United Development Funding IV fka UDFI

[Davlund]

How and when will we ever see a cvr payment anyway. The way this merger/buyout went I’m none too optimistic. I kept a few shares of RC for sh**’s and giggles, just to remind of my dumb*ss investment decision. And it’s certainly turning out to be more sh**’s than giggles.
Is there another message board that follows RC by any chance?

[Phaedrus77]

Double whoops. Aren’t we capped at 38 cents (of RC book value) per CVR, or $12 million total?

How can RC value the CVRs at $15 million in that case?

[Phaedrus77]

Whoops. The $1.21 value is per CVR, which works out to $0.50 per UDF share.

So we gave away $6 of value for $2.58.

I wonder if Hollis and the team are opening up any new funds that I can invest in.

[Phaedrus77]

RC calculated the fair value of the UDF assets acquired as $182.5 million. The fair value calculation is based on "future cash flows and discount rates." Of course, you can play with the rates to make the value whatever you want it to be, but presumably the auditor would make them be somewhat honest.

$182.5 million divided by 30 million UDF shares is ~$6/share. We ended up with roughly $2.08 of RC stock (assuming $5 price of RC...obviously less if you've continued to hold it) and a CVR that RC values at $1.21 per share.

Good job team.

[Phaedrus77]

RC booked a $103 million bargain purchase gain on its merger with UDF. When it files its Q, we should get more info on what we sold them.

I still can’t believe shareholders approved the merger.

[Phantom Phlyer]

I sold the day I got the RC stock. It has only gone down since then, and at this point, by about 20%.

[TruthSheperd]

I think a lot of UDF ers may be selling which is contributing to the slide.

[Davlund]

Ready Capital, another winner, not!! Anyone going to ride it out?

[curious analyst]

Enterprising Investor. At Fidelity, my cost basis appears to be off. I paid 17/share for UDFIV. Fidelity has RC average purchase price at 37.22 and long. Today RC closed at 4.97. I do not know what to make of it. At first on March 12 just cash associated with a UDF dividend showed up. A couple of days later, the cost basis of RC and number of shares showed up, including reinvested dividends when I was still doing that.

[Enterprising Investor]

As an enterprising investor for almost 40 years, I have to deal with broker errors all the time. 
My shares were in a retirement account. The only number right was the cash distribution.
The worst one was when the IRS that we underreported interest income. Someone reported Original Issue Discount income for the company, which had been operating in Chapter 7 for years. I wasn't alone.

[Davlund]

Does anyonr else hold their UDF IV shares, now RC with Pershing via Centaurus Financial? My RC share's value is listed as Long (capital) gain!!! How can that be when some of those shares were purchased for $20 per share? How is it listed in some of the other brokerage accounts?

[MGOFF]

The point was missed completely, but proven at the same time.

[Phaedrus77]

I hope you’ve forgiven your mother for naming you mgoff. You have my sympathies.

[ofirm]

seriously? move on? you or they sell assets that they are supposed to be managing for us for 0.5 of book value with $3 of cash sold for $2.37 and $6.5 - $7
of loans that were added collateral against for $2.1. sorry, but I think nobody here will just go silently away.

[MGOFF]

Yes no doubt litigation is far from over. brave souls hiding behind pseudonyms need to move on

[Davlund]

RC declared a dividend on 3/3 I believe, ex div date of 3/31 and payable on 4/30. I assume we are eligible for the div of .125. Dumb question but if we sell after 3/31 and before 4/30, should still get the dividend, right?

[ofirm]

In this case I care less about seeing them or knowing them, but their actions regarding the very large cash deductions for the future legal actions tell you
everything you need to know about where they think this will go.

[Phaedrus77]

Isn’t it remarkable that after everything the shareholders went through the last 10 years, management never once faced shareholders and answered their questions? No conference calls, no in-person annual meetings, nothing. Tells you all you need to know about the trustees’ integrity.

[ofirm]

I do not think this is the end of the saga. there is a reason why those trustees think they need > $10M for legal matters and one of their conditions for a
deal was idemnification. would have been funny if it was not sad.

[TruthSheperd]

Finally got the cash this morning officially ending this saga. Looks like RC will be the new red headed stepchild in the portfolio. Probably going to hold a while due to tax ramifications.

[Dr Quest]

" and shouldn't the RC shares be considered long term gains if sold today?"

look at "view lots" on the account with RC stock. It will show holding period Both Schwab and Fidelity show "LONG"

[CitiMan55]

Is the cash payment considered a return of capital? curious about long term gains on the cash payment? and shouldn't the RC shares be considered long term gains if sold today?

[Phaedrus77]

I heard Hollis had an overdraft on his commissary account. That may be part of the hold up.

[Davlund]

The cash distribution was in my Centaraus Financial (Pershing) account when I checked this morning.

[Dr Quest]

last night(Tuesday night) got Schwab and Fidelity cash

[TruthSheperd]

Still waiting for cash in Etrade account. I talked to UDF and they said it will likely take til mid week for some. They were able to verify the amount of distribution that was sent to the agent so it takes time to trickle through the various layers.

[curious analyst]

Shares recorded but no cash value at Fidelity. Has anyone who has shares at Fidelity received cash?

[Enterprising Investor]

Distribution received at Chuck.

[TurboStar97]

But not the $2.3785/share cash distribution? I find it strange that I receive the shares first and the cash distribution later.

[Phaedrus77]

Got my cash in lieu of fractional shares of RC.

[TurboStar97]

Anyone received their cash distribution yet?

[Phaedrus77]

Not guiness and horse races. Cocaine, hookers, Rolls Royces and Iranians.

https://www.udfonline.com/wp-content/uploads/2020/12/CW000004.pdf

[TurboStar97]

Lets assemble a team. I will provide a net gun, some pliers and a car battery. And a Rosie O'donnell costume to create a distraction. We have to move quick though, before they have spent it all on Guinness and horse races.

[Dr Quest]

I reached out to investor relations. They told me, the directors drained the 75 million dollars and left the company and joined Rosie in Ireland. Thy plan to drink Guinness until the money is all gone. They toast every night and sing "So long suckers"

[TurboStar97]

I got RC shares but not the cash.

[Phaedrus77]

I hope you’re right.

[Enterprising Investor]

I think the proceeds from litigation could be larger than the future value of the CVR (without taking into account the negative impact litigation).

Call me an optimist.

[ictjay]

I had 2,000 udfiv shares as of 3 minutes ago. Now my account shows 832 shares of RC at $5.03. And 832 shares of udf contingent value right. $0 value
My ownership was $20 share.

[TruthSheperd]

Still waiting on my cash + shares. My account always seems to get the distribution a day or two late.

[TurboStar97]

So will they get shares into accounts that voted against merger at later date to give us one last F U ?

[Davlund]

I was mistaken, the RC shares are in my account at .416 but no cash from the 2.3785 per share distribution. I'm wondering how it will be distributed since I hold the majority of my shares in an IRA which could be problimatic.

[Dr Quest]

.416 BTW as of now SCHWAB, no shares no $$$ showing........... Fidelity, RC shares no $$$ showing

Today's update https://udfonline.com/ready-capital-corporation-announces-completion-of-merger/

[Dr Quest]

Not here to relitigate the past. Peeps talking about whether to keep RC stock. Just thought it would be interesting to know the performance of RC and then I was curious about NXDT

BTW I changed the % I had posted after I re-looked at the numbers

[Davlund]

The money and shares are in my account. What should the udf to Rc ratio be for our shares!!

[Phaedrus77]

RC offered a fixed number of shares. NXDT (presumably) offered a fixed $ value (the offer stated $72 million or something like that, not 0.5 shares). So the more NXDT dropped, the more shares you would have received.

[Dr Quest]

So, looking back to 1 month performance RC (which includes their div price slashing) is down 32%
As a comparison NXDT(no big bad news) is down 30%

[TruthSheperd]

Nothing yet. It will be nice to finally get rid of the 100% loss reflected in my account currently. The dividends brought my basis to $1.42 so may hold the RC for a while. They are getting a good deal.

[TurboStar97]

"On or about march 13" Well about it is I guess lol. Anyone received their distribution yet?

[freddie me]

cash distribution of $2.3785 https://udfonline.com/united-development-funding-iv-announces-pre-closing-cash-distribution-prior-to-ready-capital-merger-closing/

"This distribution is contemplated by the merger agreement between UDF IV and Ready Capital Corporation (NYSE: RC). Including the approximately $2 million distribution paid by UDF IV to shareholders in December 2024, this distribution brings the total amount distributed to shareholders since the announcement of the merger to the maximum $75 million in distributions permitted by the merger agreement. The merger is expected to close shortly after the payment of the distribution, subject to customary closing conditions."

think my basis was below $2

[MGOFF]

Great News!