Blackstone Group Could Shine After Cliff Deal


Image by: Ken Lund
By Steven Morrison II

Some big-name speculators and TV talking heads are high on The Blackstone Group (BX) should the U.S. resolve the fiscal cliff crisis sometime soon. And the way talks are going, that could be anytime now.

So you better get yourself situated before that window closes.

But why Blackstone? Why are guys like Cramer from Mad Money so hyped about the company and what does the fiscal cliff have to do with it? While Cramer’s advise shouldn’t necessarily be taken as gospel, he makes a strong case for gambling on BX.

Always Bet On Black

First, let’s dig into the company a bit. The financial services and asset management firm is a big player in investment circles with an impressive track record that includes the likes of La Quinta, Allied Waste, TRW Automotive, Hilton Hotels, Houghton Mifflin and The Weather Channel.

Famously, the American company grabbed entertainment headlines as over the years it has dabbled in the theme-park game with current or one-time investments in top-tier brands such as Sea World, Busch Gardens, Universal Studios and Legoland.

Blackstone’s deep portfolio of real estate holdings (a decade-long commercial land grab) and private equity investments (one of the world’s largest in this area) would make even Wall Street celebrity billionaire Warren Buffett envious.

The reason investors are thinking Blackstone is that over the course of six months, the stock rose an impressive 27%. That will get anyone’s attention, especially as the United States is still in the midst of a recovery.

Solid Performer Gets Help From The Sidelines

But it isn’t just those rock solid returns that has everybody all excited. Once the fiscal cliff mess is sorted out, it is expected that sideline money will come pouring into the markets, and one of the likeliest, safest places to park that loot is Blackstone.

And look for Blackstone to go gangbusters in 2013 as it is estimated that the company will launch somewhere in the neighborhood of eight IPOs.

Right now Blackstone is considered a steal. But not for long.