It found that existing shareholders did well out of such deals because, the authors reckoned, the boss had a better idea of the likely upside of escaping the short-term pressures of the stockmarket, and was willing to pay for it.When KKR bought RJR Nabisco, it paid too much and lost a fortune.
"Investors are paying up for numerous positives in the business--strong expansion and growth opportunities, great margins, likely upside to estimates," he wrote in a report to clients.
But that is nothing compared to the likely upside.
In the short term, better market conditions derived from a likely Bolsonaro victory offer clear upside to Brazil growth estimates, says Nomura's Castro.
For Groupon, which is expected to report second-quarter results in late July or early August, "changing foreign exchange trends and still uncertain macro conditions will likely moderate potential upside to Street estimates," Mahaney wrote.
Pacific Crest Securities' Andy Hargreaves, who maintains his "outperform" on Apple shares, suggests today that Apple's good news is already baked into shares and that will likely limit upside, at least in the near-term.
While these factors will likely put some pressure on Dropbox's offer price, we still believe the company has substantial value, presenting some significant potential upside to the likely IPO price.
Weak Chinese manufacturing data along with rising European bond yields are likely to cap any potential upside.
But we think that you can live with that because the ultimate upside is that we're likely to see a big upside in this stock one way or the other.
He thinks his finding could have a major upside: It could help predict when a cancer is likely to metastasize.
However, it now looks expensive trading on a 12 month forward PE of 36 times versus historical average of 21 times...... the valuation now looks full and this is likely to limit upside from current levels unless we see a material upside to gold and silver prices.
