“Why do you say their stock is not investable ?”

Let me try and answer that in two parts :

1. As we are about to see, the true Enterprise Value of Daimler is about to contract dramatically

- where I am defining Enterprise Value or EV from the viewpoint of a Private Equity investor

i.e. EV = EBITDA x valuation multiple of say 4~6x

Now the Enterprise Value of a company equals the sum of its value to its Debt holders plus its value to its Equity holders

EV = Debt + Equity

As EBITDA shrinks then so will EV

As EV shrinks but Debts increase, eventually the value of the Equity component falls to zero