Billionaire Li Ka-Shing offered C$12.4 billion for Canada's Inter Pipeline

Billionaire Li Ka-Shing offered C$12.4 billion for Canada's Inter Pipeline. Offer would be worth $30 per share when IPL.TO was trading at $23. Buyout by foreign owner would be reviewed by Govt and a sale to North American buyer would be easier to pass regulatory muster.

WeWork Might Cut Valuation to $20B as IPO Pressure Mounts

Last Private Capital Raise valuation was $47B. SoftBank cost basis is $35B valuation. In IPO to public markets institutional investors are only willing to pay $20B valuation. We Company has $4B bond sale for raising debt but it is contingent on IPO being done. So they are in a position now where they are running losses of $1B+ a year and more growth means more losses.

I saw a one hour interview with Newman the CEO and Founder of We Work and was interesting. They are trying to optimize use of office space with use of technology. But overall business model is risky with company signing long term leases and the. Renting space to clients at monthly lease. Going forward they are shifting to place management business model where by somebody else owns the buildings and long term leases and they only manage them. I am unconvinced the business model is robust and built to survive a recession and major commercial real estate downturn.

BPY by WeWork - A Comparison

We Work which has revenue of $2B and losses on that and a suspect business model is looking for a valuation of $20B (much lower than originally touted $47B).

On the other hand BPY which owns 98M SFT of Premium Office space 92% leased with 9 year expiry (NYC, London, Boston, Washington DC, Houston, LA, Toronto, Calgary, Ottawa, Sydney, Melbourne, Perth, Adelaide) and 125 Premium Class A malls 96% leased with 10 year expiry (All Major US cities including the valuable mall parking lots in downtown cores) and also has $6B worth of multi family, student, self storage and other opportunistic assets. BPY also has many development projects coming online in next 2-5 years which will add to cash flow.

BPY worth $20B today generates $1.5B+ in FFO (could be $2B in FFO including gains from opportunistic investments over near term) in one side and the We Company with a smooth talking and charming CEO on the other side. Which do you think has real value and which is likely a Ponzi Scheme. Let us see how things evolve over next 5 years but my bet is squarely on BPY and real assets and against the We Company.

Uber and Lyft close at record lows as investor skepticism grows

Key question for investors on UBER and LYFT

1) Do they have competitive advantages?

2) Can they be profitable?

3) Can they diversify their earnings into new areas like UBER eats and Logistics Package Delivery etc.

4) Will drivers keep working as contractors and depreciating their cars? Most Uber drivers don’t make money once car depreciation is considered according to some analysts.

I remain skeptical of UBER and LYFT even at today’s new lows at their $55B and $14B valuations.

CNBC: Uber and Lyft close at record lows as investor skepticism grows

POT Stock Bubble has Burst

POT Stock Bubble has Burst. TLRY which ipoed amd trades at $300 which was $30B valuation in Sep 2018 is not valued at $2.5B.

I wonder if any of these POT companies will turn a profit ever. I suspect one or two winners will emerge and survive but all the people chasing the easy money in this bubble have been burnt!

US 30 Year Yields below 3M at 1.95% and 10 Year Bond Yields below 2 Year at 1.45%

US 30 Year Yields below 3M at 1.95% and 10 Year Bond Yields below 2 Year at 1.45%.
Madness or Apocalypse Now!!!

AMZN evolving Threat to FRX and UPS in US Logistics

AMZN evolving Threat to FRX and UPS in US Logistics. Pictures paint a thousand words. Looking forward another 5 years and 10 years AMZN can become a formidable threat especially if with innovation they can do things cheaper than FDX and UPS

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