In my first article on Blackstone Group LP (NYSE:BX), I discussed why I viewed Blackstone as a risky investment in the summer 2015 market environment. My argument was that the company is particularly vulnerable to any decrease in market multiples and/or increase in interest rates. I asserted that BX's unique revenue/cash flow-generating model, which is influenced (in part) by market multiples outside its control, may be at risk should multiples stagnate or contract.
I followed that article up with a 2Q15 earnings article that highlighted what I viewed as evidence in Blackstone's 2Q15 earnings report that its distribution may peak in 2015/2016.
Since those articles, and despite nearly all sell-side analysts having a "Buy" on the stock (in...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|
|PRO Top long ideas returned 21.7% in 2016**|