When a company wants to sell out, it will often hire an investment bank like Goldman Sachs (NYSE:GS) or Morgan Stanley (NYSE:MS). They will put together a pitch book that hopefully will engender strong bidding.
But some companies have a tough time generating much excitement. If anything, they may scare away buyers – even if the price tag is dirt cheap.
This may be the case with Roubini Global Economics (RGE), which is up for sale, according to a
report from CNBC.
The proprietor is Nouriel Roubini, an economist who only seems to predict harsh times — hence his nickname of Dr. Doom.
Roubini has made some big calls, with the most notable one being for the implosion of 2008. Yet even this wasn’t completely correct, since Roubini thought things would be much, much worse.
But he was savvy enough to maximize his media exposure and turn RGE into an operation with 85 employees and $14 million in projected 2011 revenue.
Yet there is a big problem: RGE is losing money. The forecast for this year is for a loss of about $2 million.
But won’t potential buyers look at the future prospects? Sure, and while RGE may not grow like a LinkedIn (NYSE:LNKD), the firm thinks it can increase revenue by 40% — in 2013.
This sounds good, but it’s a bit ironic. Doesn’t Roubini think the world economy will remain a mess?
Of course, there are still ways to make money from bad times – but so far, RGE hasn’t figured it out. Instead, it’s been mostly hedge fund operators like Jim Chanos who have been able to make the big bucks. But somehow, it seems unlikely these folks want to sell their firms. Simply put, they don’t need to.
Tom Taulli is the author of “All About Short Selling” and “All About Commodities.” You can also find him at Twitter account @ttaulli. He does not own a position in any of the stocks named here.