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Buy Out Firm, Blackstone, seeks 7.75 Billion in Stock Sales

Erik Folgate

Have you heard about the latest IPO craze that everyone is talking about on Wall Street? It’s the Blackstone IPO. I’m not too familiar with Blackstone, but I know they are an equity firm that specializes in buying out corporatoins down on their luck, hedge funds, real estate, and other investments. The latest is that a Chinese investment firm is putting around 3 billion dollars into the IPO, so I imagine this stock is going to quite a bit of activity its first week on the New York Stock Exchange. The question is, should you invest in it?

All I can tell you is that I don’t invest in single stocks, and following IPO’s is pretty risky. You can make some good quick profits off of IPO’s, but you need enough money to play with for it to be worth it. You also need to know when to sell the stock, because it’s easy for these IPO’s to have a huge boom in the beginning and then level out to fair playing field for stock value.

The firm is an interesting one. It’s a limited-partnership, so they get around paying corporate taxes at 35%, and they have done some other creative things to evade taxes and certain regulatory procedures.

Check out this article if you are interested in Blackstone and their upcoming IPO

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college. Another one of Erik's projects is the site, Stuff We Google.

Learn more - including co-founders Andrew Schrage and Gyutae Park.

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  • http://www.forestcotton.blogspot.com/ FINANCIAL DIRECTORY

    Private equity is nothing more than a blood sucking way to drain the life and vitality out of a company in order to make a fast buck. Buy a company using lots of leverage. Along with some dirty little tricks like buying quietly a majority stake in a company behind everyones back without making a tender offer along with and including buying the shares at a big discount to what they are actually worth without declaring your intentions’ to deceive investors. Than declare that your taking the company private and offer as little as possible for the remaining shares which are worth twice as much money as your offering for them and than say your saving the company what a bad bad joke. These private equity firms will do anything to come out ahead on the bottom line. Like sell all the real estate a company owns’ sell or loan out patients and copyrights’ tradmarks’ pit one state against another threatening to move a division of their company to another state if they do not receive a subsidy or some generous tax breaks. Sell off divisions of the company that are undervalued. Fire as many workers as they possibly can’ along with cutting the wages and benifits of the remaining employees to increase the bottom line. Squeeze price concessions from loyal vendors that are heavely dependent on a large part of their sales to your company. Tell your unions its take drastic cuts in wages and benifits or else risk having your plant shut down. And finally when you bring your company public again hire that so ethical investment banking firm goldman sachs to overhype the value of your public offering to increase the amount of money you will receive when the company becomes a public company again and at that point you bail out of the stock leaving a company torn into pieces from what it originally was.

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