IM conversations at leading funds:
Analyst: I think that this maker of ball bearings is quite attractive because of its strong operating momentum, $500mm net cash position, and dirt cheap valuation of 6x fully-loaded FCF.
PM: WHAT IS THEIR SUBPRIME EXPOSURE?!?
Analyst: They don’t own subprime. Or sell houses. Or sell into housing-related markets. Or have variable rate debt.
PM: OK BUT ARE THEY EXPOSUDED TO THE SUBPRIME PRESSURE ON YIELDS?
Analyst: No
PM: I LIKE THE NAME BUT WANT TO OWN IT 10% CHEAPER
Analyst: They’re buying back 10% of shares outstanding this year.
PM: WHAT ABOUT SUBPRIME? ANY EXPOSURE THERE?
Analyst is now offline.
(Am I the only one that don’t think subprime is that bad? Look at how much GS made by shorting subprime for their proprietary trading)
Tags: conversation, jokes, portfolio management, subprime, trading
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August 26, 2008 at 7:30 am
Nick
Rui, man, the only reason I am laughing here is because I have NO idea what the hell ANY of that meant! Ha ha ha!
Now tell me a joke about Arabic Cultural Studies, AH64-D Longbows, or Nursing, (my 3 job changes so far) and I’ll get it… perhaps! Anyway!