i think we've heard this argument numerous times over the last decade.

Next bull market like 2020/21 we'll see a rush of new listings. Yes there's more paperwork, yes it's a headache - but they usually get higher valuations than anything you can get in the private sphere when they eventually try to sell.

Public markets are great because they (generally) give you access to lower cost capital. Outside of that, I agree with Bevan that there's a lot of downside. Not least is the fact that you now have a daily quoted price that can be a huge distraction, and it tends to shrink timeframes for investment decisions. Lots of perverse incentives.

I'm sure a lot of companies list just as much for the "prestige" as anything else (often egged on by the middle men looking to make a quick buck). And, for many, it's really just an exit path.

I'm generally (but not always) wary of very newly listed companies.

But I agree @Mujo -- when the bulls are running, and valuations high, plenty of companies wont be able to resist the lure.

@Mujo agree perspective is a funny thing, when i see this headline, i think the public markets are not offering enough in price, so the flip side is they are good value. makes sense at the small/micro end atm imo.

That's pretty much what Carlos from Microequites was saying @Solvetheriddle

Intellectually it's a great time, but I won't complain if we see some value gaps close! As someone who's largely fully deployed, I'll take some irrational exuberance please lol

@Strawman yes, i am a large cap guy, and have been quite critical of valuations in the small/micro end in the past. not now. even i can see there is value in many micros. imo. The things matter, are that the length and amplitude of a bear market is impossible to forecast, so the ability to last through it for investors (financially/mentally) and companies is critical. good stock picking in micros at these levels in time will be well rewarded, imo, ie not all micros will make it or have devastating dilutive capital raisings ,avoid these. as im sure you are well aware

i think these times are when you earn your salt as an analyst, may the force be with you all!

I guess the question is how much debt is sitting on the balance sheet? That might be the big difference between buying all of Myer compared to DJs. Myer is net cash and recently appears to be generating a lot of cash.

I think Myer is the better business, they have been rationlising the business, online is growing well and telling shopping centres "ok, cya, you can refit and fill 1000's m2 of floor space if you don't meet our rent demands".

I'm taking a wild guess but Myer could potentially be (or one off) Australia's largest online retailers that has a physical store presence (besides the supermarkets)??? I don't think the DJs online business is as strong?

To be completely honest, I was only referencing Myer as it's the only thing vaguely similar. Completely appreciate it seems to be a much, much better business. It's like wondering why MySpace has just sold for $150 mil when FB/Meta has a valuation in the hundreds of billions.

Maybe this begs the question, what is it worth buying for anyway? My theory is that it will be totally liquidated with a tidy profit that looks good for Anchorage. Not a bad strategy.

The online business is woeful, they have no pricing power and even when there are sales it's often 10% higher than other stores, no brand loyalty, no real identity with anybody under 60 anymore.

Here's what I would do (you know, because obviously I'm a business genius):

• Sack 70% of the workforce (sorry).
• List any properties for sale, get them sold and rent back the spaces on short-term leases. (deductions, woo!)
• Negotiate with Westfield and the other owners for rent lowering or walk out (sure, contracts would probably be decades long but we will see. Worst case negotiate to sub-let to multiple brands because most stores occupy multiple floors)
• Bye-bye upper management but if you want to stick around for some commissions let me know
• Partner with something like a Kogan or Amazon or spend a bit of money promoting the fire sale of the century.
• Dispose of everything at ridiculous prices. Could also check what suppliers have excess goods that they are willing to offload at significantly discounted prices.
• Make sure everybody knows this is a one-time thing for a couple of months and then take the profits, do some accounting magic and write off the rest.

@GazD I would value a private business investment in a similar way to any other investment, listed or not.

The first thing I would be looking at is expected return on investment (ROI). How reliable/predictable are the profits likely to be? Is this the best return you could expect for your money? What does the risk/return look like? (Eg. Are you better off somewhere else, eg. with a proven profitable ASX listed business with consistently high ROE)?

What are the expected gross and net margins? Will inflation put pressure on the margins? Is the investment passive (ie. does it require your input, labour etc.)? Is the business labour intensive? Is the business scalable? Does it have, or will it require debt now or in the future? Can you get out of the business easily if you change your mind? What are the costs to get in and out of the business eg stamp duty, selling costs? Could you sell the business quickly without a huge discount if you needed to? Is property included in the investment (that would make a big difference to how you would value it)? Is it capital intensive and require replacement of depreciating assets. Is competition a threat now or in the future?

They’re is a lot to consider whether the business is private or listed.

Good luck!

@GazD not much experience, but some. i would try and find some comps that have traded valuations. adjust accordingly. remember unlisted businesses trade at a big discount to listed, at least 30% maybe much more. good luck