Major juul investor writes down a third of its value
https://www.bizjournals.com/sanfran...juul-investor-writes-down-a-third-of-its.html
Hedge Fund Suspects Vape Stock Worth Less Now Than Before All Of The Deaths
https://dealbreaker.com/2019/10/darsana-juul-writedown
The nasty, cannibalistic Wall Street frenzy begins.
https://www.bizjournals.com/sanfran...juul-investor-writes-down-a-third-of-its.html
juul Labs investor Darsana Capital Partners wrote down a third of its investment in the San Francisco-based e-cigarette maker in a move that values that company at $24 billion, The Wall Street Journal reports.
It's a reversal of fortunes for the New York hedge fund, which saw the value of its investment rise on paper when Altria Group (NYSE: MO) acquired a 35 percent stake in Juul with a $12.8 billion investment in the company, the Journal reports.
Darsana isn't alone in dealing with the ramifications of Juul's struggles, from an increasing number of government bans to a mysterious vaping illness, all explored in a Business Times cover story published Friday. Not only are a number of other hedge funds that invested in Juul facing the potential need to write down their investments in the controversial company but so might Altria, its largest investor. We might know more when the tobacco giant reports its third quarter earnings Oct. 31.
It's a reversal of fortunes for the New York hedge fund, which saw the value of its investment rise on paper when Altria Group (NYSE: MO) acquired a 35 percent stake in Juul with a $12.8 billion investment in the company, the Journal reports.
Darsana isn't alone in dealing with the ramifications of Juul's struggles, from an increasing number of government bans to a mysterious vaping illness, all explored in a Business Times cover story published Friday. Not only are a number of other hedge funds that invested in Juul facing the potential need to write down their investments in the controversial company but so might Altria, its largest investor. We might know more when the tobacco giant reports its third quarter earnings Oct. 31.
Hedge Fund Suspects Vape Stock Worth Less Now Than Before All Of The Deaths
https://dealbreaker.com/2019/10/darsana-juul-writedown
In addition to the millions of lame idiots furtively inhaling fruit-flavored chemicals they clearly did not know enough about, all of the sick and dead vapers has been a real drag on the hedge funds that made a mint on arguably the stupidest trend with the most obvious endgame in history. The former are bummed because they can’t get their nicotine fixes in coffee or cereal or bubblegum flavors anymore, and also maybe because they’re gonna die from it without even looking cool like a smoker, and the latter are bummed because the former can’t buy those very lucrative flavored vape juices anymore, and also in the long run because if they all die, their stock will be worth less. At least one of those hedge funds is owning up to the new reality, albeit only to a certain extent.
Frankly, the math seems off, but since Juul will now quite assuredly never go public, we might never know by how much. Plus, don’t feel too bad for Darsana: It’s Juul stake may one day be worthless, but the now-hilariously-optimistic $150 per share Juul paid out in December will not be.
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The nasty, cannibalistic Wall Street frenzy begins.
