<story><title>Why Did a Chinese Peroxide Company Pay $1B for a Talking Cat?</title><url>https://www.bloomberg.com/news/features/2017-05-17/why-did-a-chinese-peroxide-company-pay-1-billion-for-a-talking-cat</url></story><parent_chain><item><author>alnitak</author><text>How did you get to know all those things you&amp;#x27;re talking about? Where does one even start decrypting finance jargon and &amp;quot;possibilities&amp;quot;?</text></item><item><author>sushid</author><text>Why couldn&amp;#x27;t these companies issue more shares in secondary offerings at 100x their PE ratio, hoard all the cash, and wait for the crash to do a buyback?&lt;p&gt;Seems like a good way to hedge against a downturn. Of course, per usual, retail investors will lose out as usual, but the companies could end up just fine.</text></item><item><author>dannylandau</author><text>In short, pretty bizarre financial engineering going on with Chinese industrial companies buying western gaming start-ups for enormous sums in order to buttress their (chinese) own bottom line and keep the shares going up on the Chinese stock market.  This is a type of pyramid scheme that is bound to come crashing down at some point, and bankrupt every single one of these companies.</text></item></parent_chain><comment><author>lmm</author><text>Read Matt Levine&amp;#x27;s column on Bloomberg. All of them, and the ones from when he worked for Dealbreaker as well. He tells the stories in a clear way that makes sense, cutting through a lot of nonsense, and so you understand the key points even without getting the jargon, and then you gradually pick up the jargon too.</text></comment>
<story><title>Why Did a Chinese Peroxide Company Pay $1B for a Talking Cat?</title><url>https://www.bloomberg.com/news/features/2017-05-17/why-did-a-chinese-peroxide-company-pay-1-billion-for-a-talking-cat</url></story><parent_chain><item><author>alnitak</author><text>How did you get to know all those things you&amp;#x27;re talking about? Where does one even start decrypting finance jargon and &amp;quot;possibilities&amp;quot;?</text></item><item><author>sushid</author><text>Why couldn&amp;#x27;t these companies issue more shares in secondary offerings at 100x their PE ratio, hoard all the cash, and wait for the crash to do a buyback?&lt;p&gt;Seems like a good way to hedge against a downturn. Of course, per usual, retail investors will lose out as usual, but the companies could end up just fine.</text></item><item><author>dannylandau</author><text>In short, pretty bizarre financial engineering going on with Chinese industrial companies buying western gaming start-ups for enormous sums in order to buttress their (chinese) own bottom line and keep the shares going up on the Chinese stock market.  This is a type of pyramid scheme that is bound to come crashing down at some point, and bankrupt every single one of these companies.</text></item></parent_chain><comment><author>frgtpsswrdlame</author><text>If you&amp;#x27;re serious about getting to know it, I would torrent some level 1 CFA study material and skim it in bits and pieces. Really though, I would avoid it. This jargon can rot your brain.</text></comment>