Investing at the Moment

by Mr Juggles

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

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