But that is nothing compared to the likely upside.
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.
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.
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.
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.
Smartwatch makers, like Pebble, likely have too much upside ahead of them to concede at this moment.
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.
"The current levels are significant and will most likely result in upside market action prior to the election," Mr. Clark said.
A BofA Merrill Lynch Global Research report says that the shutdown is likely to "put upside risk" on the budget deficit because of the threat it poses to the collection of government revenues, shutdown costs and other demands: "Inside the Beltway this may look like a 'zero-sum game' where one party's win is the other party's loss.
