-
|
|
|
|
-
|
-
|
|
Alerts
May 2013 Newsletter Release Schedule
Securities Update & Analysis for Intelligent Investor on Video
Stock Market, Commodities, Currencies & Precious Metals Forecasts
Mike Stathis' Track Record on the Economic Collapse
Extension of the $100,000 Challenge
Predictions & Insights from America's Financial Apocalypse
Intelligent Investor Special Promotion - EXTENDED
Special Dividend Gems Promotion
ARE YOU SICK OF HEARING LIARS AND IDIOTS?
Another Stock Collapses as We Predicted
May 2013 Commodities, Currencies & Precious Metals
May 2013 Emerging Markets Forecast
May 2013 Dow Jones & Nasdaq Forecast
April 2013 Dow Jones & Nasdaq Forecast
April 2013 Emerging Markets Forecast
April 2013 Commodities, Currencies & Precious Metals
Gold Analysis & Forecast. March 25, 2013
March 2013 Dow Jones & Nasdaq Forecast
March 2013 Emerging Markets Forecast
March 2013 Commodities, Currencies & Precious Metals Forecast |
| KKR Finds A Sheep Warehouse To Dump Its Trash |
|
|
|
I ran across an interesting announcement that bodes well for Fidelity and KKR. But I’m willing to bet it will be a bad deal for unsuspecting Fidelity investors.
Kolberg Kravis Roberts & Co. (KKR), a large well-known leveraged-buyout firm (which I consider a corporate raider) has announced that it plans to give Fidelity access to IPOs from its portfolio companies. In turn, Fidelity plans to provide IPO shares to its customers.
Discount brokers don't normally get IPOs because they aren't involved in the underwriting process (since they don't have investment banking departments).
In addition, they really don't have the kinds of relationships with huge pension funds and other financial institutions to ensure robust demand for IPOs.
But that isn't stopping KKR. In my opinion, the firm plans to offer IPOs to Fidelity because they know the sheep (Fidelity customers) will snatch them up without doing proper due diligence. In fact, it’s virtually impossible for outsiders to do proper due diligence on IPOs. This is especially true for companies taken public by buyout firms.
Ask yourself why KKR might offer IPO shares to a discount broker when they aren't providing REAL institutional clients, credit lines and other services. Sure, Fidelity claims to have an institutional division, but it’s not a real institutional division by Wall Street standards.
It just doesn't make sense to give away IPO shares to a discount brokerage unless you consider the sheep effect. And if you know anything about these LBO firms, you know they have a habit of taking public companies private, window dressing them (often by screwing the employees) and collecting huge fees for taking them public again. Apparently, the street has caught on to their game and now they need to target the morons at Fidelity.
Most likely, KKR wants a distribution channel to pump out trash to sheep. And the sheep will snag the shares up, thinking it's a great opportunity since many of their clients have never had access to IPOs. This is just another example of sheepherding at its best. For more examples of sheepherding, tune into CNBC and FBN.
NOTE: I continue to face widespread censorship for the cold hard truth I speak, as I see it. My intention is to wake the people up so they will realize just how useless and deceitful the mainstream media is. I ask that you do your part to help with this mission by emailing my articles to your friends and adding the articles to the various online syndication options provided at the top right-hand side of each article. Together, we can make a difference.
Copyright © 2009. Mike Stathis. All Rights Reserved.
Restrictions Against Reproduction: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the copyright owner and the Publisher. These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.
Requests to the Publisher for permission or further information should be sent to info@apexva.com
|
