Monday, July 27, 2009

More Payback in Years

In line with the previous post, here are more scenarios how payback in years can change drastically with the vagaries of modern life

Bought a water stock – 33 yrs
The CEO got married – 99 yrs
To a scientist nominated for the Nobel Prize for water purification – 12 yrs
They divorced – 33 yrs

Bought a condom stock – 35 yrs
Satellite failure stopped the broadcasting of global sports channels for 2 weeks – 16 yrs
False alarm, satellite’s working! – 33 yrs
Korean melodrama satellite fails – 8 yrs
Global power failure caused by Al Qaeda – 2 yrs

Bought a telco stock – 18 yrs
The co. announced that an ex-CEO of a mining co. will take over as CEO – 180 yrs
The new CEO divested poor performing subsidiaries and incurred losses of USD 4bn – 625 yrs
The new CEO got fired – 18 yrs
The subsidiaries recovered – 68 yrs
The telco co. decided to invest in the subsidiaries again – 255 yrs

Here's the bonus for this week!
List of most anticipated IPOs and their relevant payback years

Twitter IPO – 50 seconds
Facebook IPO – 2 hrs
Facebook acquires MySpace – 120 yrs
Twitter acquires Facebook + Myspace – 2,718,28 1,828,4 59,045, 235,360 seconds

Iridium Satellite Phone Returns! IPO – 125 yrs
Lehman Brotherhood Restructured IPO – 214 yrs
Revenge of the Fallen: Mega-Electron General Motors IPO – 369 yrs

Shanghai Stock Exchange US$100bn IPO – 88 yrs
Bird Nest Stadium IPO at $18 – 188 yrs
Jackie Chan Franchise IPO – 288 yrs

Temasek Holdings IPO, CEO Singa the Lion – 440 yrs
Wimbledon Tennis IPO, CEO Aggassi – 1,066 yrs
Tour de France IPO, CEO Lance Armstrong – 1,789 yrs
Terracotta Army Exhibition IPO, CEO Zhang Ziyi – 6,000 yrs

Jurassic Park Ride IPO, CEO T-Rex – 65mn yrs
Google Earth IPO at $3141.59265 – 4.3bn yrs
STAR WARS Franchise IPO, CEO Chewbacca – 13.5bn yrs


  1. Let me try one:

    An electric utility: 10 years.

    An electric utility that decides to "enhance shareholder value" in various ways: 15 years.

    An electric utility whose management thinks it can become a growth company through acquisitions: 20 years.

    An electric utility whose rising stars think the above data points paint a flattering picture: 30 years.

    "I tell ya, if we make 20 years it means we have a P/E that's WAY above the industry norm..."

  2. Sounds like Enron :), anyways thanks for the contribution!