The costs of running this huge site are paid for by ads. Please consider registering and becoming a Supporting Member for an ad-free experience. Thanks, ECF team.

Juul Write Downs Started

Discussion in 'Media and General News' started by iVapeDIY, Oct 5, 2019.

Image has been removed.
URL has been removed.
Email address has been removed.
Media has been removed.
  1. iVapeDIY

    iVapeDIY Senior Member ECF Veteran

    Sep 1, 2017
    Toronto, Canada
    Major Juul investor writes down a third of its value
    https://www.bizjournals.com/sanfrancisco/news/2019/10/04/majorjuul-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.

    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.
    See also ...
    The nasty, cannibalistic Wall Street frenzy begins.
     
  2. Rossum

    Rossum Surly Curmudgeon Verified Member ECF Veteran

    Supporting member
    Dec 14, 2013
    SE PA
    Setting Juul's "valuation" based on a one-time buy in by a "black knight" was never realistic. The story I've heard is that Juul's management had declined a number of more reasonable offers from both MO and BTI because the really didn't wish to be associated with an Evil Tobacco Giant™, but both kept sweetening the pot until MO made an offer that they couldn't refuse.
     
    • Agree Agree x 1
    • Informative Informative x 1
  3. iVapeDIY

    iVapeDIY Senior Member ECF Veteran

    Sep 1, 2017
    Toronto, Canada
  4. iVapeDIY

    iVapeDIY Senior Member ECF Veteran

    Sep 1, 2017
    Toronto, Canada
    SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Altria Group, Inc. of Class Action Lawsuit and Upcoming Deadline – MO

    NEW YORK, Oct. 08, 2019 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Altria Group, Inc. (“Altria” or the “Company”) (NYSE: MO) and certain of its officers. The class action, filed in United States District Court, for the Eastern District of New York, and indexed under 19-cv-05579, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired Altria securities between December 20, 2018 and September 24, 2019, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

    If you are a shareholder who purchased Altria within the class period, you have until December 2, 2019, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.
    Dismiss Notice