuters.com/felix-salmon/2011/04/11/sob-story-of-the-day-vulture-fund-edition/comment-page-1/#comment-25719 Mon, 11 Apr 2011 23:56:27 +0000 http://blogs.reuters.com/felix-salmon/?p=7897#comment-25719 ” parasites on the other hand, would find a live company, take control, and then suck the life out of it by loading it up with debt…”

KennyG they call that private equity… and you forgot the step of canning half the workforce, suspending the 401k match, and passing on healthcare costs to workers and goverments.

]]>
By: KenG_CA http://blogs.reuters.com/felix-salmon/2011/04/11/sob-story-of-the-day-vulture-fund-edition/comment-page-1/#comment-25717 Mon, 11 Apr 2011 21:37:49 +0000 http://blogs.reuters.com/felix-salmon/?p=7897#comment-25717 Vultures would wait until a company is dead, and then acquire the assets and sell them for more than they paid. They would perform some value for society, by recycling the assets of a business that is not viable.

A parasite, on the other hand, would find a live company, take control, and then suck the life out of it by loading it up with debt to cover their acquisition, and then paying themselves a big dividend, and leaving the debt-laden carcass to fend for itself, blaming the ultimate demise of the company on the economy, the crisis, or whatever the excuse of the year is. The parasites do not add any value to the companies they acquire or to society, but rather, they extract value.

Come on Felix, get your buzzwords right.

]]>