Will be see an unwind of the boom in unicorns?
In this week’s video insight Roger takes a closer look at private equity. With interest rates declining over recent years, investors have fled from cash into fast growing start-ups. Although how can the multiples of these companies keep expanding if they are profitless?
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Peter Bryan
:
HAVE A LOOK AT THE VERY SLOW MELTING WAAAX INSTALLATION AT THE NGA, IN CANBERRA!!!
Perhaps it’s a very appropriate installation.
PETERB
Roger Montgomery
:
Funny Peter. Thanks.
Chris
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This is a boom in rubbish. The sceptical part of me says that private equity and venture capital know that it’s garbage, but “let’s just foist it onto unsuspecting mums, dads and fund managers who aren’t old enough to remember the dot com boom” and keep dancing until the music stops. Same old tricks.
These companies being listed don’t make any money, so a P/E ratio is meaningless because anything divided by zero is “infinity”, by mathematical definition and thus, impossible to value properly.