PBC lost 444 million dollars since March.

I doubt that' those #'s are in the same country of the real gross and nets of any dealings. That's too hard to believe, some would have to try to lose that much

 

That's a terrible writedown. Only a combination of dramatically decreased future expected cash flows and a high cash burn rate can account for that much of a writedown that quickly.

There were huge agency problems with the business structure to start with- ie, Al actually makes more money by overpaying his fighters than he does by managing the budget prudently. If you're looking for a silver lining here, it's that Al paid his fighters very well to make sure he got fatter management fees, too. So at least he wasn't the only one to profit off of Waddell & Reed's investment.

 

doesn't make a difference. Any successful business could take anywhere between 1-4 years to be profitable. It all depends on their strategy and business model.

Only a complete dumbass would complain about a company not being profitable in it's first 8 months.

 

If you are getting your news from Reddit then you are better off getting it from Youtube by a guy sitting on his back porch cutting videos in a ****hole in upstate New York.

 

No way these numbers are accurate that's the GDP of some 3rd world countries. No way in hell they lost that much.

 

:deal

 

DCF models take future cash flows into account.

A writedown to that extent only happens if future cash flows are revised downward. There are other ways to tweak the equation to get a lower result, but that's the only variable that would carry that kind of impact, realistically.

 

Wait: they have spent money on TV dates that they have not used yet... so you can´t really say that they have lost that amount.

 

Correct. That's considered an asset, and would be carried on the balance sheet just as any other asset, like cash, would.

They're not being punished for the time buys.

 

http://www.waddell.com/mutual-funds/total-portfolio-holdings.aspx?fundid=47&fundcode=406

http://www.waddell.com/mutual-funds/total-portfolio-holdings.aspx?fundid=43&fundcode=684

http://www.waddell.com/mutual-funds/total-portfolio-holdings.aspx?fundid=53&fundcode=852

These are the links to Waddell and Reed's holdings straight from the horse's mouth. Search for "Series H" to see the holdings. Add the three total values up, and that's where the OP got their total written down value from.

 

So, iDavid, they asked people for money to spend ... and they are spending that money. Got it.

It's sort of like you ask a bank to give you a loan to build an apartment. You take the money and build the apartment. There's no money left. You spent it all. But now you have an apartment. So you put renters in the apartment, collect rent, start paying back the bank and keeping some for yourself.

And, in a few years, the renters pay off the bank and you have a nice valuable property generating income.

Weird how that works?:hi:

 

what are you trying to say? I'm not following.

exactly... all these idiots think profit happens instantly should put a gun to their head

 

that could indicate a number of things..... could be marketing. Could be that showtime spent some money on the venture.

 

:good cool.
All this PBC talk has reminded me to take some business classes.