The Suning Commerce Group

[compile]

yeah. I wish I understood more/articles were translated more clearly about whats actually happening, this whole suspension of 5.8% of their float etc is... bizarre to say the least.

The CCP froze 5.8% of their value because it equals all their debts. If the company cannot/won't repay them they'll take over the company and use that 5.8% to pay off everything.
Suning has not traded on the Shenzhen Stock Exchange since June 15th, which is not a good sign.

 

[crzdcolombian]

I mean a company bigger than Amazon owning us could be a blessing in disguise my biggest concern is if this was on option why did they make that awful deal with the US hedge fund!

 

[Universe]

well, I think:
1 - there's no 'need' to sell to a vulture fund. They normally get involved if you need financing (e.g. Milan). We'll just sell to whoever offers the best price, and a vulture fund isnt going to want to pay above market, whereas someone who is willing to put the work into the club and sees the potential for profit is more likely to do it

Mate what are you talking about. We just got a €250-300m loan from Oaktree Capital who are a bigger vulture fund than Elliott. They're already involved.

Given there's zero indication that we'll be able to repay that loan, the most likely scenario right now is that we'll default on our loan, much like Yonghong Li did with Milan, and Oaktree will take over ownership, much like Elliott with Milan.

We just have to hope that we follow Milan in another trend, and that is the obscene luck they got from Elliott's sudden change of style - uncharacterisitcally going from a mercilesss vulture fund to a surprisingly tolerant owner, willing to absorb a great deal of losses.

Knowing our luck though, while Elliott cover Milan's deficit, Oaktree will strip us for parts and sell us off like a decommissioned cruise ship 😁

 

[.h.]

Any evidence to back that up? Elliott were the ones in court pursuing Argentinian bonds they bought up on the cheap that they refused to take a haircut on. I'm not awarae of similar issues with Oaktree, but I'm not really au fait with their history

As far as I can see, e.g. here, https://en.wikipedia.org/wiki/Oaktree_Capital_Management, they take over distress companies and try to improve them by professionalising them, increasing revenues, sorting out operations, etc. Which is, to be honest, exactly what I've said for a long time we need. I dont think they're a vulture fund in the sense of Elliott - e.g. firesale and strip and peace out.

 

[Universe]

Distressed assets = vulture fund. Perhaps their reputation isn't as notorious as Elliott (for reasons such as that high publicity Argentina sovereign bonds incident) but they're exactly the same thing.

 

[.h.]

Not really.

You can buy failing businesses with a view to making them succeed, and indeed, that's a very common pattern for private equity

There's a difference between that and toxic approaches where you buy bonds at 10c on the $ and then expect to be paid in full for it, tbh. Or, for example, buying an asset to strip-sell it and then take the cash. In the latter case, someone just wants RoI on their investment and will do anything to achieve it. In the former, you are trying to add value to the business and sort out its value proposition and bottom line to make it profitable so you can re-sell it as a whole (albeit some sub divisions may get sold off that aren't part of core USP, but I dont think that'll be a major concern at Inter atm)

I've always said I wanted someone to come in and professionalise this team, make it run in a self-sufficient fashion, and then probably look to sell it off at a profit.



Buying a shit company for £500, sorting it out and making it worth millions, and then selling it for £millions is perfectly fine, not toxic, and a perfectly sensible thing to do tbh.

 

[.h.]

(To be clear, I'm speculating about Oaktree, I dont really know anything about them. Please take my points with a pinch of salt, but the key point is there - investing in distressed assets isnt the same as a vulture fund. Oaktree may still be a vulture fund, though.)

 

[CafeCordoba]

The long-term game however in that scenario (Oaktree puts Inter in in order financially) is that they sell to some American owner who will use Inter as United, Liverpool etc owners use their clubs. To make profits for themselves.

Surely I KIND OF could be happy at United's position when it comes to owners, but maybe not. They are making money to their owners every year. Sporting results have been bad for YEARS but the owners really do not care. As long as the product is fine FOR THEM. Which it is as it keeps making money.

And, it's super long way to the state of United, or even Liverpool. It surely would be more stable status so it probably is still better. Well surely better than current turbulent times.

 

[.h.]

I dont think there's any real basis for that, tbh. Yes, sure, United are a shitshow, but I dont think that's how Liverpool is being run? They've put in some money to Liverpool, but more than anything, professionalised the club - hired a great coach, built out infrastructure, invested very sensibly...

 

[sdvroot]

https://twitter.com/i/web/status/1411454884981977091

Amazon looks great!

 

[CafeCordoba]

I dont think there's any real basis for that, tbh. Yes, sure, United are a shitshow, but I dont think that's how Liverpool is being run? They've put in some money to Liverpool, but more than anything, professionalised the club - hired a great coach, built out infrastructure, invested very sensibly...

Basis on what? Americans are in the European football only for the money. I'd say only exception is Rocco Commisso who is filthy rich and could technically buy United few times from Glaziers.

 

[.h.]

Well, hang on. We're conflating a few things.

Glazers are bad owners because they take high dividends and dont reinvest heavily into the squad (but they could do).
Liverpool are great owners, for the most part. They've made the club more valuable and if they do come to sell, they'll profit based on the increased valuation of the club.
Arsenal are partly a mess because of their owners, partly because of stadium financing IIRC.


Milan have done a good job with Elliott, Roma obviously get ransacked by that's as much FFP as it is their ownership tbh. You certainly dont buy Roma if you're just in it for the money.


I would have beef with owners who take dividends heavily frmo the club (albeit that would mean we're t least profitable which is a good step forwards). I dont mind an owner who wants to sell for a mega profit, because it means they've increased the valuation of the club appropriately.

 

[William]

https://twitter.com/i/web/status/1411454884981977091

Amazon looks great!

Amazon or Motorola for me.

in reality it will be none of these.

 

[ADRossi]

None of Apple, Samsung, Microsoft, or Amazon are poorly run enough to "invest" money as a kit sponsor.

 

[ciamac]

Wasn't Samsung Chelsea's sponsor?! nothing wrong with that. Motorola on a different note, as much as I'd love them , can't pay their own employees wages! Tesla would be dope AF tho. I know they're not into advertisement as much but still.

 

[TheNetworkZ]

Tesla don't run any ads as far as I know. It wasn't something I realized until I heard it mentioned not too long ago. It would be cool though.

 

[vasilios]

Amazon? Microsoft? Its probably going to be something like dildos.com

 

[Puma]

Amazon? Microsoft? Its probably going to be something like dildos.com

I am guessing that Suning and dildos.com are connected in some way. Perhaps Suning are the cunts in the equation.

 

[.h.]

I see we're feeling very optimistic today...

 

[Universe]

Amazon? Microsoft? Its probably going to be something like dildos.com

Either that or it’ll be some unknown investment fund or shell company for the purposes of money laundering.

The Hedge Fund Name Generator

The Hedge Fund name generator produces sometimes original and funny hedge fund names based a on cutting hedge randomization algorithm

www.hedgefundnamegenerator.com

Can’t wait to see our jersey adorned with “Silver Lake Capital” or “Golden Hill Securities”