Colonel Electric, before it was demoted, used to have really great assets. A jet engine division. All kinds of finance. Real estate. It even owned NBC. But then everything kind of imploded and the stock price sank and it's likely that ASSET STRIPPERS are looking hungrily, hoping to buy the whole company for a song. Once they get it, the goal will be to auction off whatever key parts were left of the once-great conglomerate.
That process is called asset stripping (which is very different from what the process would be if the same term had the "et" removed).
For a more street-level example, think of buying a rundown junker of a car and selling it for parts. The amount you can get from the bits and pieces (the tires, the engine, even the airbags) is more than the whole car is worth...it's just a matter of putting in the work to strip it down.
Related or Semi-related Video
Finance: What is Disintermediation?9 Views
finance a la shmoop what is disintermediation? all right people amazon
disintermediated the book industry then the DVD industry and pretty much well [Amazon pacman eating books and CD's]
every industry including groceries and soon cars life insurance and robotic
Russian brides not kidding is coming disintermediation happens when one
company with a better value proposition to a group of customers inserts itself
between that customer and the old sellers or old ways of doing business [New company appears in between store and old company]
well the value proposition can be based on price like when threshing machines
used for the harvesting of farm products simply made competition with farms using
human labor well, a losing battle the machines ended up being way cheaper
so automated farms could deliver you know sorghum to whoever buys sorghum [People shovelling sorghum]
what what is sorghum anyway that's what happens when you don't brush your teeth
or whatever anyway and they delivered it at half the price of the cost of human
delivered sorghum yeah that's disintermediation all right well think
about what the automobile industry did to the horses breeding industry not to [Horse galloping on a track and race car drives by]
mention the automobile breeding industry and it happened in the modern highly
rival risk internet world as well think about what Google search did to Yahoo in
more recent years and yeah Starbucks well it seems safe for now but what [Starbucks employee making coffee]
about when coffee tube comes along allowing all of us to inject espresso
via IV into our blood streams remember the best part of waking up is coffee [man singing about coffee]
tube in your veins then a commercial remember that song
ask your parents
Up Next
What is Coupon Stripping? Coupon stripping is the process of taking a coupon bearing bond and separating the coupons into individual zero coupon se...
STRIPS are government-backed, zero coupon bonds. And yes, they keep their clothes on.
What is a Corporate Raider? A corporate raider is a predatory investor who purchases a significant bloc of stock or debt in a public company in ord...
What is a Dutch Auction? A Dutch Auction is either one where closed quantity and price bids are entered and the price is set at the highest price t...