Thursday, April 22, 2010

Blackstone -- Just Go Private

Blackstone (BX) released results, declared the world is getting better and watched investors drop kick their stock price. What’s it going to take? The whole dividend thing is very controversial. The yield is stratospheric. Anything over 5% is suspect. The market for some reason does not scrutinize bonuses at Blackstone to the same degree that Goldman Sachs (GS) gets. But this financial engineering firm exists to create wealth for itself first and then its shareholders.

The market cap is some $4.7. Why not take it private and stop this silly public company stuff. Wheeler dealers do best in closed door meetings. The Blackstone model does not play well in transparent glass wall markets.

Disclosure: No position in this stock