GREY:ALARF - Post by User
Post by
nini222on Mar 08, 2018 7:41pm
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Post# 27687722
What are you actually buying
What are you actually buyingI am not Long or Short AD, but I would not invest it in. Ask yourself what you are actually buying when you invest in AD's equity...you are relying on the management team to manage the capital and you get very little insight into the actual operations or financials of the underlying partners. These types of structures give alot of incentive to these management teams to allocate capital and close deals over being patient and waiting for the right deals. AD's management is in no way at the level of an Onex or Clarivest. I would encourage anyone considering Alaris to check out those 2 stocks that operate real PE platforms, invest their own capital and have very long track records of creating wealth for their shareholders.
On top of this you are paying a premium to book when you pay anything over $16.75 right now....it's not a terrible buy at these levels but just understand there will absolutely be more trouble in their portfolios. Most US BDC's trade at or below NAV.
Good luck to all....owning an operating entity is always better than investing in an entity that is likely being run with the primary objective of paying senior management.