IBT 1108 Executive Board Announcement

[squawk]

Nobody in this business makes 15% ROI, except maybe the caterers. 7-8% would be great for a frac. If they were making 15% Bombardier would never have sold them, no matter how tight cashflow is.

I think you are about right on the margins of 7-8%, and that would be attractive for investors, especially when you consider the plan as it is sketched out. FJ will be a growth and income company that could go public someday.

 

[gret]

This I doubt. 20%? No way they expect that margin.

Sorry...20% is a low figure. Private equity firms, which DAC is, all have models that call for a 25%, or better, return expectations.

Depending on the fund size and investment strategy, a private equity firm may seek to exit its investments in 3-5 years in order to generate a multiple on invested capital of 2.0-4.0x and an internal rate of return (IRR) of around 20-30%.​

http://www.streetofwalls.com/financ...ty-training/private-equity-industry-overview/​

 

[BlueNose]

Sorry...20% is a low figure. Private equity firms, which DAC is, all have models that call for a 25%, or better, return expectations.

Depending on the fund size and investment strategy, a private equity firm may seek to exit its investments in 3-5 years in order to generate a multiple on invested capital of 2.0-4.0x and an internal rate of return (IRR) of around 20-30%.
​

http://www.streetofwalls.com/financ...ty-training/private-equity-industry-overview/
​

That's a return measured at the sale, upon exiting the investment. That may well be what DAC aims to achieve, though there's not a very good track record of that in this sector of aviation (ask HIG, who had the same hopes when they bought FO from RTN, or even uncle Warren for that matter with NJA's historic returns). These guys are talking about past annual operating returns in the 15% range which, if true, would have make the company unaffordable for DAC. AAPL is in the low 20's, for Pete's sake; LUV has been 3-5%. KR only buys low, and with other people's money, and a company consistently returning 15% would be expensive. But then what do I know?

Past history would indicate that KR and his inner circle will do fine in the deal, outside investors not so much, and rank-and-file employees worst of all. But don't worry, Flex is special and I'm sure this time is different.

Old poker proberb: If after ten minutes at the table you do not know who the patsy is - you are the patsy.

 

[squawk]

I am fine with them making a load of money as long as I am well compensated and have a life. If they want to treat pilots any other way, I hope they go broke.

 

[Club ORD FO]

Nobody in this business makes 15% ROI, except maybe the caterers. 7-8% would be great for a frac. If they were making 15% Bombardier would never have sold them, no matter how tight cashflow is.

Bombardier sold us because of the airplane order that was also bundled.

 

[gret]

That's a return measured at the sale, upon exiting the investment. That may well be what DAC aims to achieve, though there's not a very good track record of that in this sector of aviation (ask HIG, who had the same hopes when they bought FO from RTN, or even uncle Warren for that matter with NJA's historic returns). These guys are talking about past annual operating returns in the 15% range which, if true, would have make the company unaffordable for DAC. AAPL is in the low 20's, for Pete's sake; LUV has been 3-5%. KR only buys low, and with other people's money, and a company consistently returning 15% would be expensive. But then what do I know?

Past history would indicate that KR and his inner circle will do fine in the deal, outside investors not so much, and rank-and-file employees worst of all. But don't worry, Flex is special and I'm sure this time is different.

Old poker proberb: If after ten minutes at the table you do not know who the patsy is - you are the patsy.

What is "annual operating returns"...and what is the 15% of? Is this suppose to be a percentage of sales, investment, or something else. If you are talking about dropping

IRR, or internal rate of return, is a calculation used to measure the total returns from an investment taking into account the period the returns were generated. It takes into account current cash flows, the proceeds upon disposition, and the life of the investment.

 

[squawk]

What is "annual operating returns"...and what is the 15% of? Is this suppose to be a percentage of sales, investment, or something else. If you are talking about dropping

IRR, or internal rate of return, is a calculation used to measure the total returns from an investment taking into account the period the returns were generated. It takes into account current cash flows, the proceeds upon disposition, and the life of the investment.

Isn't Google wonderful

 

[BlueNose]

What is "annual operating returns"...and what is the 15% of? Is this suppose to be a percentage of sales, investment, or something else. If you are talking about dropping

IRR, or internal rate of return, is a calculation used to measure the total returns from an investment taking into account the period the returns were generated. It takes into account current cash flows, the proceeds upon disposition, and the life of the investment.

Never mind.

 

[gret]

Isn't Google wonderful

You can"t answer the question...can you! So instead you try and dumb down everyone...good job...

 

[gret]

Never mind.

Repeat---

You can"t answer the question...can you! So instead you try and dumb down everyone...good job...