I'm an old investor...I've been though a lot; 1980-81 interest rate killer, 1987 market crash, the 2001 tech bubble (Pets.com), and 2008.
During those days, you had companies (flush with cash) that could pick off the best companies that had great concepts (products), but were dying on the vine (lack of cash). Think of a drug company that is in the start of a phase 3 trial, that is running out of money.
It seems that a year or two from now you will have bio tech, robotics, and software companies that could be ripe for the picking. Rate should be up, and these companies can not get their products to market. The bank (or hedge fund) is ready to take them back (if they haven't already). The bank has to unload them (get them off their books).
The question is, who will be the companies that will pick though to find the gems in the rust pile? Will a company like GE, have their own dedicated division, to look for the value that others may disregard?
Please shoot these companies down (if you can); Apple, Pfizer, GE, 3M, McDonald's (robotics), Microsoft.
Can you come up with any other companies that does deep searches for distressed companies?? Thanks...
Ps I'll share a paragraph about 1980-81 interest rate issues.
The Fed funds rate, which is the rate banks charge each other for overnight loans, hit 20 percent in 1980, and 21 percent in June 1981. The cause was an inflationary spiral brought on by rising oil prices, government overspending and rising wages.
During those days, you had companies (flush with cash) that could pick off the best companies that had great concepts (products), but were dying on the vine (lack of cash). Think of a drug company that is in the start of a phase 3 trial, that is running out of money.
It seems that a year or two from now you will have bio tech, robotics, and software companies that could be ripe for the picking. Rate should be up, and these companies can not get their products to market. The bank (or hedge fund) is ready to take them back (if they haven't already). The bank has to unload them (get them off their books).
The question is, who will be the companies that will pick though to find the gems in the rust pile? Will a company like GE, have their own dedicated division, to look for the value that others may disregard?
Please shoot these companies down (if you can); Apple, Pfizer, GE, 3M, McDonald's (robotics), Microsoft.
Can you come up with any other companies that does deep searches for distressed companies?? Thanks...
Ps I'll share a paragraph about 1980-81 interest rate issues.
The Fed funds rate, which is the rate banks charge each other for overnight loans, hit 20 percent in 1980, and 21 percent in June 1981. The cause was an inflationary spiral brought on by rising oil prices, government overspending and rising wages.
