Why would Platinum Equity have to take at least a
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Posted On: 03/08/2019 12:28:15 PM
Why would Platinum Equity have to take at least a 25% or $500,000,000 writedown on a 2 billion dollar purchase? Didn't Platinum Equity pay 2.1 billion dollars for the LifeScan business after evaluating the Company? Platinum Equity is a fund that is very adept at business valuations and I don't think they overpaid for the business. If anything they bought it at a discount.
I cannot answer this question completely because it is sooo naive. So I will answer it this way, J&J duped Platinum and sales of all Lifescan technologies in the channel were down 25% year to year (2017-2018), with the OneTouch Ultra channel (their premier product for almost 2 decades) down 33%. Lifescan, for years blew fairy dust on the channel and masked a declining user base with twice a year price increases. The interesting thing is that everyone knew this, I guess except Platinum. Sinocare, a rumored buyout candidate walked away in April 2018. Platinum's new acquisition needs help no matter how much stock traders attribute to Platinum's adeptness.
That would be a huge positive that could add 50x based on the current share price. Is this something you are discussing or is it something you wish for as the best possible outcome. The glass half full mentality is great, but it is hard to imagine any serious financial settlement will occur outside of a complete court victory.
Stick to your day job of trading stocks. That way you can stop trying to be an amateur analyst and continue being a glass 90% empty sort of guy.
I cannot answer this question completely because it is sooo naive. So I will answer it this way, J&J duped Platinum and sales of all Lifescan technologies in the channel were down 25% year to year (2017-2018), with the OneTouch Ultra channel (their premier product for almost 2 decades) down 33%. Lifescan, for years blew fairy dust on the channel and masked a declining user base with twice a year price increases. The interesting thing is that everyone knew this, I guess except Platinum. Sinocare, a rumored buyout candidate walked away in April 2018. Platinum's new acquisition needs help no matter how much stock traders attribute to Platinum's adeptness.
That would be a huge positive that could add 50x based on the current share price. Is this something you are discussing or is it something you wish for as the best possible outcome. The glass half full mentality is great, but it is hard to imagine any serious financial settlement will occur outside of a complete court victory.
Stick to your day job of trading stocks. That way you can stop trying to be an amateur analyst and continue being a glass 90% empty sort of guy.
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