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Investing with Wilbur Ross

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June 11, 2014 – Comments (8)

Don't know how many noticed the new IPO that came out last week for WL Ross Holdings, currently listed as WLRHU, (WL Ross Holdings Units) which included a warrant to buy half a share at $10.00. After the warrants are excercised or expired, it will change to WLRH.

I am a fan of his and happened to catch him on CNBC when he was talking about it, and explaining to them what a "blank check company" was. Also known as SPACS.

A number of shipping companies have used them to good advantage, primarilyl NM.

To make this work in an IPO you have to be someone who investors have a lot of respect for, since at the time of purchase, you don't even know what they are planning to buy.

I get the idea it will be something in shipping, but if anyone knows for sure, I would appreciate your thoughts.

He told them to think of it as a publicly traded equity investment company.

He is not someone who is known to "buy high and sell low", but rather a shrewd investor who takes advantage of bargins, and has been very successful in doing so.

I am not in heavy, but decided to "go along for the ride" to see where it takes me. After all, it is not everyday you get to "invest with Wilbur".

Not allowable as a pick in CAPS yet, but when it is, I will be picking it.

It is currently trading at just over a 2% premium from the initial public offering price.

It is not huge (about a half billion offering), but may be worth a look.

JMO and worth exactly what I am charging for it.      

8 Comments – Post Your Own

#1) On June 11, 2014 at 4:19 PM, Mega (99.97) wrote:

Any idea what the cash/share compensation will be? Some SPACs like PAH pay the sponsors and management insane amounts of money.

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#2) On June 11, 2014 at 9:52 PM, TMFDeej (99.25) wrote:

Super cool find, Teacherman. I'm going to have to take a closer look. 

Jason 

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#3) On June 12, 2014 at 11:14 AM, Teacherman1 (27.69) wrote:

Mega, I have not read the "prospectus yet", so I don't have any further information at this time.

As I said, I went in light, and did so only because it was Wilbur Ross. If it had just been any SPAC, I would not likely have gone in, but he is not in need of "skimming off pocket change" or in need of a job.

I did see from a Newswire link on Yahoo, that the one half share warrant has an exercise price of $5.75.

Here is the link. http://finance.yahoo.com/news/wl-ross-holding-corp-completes-213900878.html 

I seem to recall that he was looking at doing a public offering back in April, of a privately held company, in which he (his firm) had a $1B stake, which was in the shipping business. I think it was called Diamond Shipping, or something like that; which owned 30 vessels, and was looking to add 10 more. I don't think they added them, so maybe it has something to do with that.

I am sorry for the "sketchy" information, but I had to take my wife back to the hospital for "follow up surgery" from her hip replacement, so have been out of touch for the past few days.

Will post more as I find more out.

Jason Thanks for the comment. Hope you can find out more than I know now.

As always, do your own DD, but just wanted to give a "heads up" for anyone who is a "fan" of Wilbur Ross.

JMO and worth exactly what I am charging for it.  

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#4) On June 12, 2014 at 2:28 PM, Teacherman1 (27.69) wrote:

Here is a link to the SEC filling, if you have a lot of time you want to spend reading.

  http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001144204%2D14%2D036346%2Etxt&FilePath=%5C2014%5C06%5C09%5C&CoName=WL+ROSS+HOLDING+CORP%2E&FormType=424B4&RcvdDate=6%2F9%2F2014&pdf=

Don't know if it will tell you anything that will make you want to invest or not invest, but will provide you with more information than you have now.  

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#5) On June 12, 2014 at 2:41 PM, BroadwayProducer (< 20) wrote:

Teacherman, I know you like DCIX, but are you staying away from TEU?

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#6) On June 12, 2014 at 7:10 PM, TSIF (99.96) wrote:

Doing a quick look, I'm a little surprised at this one on for you...it's a $500M market cap company...way to big for you!!  :)

 All the best...just click on the contact us, request a ticker and they will add it.  Volume looks pretty  low, it may not be pickable after the first day it's added, so I usually ask for tickers first thing in the morning and pick it as soon as Richard replies with an email that it' in the system.  As an IPO, it should be pickable longer, based on average volume, but it doesn't always track.

Also when they reticker to the WLRH, you may have to put in a request.  I use "other" on the contact us menu for those.

I don't know who Wilbur Ross is, I must live in the boonies.  I'm not a fan of too many investor services/hedgies/etc.  There aren't too many people, (if any) that I'd give a "blank check too", but the warrant option depending on how long they are good for might be interesting.

Good luck, with Wilbur and with the wife...she needs to be more mobile so she can keep you in line! 

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#7) On June 13, 2014 at 10:59 AM, Teacherman1 (27.69) wrote:

Thanks TSIF. I can't believe you don't know who Wilbur Ross is.:)

Think INVESCO. He is the reason I bought back into IRE, when he, Prem Watsa? and others got into it.

He is an expert at finding "temporarily" undervalued companies and making them "shoot up".

This will be much bigger than $500M before it is all over, he has said as much.

Concurrently with the IPO, he bought 20M warrants for $10M to $11.5M, to purchase at what would amount to $11.50 per share, and there will be more when the IPO warrants are exercised.

I will contact Richard to see about getting it pickable in CAPS.

As for my wife getting more mobile, I am trying my best to keep her from doing that. She is the kind of person who over estimates her ability to do things, and she needs to give her hip time to heal.:)

Volume is low right now because everyone is waiting to see what they are going to do with the money when they cash the check.

She is calling for another "pain pill" now, so I have to "limp" down the stairs and give her one.:)

Find some good companies for me.

By the way, I am in IMRS at $1.08 for real now, but have more than I want for a longer term hold. Hope the "day traders" help me out. :) 

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#8) On June 13, 2014 at 9:04 PM, TSIF (99.96) wrote:

I was tempted to average down, but got "busy" doing other things.

 One thing about my down thumbs, it tells you where NOT to waste time, at least at that price level.

I actually have a few upthumbs on my list that are small cap, but need to do more DD.  I accidentally closed my Raly upthumb when I put my "stop limit" into caps into the wrong column... I hate when I do that, but on some of my "trades" on CAPS once they are positive I tickle up a close limit to protect my gains. :)

Sounds like the balance between "mobile" and "behaving" while healing is a fine line with your spouse...sounds like she's inherited some of your "traits" over the years...???  :)

 

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