BX - The Blackstone Group L.P.

[BadThad]

Noticed there was no BX thread in the new forum, gotta have it:

BX on Google Finance (http://finance.google.com/finance?q=BX)

Chart (http://stockcharts.com/h-sc/ui?s=BX&p=D&b=5&g=0&id=p92144813484)

IPO end of June 2007. Price went pretty much straight down but this is a damn good company. It will be back and any savy investor should be watching for the bottom. ;)

The Blackstone Group L.P. is a global alternative asset manager and provider of financial advisory services. The Company is an independent alternative asset manager with approximately $78.7 billion worth of assets under management as of March 1, 2007. Its alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt vehicles, proprietary hedge funds and closed-end mutual funds. It also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement services. The Company's business is organized into four business segments: Corporate Private Equity, Real Estate, Marketable Alternative Asset Management and Financial Advisory.

Today's Price: $29.50

[BadThad]

News out today:

Blackstone does matchmaking in Barclays-China deal
1:07p ET July 23, 2007 (MarketWatch)
NEW YORK (MarketWatch) -- Blackstone Group finds itself at the center of another blockbuster deal, but in this case it's neither buying nor selling.

The newly public private-equity firm is advising China Development Bank in its deal to buy an up to 19% stake in Barclays PLC . The deal is likely to raise eyebrows on Wall Street, given the Chinese government's $3 billion investment in Blackstone earlier this year.

China Development Bank will invest 2.2 billion euros -- equivalent to around 3.1% of Barclays -- in new Barclays shares at 720 pence each. If Barclays' bid for ABN Amro bid succeeds, it will invest up to another 7.6 billion euros at 740 pence a share. See related story.

Blackstone provided a fairness opinion along with standard-advisory services to the CDB at the recommendation of Barclays. Barclays and CDB have a long-standing relationship, including a joint venture in Africa.

CDB bankers, at first, flinched at the idea of Blackstone's involvement since they thought the company was purely a private-equity firm, according to a person familiar with the talks. When informed that Blackstone also offered advisory services, CDB officials were introduced to John Studzinski, head of the advisory arm at Blackstone, the person said.

Studzinski is the former co-head of investment banking at HSBC Holding and a former head of European investment banking for Morgan Stanley.

Many advisers have signed on with partners in the battle for ABN Amro. Barclays is being advised by its capital-markets unit as well as by Citigroup Inc. , Credit Suisse , Deutsche Bank , JPMorgan Cazenove and Lazard Ltd.

Growing Chinese presence

Blackstone's ambitions in China took a big leap forward in January when the firm opened a private-equity office in Hong Kong. At about the same time, Blackstone hired former Hong Kong's former financial secretary, Antony Leung, as a senior managing director.

The role in the Barclays deal highlights what is an often-overlooked part of Blackstone's business: financial-advisory services. The unit as of May 1 had 167 employees and offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, New York and San Francisco, as well as London.

Financial-advisory services have been part of the business offerings of Blackstone since its founding in 1985. The unit had advised on $275 billion in deals in the two decades since. Clients have included Albertsons, Comcast Corp. , Fox Entertainment Group, Kinder Morgan , Microsoft Corp. , Procter & Gamble Co. , Reuters and Sony Corp.

[BadThad]

News today:

Blackstone said to flip EOP properties
The private equity firm has earned back more than 70% of what it paid for the real estate empire, Wall Street Journal says.
July 26 2007: 4:25 AM EDT


LONDON (CNNMoney.com) -- Blackstone Group has sold off many of the buildings owned by Equity Office Properties Trust and earned back more than 70 percent of the $39 billion it paid for the real estate empire, according to a report published Thursday.

The Wall Street Journal said Blackstone has sold several of the properties since it bought EOP five months ago, and many of those buildings have sold at record prices amid a boom in the commercial real estate market.

The impact of the high-price sales, which occurred at a rapid price, is still coursing through the real estate market, the newspaper said.

Blackstone (Charts) bought real estate tycoon Sam Zell's EOP in February after winning a fierce bidding war with Vornado Realty Trust (Charts).



BX still down more today: $23.75

[BadThad]

Billed today in a news article as the WORST IPO of the year, falling into nothingville since it's intro. I'm wondering if they will be able to recover ever?

[BadThad]

Still on the down trend today...watching close!

[BadThad]

OK, this is insane.....

Anyone want to guess where the low for BX is going to be. All it's done is go down, down and then down some more. Come on, this is a company with over a billion $ in sales quarterly. The P/E is completely WHACK: 1.48

Somebody please chime in on this! I just don't get it at this point. :confused:

[C-Money]

OK, this is insane.....

Anyone want to guess where the low for BX is going to be. All it's done is go down, down and then down some more. Come on, this is a company with over a billion $ in sales quarterly. The P/E is completely WHACK: 1.48

Somebody please chime in on this! I just don't get it at this point. :confused:

Im right there with ya, Thad. Ive been watching this awhile, and I've been DUMBFOUNDED at how LOW this thing is going! One thing is for sure, I will be buying in once it finally hits rock bottom..

By the way, I appreciate the information that you have given on this..

[BadThad]

Im right there with ya, Thad. Ive been watching this awhile, and I've been DUMBFOUNDED at how LOW this thing is going! One thing is for sure, I will be buying in once it finally hits rock bottom..

By the way, I appreciate the information that you have given on this..

Finally....another BX watcher! :D Welcome to me talking to myself for weeks! LOL I'm going to buy this stock, just watching and watching because over the next 10 years BX is going to go up, up, up IMO. :)

[BadThad]

Just did a little DD on BX, the actual PE is 1.69! This stock is soooooo undervalued it's not funny. The biggest issue we're facing with the stock now is their subprime exposure. I'm not sure how bad it is for them, but I fear we won't see the rocketing PPS until the subprime worries disappear. Nonetheless, I'm very, very bullish on BX. I think now is a great time to buy, it's just going to take a couple of years before it's a valuable investment.

[BadThad]

Did some more DD digging....I'm buying BX, the consensus is BX is a fantastic company and the stock price is a super, super bargin. Here's an example of stuff I was finding:

Blackstone among world's best companies (http://www.bloggingstocks.com/2007/09/25/blackstone-bx-and-citigroup-c-among-the-worlds-best-compa/)

[BadThad]

OK, I'm in for 100 shares @24.91 and I feel really good about this stock and company. :D

[BadThad]

Great article on BX:

Why Blackstone is a buy. (http://money.cnn.com/magazines/fortune/fortune_archive/2007/10/15/100539067/?postversion=2007100209)

[BadThad]

Up every day this week! Great buy!

[BadThad]

OK, I'm in for 100 shares @24.91 and I feel really good about this stock and company. :D

If you would have followed me on this one, you'd be up $364 too! :p Far from too late IMO, BX is going to be a winner!

[BadThad]

Way, way oversold, 10-day RSI below 30, the 3-month below 50. Good time to pickup some bargin shares IMO.

[Grizzums]

Way, way oversold, 10-day RSI below 30, the 3-month below 50. Good time to pickup some bargin shares IMO.

Could be about at an interesting area to perhaps look at a starter....but I have a feeling its going to drop below that 25-6 support area.....call it a gut feeling as I have done little research to back that assumption up...

Good Luck.

[BadThad]

Man, you're good! I sold my position a few minutes ago.....I'm watching for a re-entry point.

[BadThad]

News out today. I'm back in this stock, lured by some fundamental analysis, especially the unreal low P/E:

Blackstone completes $20.1B Hilton buy
October 24, 2007: 01:10 PM EST


Oct. 24, 2007 (Thomson Financial delivered by Newstex) --

NEW YORK (AP) - Private-equity company Blackstone Group said Wednesday its $20.1 billion takeover of hotel operator Hilton Hotels Corp. (NYSE:HLT) (NYSE:HLN) has completed.

Hilton's shareholders will receive $47.50 in cash for each share they held when the deal closed, Blackstone said.

As a result of the takeover, Hilton's stock will stop trading on the New York Stock Exchange and be delisted at the close of market on Wednesday.

Hilton shares rose 8 cents to $47.48 in afternoon trading. Blackstone shares fell 36 cents to $26.

[BadThad]

BX reports loss:

NEW YORK - Blackstone Group LP, one of the world's largest private-equity firms, on Monday reported a third-quarter loss on charges related to its initial public offering this year.

Blackstone reported a loss of $113.2 million, or 44 cents per share. The loss included the impact of $802.6 million of non-cash charges for compensation and other items linked to its IPO.

Last year, the company reported a profit of $372.5 million when it was a private concern. Revenue rose to $526.7 million from $461.5 million a year earlier.

The results reflect Blackstone's first full quarter operating as a public company after its debut on the New York Stock Exchange in June. Analysts expected a profit of 30 cents per share on revenue of $765 million. Analyst earnings predictions typically exclude one-time charges.

Blackstone said a global credit crisis has made it more difficult to finance deals, especially given a backlog of leveraged loans that banks have yet to process. That has created a "dampening effect" for new corporate, private equity buyouts.

"While it will be difficult to structure very large leveraged transactions in corporate private equity and real estate until the credit markets improve, pricing of assets is more favorable," said Chairman and Chief Executive Stephen Schwarzman in a statement. "Additionally, Blackstone's marketable alternatives and advisory businesses continue to grow and are not dependent on access to the lending markets."

During the third quarter, Blackstone said its corporate private equity rose 42 percent. The business, which buys companies and then takes them private, also posted transaction fees of $11.9 million.

The real estate business posted a 44 percent decline in revenue to $109.1 million. Blackstone said the decline was because "weakness in subprime residential lending area spread to general commercial real estate."

Blackstone's asset management business reported revenue of $124.9 million, up 88 percent on the year. The firm took advantage of market volatility during the quarter, securing big gains from its hedge and proprietary trading funds.

[BadThad]

I haven't updated this one in a while, PPS taken down with the bear lately, $18.72 currently.

[BadThad]

Some news out today, sent PFGC up over 30% today:

NEW YORK (Dow Jones) - Food distributor Performance Food Group Co said Friday it agreed to be bought by an affiliate of Blackstone Group and Wellspring Capital Management for about $1.3 billion.

Performance Food (PFGC) shareholders will receive $34.50 for each share of company common stock they hold, the Richmond, Va.-based company said. That represented a 43% premium over Performance Food's closing price of $24.19 Thursday, the company said.

The company's shares shot up 35% in pre-market trading.

Performance Food markets and distributes more than 68,000 national and private label food and food-related products to over 41,000 restaurants, hotels cafeterias and hospitals.

After the transaction closes, expected by the end of the second quarter, Performance Food will be combined with Vistar Corp., a foodservice distributor controlled by affiliates of private equity firms Blackstone and Wellspring, the company said.

Blackstone and Wellspring are subject to a $40 million terminate fee if they breach the contract to close the deal. Performance Food also will solicit other bids from third parties during the next 50 days.

[BadThad]

Another stock destroyed, trading at $14 today:

The Blackstone Group reported on Monday a net loss of $170 million for its fourth quarter, a sharp reversal from the same time in 2006 amid expenses tied to the private equity firm's initial public offering and a choppier credit market that has hurt its businesses.

Under an accounting metric that accounts for expenses related to its I.P.O. last year, Blackstone reported a gain of $128 million, which still represented an 86 percent drop from the same time in 2006. That figure comes out to about 8 cents per unit; analysts surveyed by Bloomberg News estimated profit of 20 cents a share.

The strong revenues of the first half of 2007, regarded as the peak of the private equity boom, gave way to a morass of problems stemming from tougher economic coditions. "The operating environment in the second half of the year presented significant challenges," Blackstone's chairman and chief executive, Stephen A. Schwarzman, said in a statement.

He also warned that the firm will likely experience a rough 2008 as well: "Difficult market conditions in the U.S. and Europe continue in 2008 and there is little visibility on when these conditions might improve."

The toll taken by the credit markets manifested in nearly all aspects of Blackstone's businesses. Its core private equity unit reported a loss of $15.4 million for the quarter, compared to revenues of $533.8 million for the same time in 2006, on the basis of lower management fees.

The business also reported a sharp drop in performance fees, stemming in large part from a write-down related to the Finacial Guaranty Investment Corporation, the bond insurer in which Blackstone holds a stake.

[greencat]

BX looks like its ready to complete the cup pattern at $15.00-15.50 and possiblr higher. BX has a real nice setup for a breakout.

BX Chart
http://www.profitspi.com/stock-chart-str.aspx?id=BX&ca=671415331