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Beautifull day in the SRS nieghborhood today Mikey.....
Dino
More good news HPT down AH....
Hospitality Properties to sell 15 million shares
Hospitality Properties plans to sell 15 million shares to raise money to repay debt
On Wednesday June 17, 2009, 5:54 pm EDT
NEWTON, Mass. (AP) -- Hospitality Properties Trust said Wednesday it plans to sell 15 million common shares to raise funds to repay debt.
The real estate investment trust, which concentrates on hotel properties, said it expects to grant the underwriters a 30-day option to buy up to an additional 2.3 million shares to cover overallotments, if any.
Morgan Stanley, Citi and Wachovia Securities are the bookrunning managers for the offering.
Hospitality Properties shares closed down 14 cents, at $13.30 in Wednesday's regular session. Shares lost another $1, or 7.5 percent, in aftermarket electronic trading after the offering was announced.
Large U.S. corporate bankruptcies accelerate
By Chelsea Emery Chelsea Emery – Tue Jun 16, 2:08 pm ET
NEW YORK (Reuters) – Large U.S. corporate bankruptcies have accelerated in recent weeks as the U.S. economic slowdown claims more victims, according to industry data.
Eight public companies with assets of more than $1 billion have filed for bankruptcy protection in the last four weeks, compared with five multibillion-dollar company bankruptcies in the prior four-week period, according to data compiled by BankruptcyData.com and reviewed by Reuters.
That is the largest number of multibillion-dollar public company bankruptcies in a four-week period since the year began, according to the data.
BankruptcyData.com tracks companies that have some form of publicly traded security such as stocks or bonds.
"Corporate revenue is down in the United States and when topline revenue is down, there's less money to spread through expenses," said Brian Hamilton, co-founder and chief executive officer of financial information company Sageworks Inc.
The last few weeks have brought filings from long-term lodging facility operator Extended Stay Inc, which had assets of $7.13 billion before its bankruptcy, and theme park operator Six Flags Inc (SIXF.OB), which had assets of about $3.03 billion.
The largest Chapter 11 bankruptcy case so far this year is that of General Motors Corp (GMGMQ.PK), which filed for creditor protection on June 1, with assets of more than $91 billion.
The widespread credit crunch and economic slowdown have taken such a toll on corporations and individuals that bankruptcy courts are struggling to manage the load.
Barbara Lynn, chair of the bankruptcy committee of the Judicial Conference of the United States, recommended at a congressional hearing that Congress authorize 13 new permanent bankruptcy judgeships and make 22 temporary bankruptcy judgeships permanent.
"In the 12-month period ending March 31, 2009, there were approximately 1.2 million bankruptcy petitions filed -- nearly double the number of petitions filed in 2006," Lynn said.
MORE TO COME
Hamilton of Sageworks said he expects to see more bankruptcies for companies in the auto or real estate industries.
"We all know the automakers are having great difficulty, but if you're producing parts for the automakers you're also having difficulties," said Hamilton, adding that "anything around real estate is probably going to have difficulty for the latter part of 2009."
June 16 (Bloomberg) -- The Federal Reserve received no requests from investors for loans to buy new commercial mortgage-backed securities under an emergency program aimed at reducing borrowing costs and reviving U.S. economic growth.
"The New York Fed announced the absence of loan requests on its Web site today, the first monthly deadline for investors to apply for loans to buy new CMBS through the Term Asset-Backed Securities Loan Facility, or TALF. No issuers have publicly announced debt that’s eligible for the program."
What does that say about the near-term future of CRE?
Nice call Mikey.....
<< possible 20 break today >>
Still sitting on my hands here, letting her ride. I don't buy many stocks, not my thing. But I can relate to the commercial real estate meltdown.
May tommorow be even brighter...... We all know how fast this one is cable of running in either direction.
Dino
Nice play on your part the other day to wait and buy the dip Mikey....
Dino
I like where I am sitting, enjoying the sea of red in Asia tonight.
Dino
Yesterdays slide took away my edge.
I agree papa, this play makes sense, but will it make us cents/dollars.
Dino
I hold 3,375 shares at 17.60 ave, so I am positioned well for the short term. Looks like an up day tommorrow.
Thanks for shining the light I this one to me Mikey. I never knew SRS existed. I could make quite a hit here if I sit on my hands long enough.
Will sell at least half within a couple days to lock in some profit. But it does move fast in either direction doesn't it?
Dino
Sorry to hear xb....
I added this morning at 18.58.
Dino
Either my post confused you, or you do not understand margin calls.
<< Sounds like you got the margin call...why are you shorting TOVC? >>
I did not get any margin calls, nor am I shorting Torvec.
Dino
HELLO......
The trade was a margin call sell of 20,900 shares executed in a Bank of America brokerage account OF A TORVEC SHAREHOLDER.
BANK OF AMERICA DID NOT BUY "THESE SHARES." THE TRADE WAS EXECUTED IN A TORVEC SHAREHOLDERS BANK OF AMERICA BROKERAGE ACCOUNT.
At least the mms made money re-selling those shares at higher prices.
Dino
You are right on the button Blue....
I am familiar with the trade (20,900 shares to be exact). I do not care to get into much of a discussion about it, other than to confirm that it was not intended to go off, and it WAS part of a margin call.
The trader was notified they had until 3 p.m. Thursday to settle a $60,000 margin call from a non Torvec stock purchase, but Bank of America traded their Torvec shares as well as other shares in the account 2 days early.
Nice to see that there were traders ready to take those shares.
Dino
Someone dumped 20,000 shares on a margin call just after 2 p.m.
What would happen to the share price, if someone dumped 20,000 shares was a topic of discussion here sometime ago. Looks as if the price faired fairly well, closing down 2 cents.
Dino
I live in Buffalo N.Y
Monday, June 8, 2009
DDR Sells Malls at 30% Discount... To 2004 Price
Posted by Tyler Durden at 1:20 PM
Finally a market test valuation of Commercial Real Estate, which is not just hype and Merrill Lynch speculations. The Buffalo News reports that REIT Developers Diversified Realty is selling back 11 upstate New York shopping malls to the entity it originally purchased them from, Benderson Development Co., at a 30% discount to their 2004 purchase price.
In 2004 DDR acquired 110 properties from Benderson for $2.3 billion, an average price of $21 million, and is now selling back 11 of these for a total price of $160-$175 million, of roughly a $15 million average price, and a 30% discount. Not bad for Benderson which buying back what it sold 5 years ago at a 70 cents on the dollar.
And for all intents and purposes, this transaction was very opportunistic for DDR:
“It’s good that the ownership is going in the direction that it is,” said Michael C. Clark, director of retail tenant services at CB Richard Ellis in Buffalo. “There’s going to be a lot of markets in other parts of the country where they have portfolios for sale by different REITs and they don’t have someone like Benderson to step up.
“We’re pretty fortunate in terms of the market, in regard to that. How much better can you get than the folks that developed them and are intimately familiar with them and live and breathe here? They certainly know what they’re doing,” Clark said.
As Retail Traffic points out, this is very surprising as current estimates have been that retail properties would post at most a 40% decline from peak values achieved in 2007. A 30% discount from a 2004 price implies a significantly higher discount from the peak. RT calculated that the final closing discount from the peak is roughly 50%. As David Bodamer at RT points out:
There are a lot of things we don’t know about these assets. Are they healthy assets or do they need work? What do the current tenant rosters look like? Are the rents at market rates or lower? When do the leases come up for renewal? Did Developers Diversified sell these assets at a deeper discount than is truly reflective of market conditions out of a need to raise cash? Without this information it is hard to draw a full conclusion on what it means for the market. But the fact remains that this represents a massive drop in values from just more than two years ago. And the drop in value is larger than even the most pessimistic estimates have been for the peak-to-trough change in prices for retail real estate.
Notable is that DDR is raising cash in a non-equity offering form. Maybe Merrill has gotten to the saturation point where there is just not enough reverse inquiry into the phenomenally overpriced REITs.
Also, thanks to this market test, one will be able to recalculate what fair Debt-to-Market Value of Assets ratio is for the majority of mall REITs. The result will likely be an dramatic rise from previously consensual ratios, presenting yet another data point indicative of the REITs bloated overvaluations due exclusively to short squeezes.
Sunstone prepared to turn over W San Diego to bank
Sunstone says will default on hefty W San Diego mortgage payment, turn over hotel to lenders
SAN CLEMENTE, Calif. (AP) -- Sunstone Hotel Investors Inc. said Sunday it will default on the June mortgage payment for its swanky W Hotel San Diego property and turn over the 258-room downtown hotel to lenders, after failing to lower interest payments.
The real estate investment trust said Sunday its San Diego hotel has been hurt by "significant and continuing deterioration in demand for luxury lodging" as well as the opening of luxury boutique hotels, two additional Starwood-branded hotels and a 1,190-room convention hotel nearby.
Sunstone purchased the W San Diego in June 2006 for $96 million from developers including Starwood Hotels, Gatehouse Capital and Multi-Employer Development Partners. The hotel carries a $65 million, fixed-rate commercial mortgage-backed securities loan with a 6.14 percent interest rate, which comes due Jan. 1, 2018. The mortgage principal translates to more than $250,000 in debt per room.
San Clemente, Calif.-based Sunstone said its loan special servicer has declined the company's attempts at renegotiating interest payments lower. Since Sunstone feels the W San Diego is now worth much less than what it owes, the company would rather turn it over to the bank than have hefty interest payments continue to drain cash from its balance sheet.
"While the company maintains more than adequate liquidity to support or repay this mortgage, we believe a conveyance of this hotel in settlement of the debt would be in the best interest of our stockholders," Chief Financial Officer Ken Cruse, said in a statement.
Cruse said the move would deleverage Sunstone and add to its funds from operations -- an industry profit measure -- and credit profile.
Sunstone Hotel warned it could pursue similar options with a limited number of its other mortgaged hotels, but declined to identify any properties that might be in danger of default. Last month, Sunstone amended terms on some of its senior notes so that any default on less than $300 million worth of debt won't trigger noteholders to call in payment of their bonds. That would make it easier for the company to potentially shed other troubled hotels in the same fashion.
As of March 31, the company owned 43 hotels in the upper-upscale segment operated under brands including Marriott, Hilton, Hyatt, Fairmont and Starwood. It has been restructuring its credit facility and soliciting bids for new mortgage debt on several of its hotels.
Hotel real estate investment trusts have been hit hard by the credit crunch and by job losses which have curbed business and vacation travel. Analysts expect hotel margins will decline this year, given that hotels aren't cutting major services as they struggle to attract travelers.
Sunstone Hotel said that across its portfolio, revenue per available room -- an industry performance measure known as RevPAR -- slid 24.5 percent to $98.73 in the quarter ended May 31. That's nearly double the 13 percent drop it saw in the first quarter.
RevPAR for the month of May fell 24.4 percent and year-to-date is down 19.6 percent to $97.53.
"We continue to run our business with the expectation that 2009 will be one of the deepest cyclical troughs the lodging industry has endured," Arthur Buser, president and chief executive, said in a statement. "While we are generally pleased with our results thus far this year, as our recent revenue declines are largely the result of lower rate, rather than reduced occupancy, we expect margin control will become increasingly difficult."
Sunstone said the company has asked hotel operators to develop "zero-based" budgets and adjust staffing models for minimum business levels. The REIT plans to hold a conference call at 5 p.m. EDT Monday to update stockholders on recent business performance and transactions.
Boston Properties to sell more than 12 mln shrs
Thu Jun 4, 2009 6:18pm
By Ilaina Jonas
NEW YORK, June 4 (Reuters) - Office landlord Boston Properties Inc (BXP.N) said on Thursday it would sell more than 12 million shares, becoming the most recent real estate investment trust to tap the public equity market to raise cash.
The company, which owns top-quality office buildings in U.S. cities including New York, Boston and San Francisco, said it would sell 10.5 million shares and grant underwriters an additional 1,575,000 shares to cover overallotments.
Since the credit crisis struck and dried up sources of debt, the public real-estate companies have been able to turn to equity markets to raise cash to pay off their debt and strengthen their balance sheets.
So far this year, 45 publicly traded REITs have raised more than $14 billion from sales of new shares, with about 40 generating $11.5 billion since March. In most cases, the initial demand for shares has been so strong issuers have increased the number of shares offered.
Boston Properties said it intends to use the net proceeds from the offering for general business purposes, which may include investment opportunities and debt reduction.
Following the news of the offerings, shares of Boston Properties on Thursday fell 3.8 percent to $51.01 in after-hours activity, from their close of $53.01 on the New York Stock Exchange.
Mikey
Any thoughts on ANPI at 1.55?
Dino
Sorry I confused you Dread with that "single sentence." Alot was read into my simple post.
While GM is in a state of "limbo" to file OR not to file for BK, I was only posting my thought maybe some GM purchasing decisions are being put on hold during this period.
To sum it up, the jist of my post was I would like to see a final decision made on General Motors soon.
Dino
I will be glad to see this decided one way or the other. If GM is interested in Torvec products, and I believe they are, we can start THE PROCESS to proceed.
Report: GM bankruptcy expected as early as next week
St. Louis Business Journal
General Motors Corp., which makes Chevrolet Express and GMC Savana vans in Wentzville, Mo., is expected to file bankruptcy late next week and could get up to $30 billion in additional federal bailout funds, according to a Friday report in the Washington Post.
The newspaper quoted sources familiar with the discussions between GM (NYSE: GM) and President Barack Obama’s administration, and said the government is expected to steer the automaker toward filing either late next week, or in the first week of June.
The investment of up to $30 billion is said to be something that could change, but at that amount it would bring the federal government's investment in GM to nearly $45 billion. The government would have a 50 percent stake in a new, leaner, more competitive GM.
A deal to take GM into bankruptcy comes as the newspaper also quoted sources in the industry as saying Chrysler LLC could come out of bankruptcy as early as next week.
GM reached a deal with the United Auto Workers on Thursday for concessions to its labor contract as part of its plan to seek deals with its union and bondholders. The talks with bondholders are believed to be continuing.
Both GM and Chrysler have accepted billions in federal bailout funds and have announced a combined nearly 1,900 dealerships would be cut as they trim their dealer franchise numbers and make cuts to their work forces.
Thank you for your reply to my post dabreeze....Most often I don't have the time to respond to your negative outlooks on Torvec, but here is A response for you tonight.
Current News
April 29, 2009
Dear shareholders,
As we discussed in the March 9th Update, Torvec and its associates in Washington have started to gather momentum, having positive meetings with staffers from several congressional representatives who intend to lend their support on our behalf, as well as a preliminary meeting with the DOE. One of our associates in Washington spent a day last week at the White House on our behalf sharing the Torvec story with White House staff. We are currently making preparation for another visit to the nation’s capital where it is our intent to speak with various program managers from various government agencies who have been allocated MONIES TO PROGRAMS FOR WHICH WE QUALIFY.
As always your friend,
Dino
2009 Plan of Operation
The company's plan of operation during the year ending December 31, 2009 is as follows:
1) to continue working with the U.S. Air Force to create an Advanced Combat Firefighting Vehicle capable of unprecedented speed, maneuverability with diverse applications for use in the most extreme and rugged terrain. The company has delivered an FTV� to the Air Force in December 2008 to maximize the FTVs combat firefighting capabilities, including its robotic and autonomous potential, at Tyndale Air Force Base in Florida;
2) to build a "second generation" FTV based upon the Air Force's recommendations for delivery to the Air Force for integration in its Advanced Combat FirefightingVehicle Program;
3) to explore interest in the FTV among other branches of the U.S. military, the Department of Homeland Security, FEMA, the U.S. Forestry Service, as well as state and municipal governmental units, in acquiring design-specific FTVs for boarder patrol, off-highway emergencies, as an environmentally-friendly vehicle for federal and state conservation and drug-enforcement efforts and, as a fast, highly maneuverable vehicle for combat and non-combat uses;
4) to explore the interest of a foreign truck manufacturer in licensing the rights to produce and market the FTV worldwide;
5) to build an IsoTorque� differential for evaluation by a major American automotive manufacturer for integration in its front-wheel drive vehicles. Previously, in 2008, the manufacturer had evaluated the IsoTorque differential in its rear-wheel drive vehicles;
6) to redesign the axle used by a major international truck manufacturer to enable the manufacturer to integrate the company's IsoTorque technology in its fleet of heavy-duty trucks.
During the first quarter of 2009, the company shipped seven design-specific infinitely variable transmissions to the National Aeronautics and Space Administration for use in that agency's lunar rover in connection with NASA's program titled "America's return to the moon." The company anticipates that it will continue to work in 2009 with NASA as an "official" drive-line consultant to the lunar rover project.
Information regarding the company and all of its automotive inventions, including regular updates on technological and business developments, can be found on the company's website, www.torvec.com.
xbigshot, you were right about arm at 51 cents.
Thanks for the advice.
Dino
I guess it was safe to take a position here lol....
Better days are yet to come.
Dino
3 Times the average volume at mid-day....
Someone obviously was stirred by the possibility that millions of dollars of operating capital appears to be coming Torvec's way.
As we discussed in the March 9th Update, Torvec and its associates in Washington have started to gather momentum, having positive meetings with staffers from several congressional representatives who intend to lend their support on our behalf, as well as a preliminary meeting with the DOE. One of our associates in Washington spent a day last week at the White House on our behalf sharing the Torvec story with White House staff. We are currently making preparation for another visit to the nation’s capital where it is our intent to speak with various program managers from various government agencies who have been allocated monies to programs for which we qualify.
As always your friend,
Dino
If I were not a "true believer"....
Personally speaking, I would have SOLD my shares.
Thanks for your reply to my post. I am also one of many shareholders who are frustrated with the process of reaching a fair commercializing event for the companys shareholders.
Dino
Chrysler Lenders and Treasury Reach a Deal- AP
A person familiar with the talks says the Treasury Department has reached a tentative agreement with four of Chrysler's major debtholders as the automaker races to stave off bankruptcy. Under the agreement, the four banks will forgo claims to their portion of Chrysler's $6.9 billion debt in exchange for $2 billion in cash when the deal closes. The person spoke on condition of anonymity because the agreement has not been formally announced.
NEWS FLASH We are ALL just interested in a return on our investment, yes even those of us who support Torvec management.
Criticism of management is fine, PERSONAL attacks of management and shareholders is not.
2009 IS OUR YEAR. The red badge of courage for being a ten yr. Torvec investor, as opposed to other TORVEC investors is getting old. End of message
Dino
I am missing the point of your post....
You have asked me to ingore you... yet post addressing me.
NEWS FLASH We are ALL "just interested in a return on investment" yes even those of us who support Torvec management.
Criticism of management is fine with me, PERSONAL attacks of management and shareholders is not.
2009 IS OUR YEAR. The red badge of courage for being a ten year investor, as opposed to other investors is getting old. End of message
Dino
Intentionally spread message board rumor. Torvec has NO intention of going private. They formed and are a publicly traded company for a good reason.
Unfortunately without facts to support their comment and to try and create panic, a person could say one of many companys is going to go private in this current economic environment.
Dino
Enjoy your weekend also Tor....
Life is Good..........
Dino
I guess in turn I wish I had $10 for every time I heard someone grumbling/blaming management about an investment THEY made but continued to hold the investment.
Dino
I am enthusiastic and confident with my investment in Torvec Leitrim, but if you find someone who will give you $10 everytime you hear "This is our year" good for you.
Dino
Once the company has more cash to work with, I would really like to see them stifle the raging bull tactics of scaring off investors by a few individuals.
Sure its been frustrating waiting, but that is the nature of this type of investment.
Dino
Here is a post on yahoo from POSTER dabreeze
Is Dino on the other side of every sell order? 21-Apr-09 12:00 pm Who is keeping this thing above a few pennies? The writing is on the wall...liquidity issues will FORCE THIS COMPANY INTO BANKRUCTCY. People don't want to sell because they are so far underwater but IF YOU DON'T SELL NOW YOU WILL BE LEFT WITH NOTHING! Dino, of course, will be left with a pile of worthless stock certificates
This is our year longs.
Dino
"going private would destroy the very financial
foundation upon which Torvec was built and has operated since 1999—that of being
a public company with access to the public markets which creates an avenue by which
our shareholders have a public exit to relieve themselves of Torvec shares if
they so wish."
Nice to see JG address the going private rumor, one of many intentionally placed on Yahoo with the intent to bring the stockholder shareprice down.
Dino
Torvec/supportive shareholders of the company are CONSTANTLY harrassed on the Yahoo Torvec message board. Freedom of speak is one thing, but these posters go too far.
When Torvec begins commercializing, and IMO they most certainly will, I would like to see Torvec start holding these people accountable.
Here is an email response poster robber received and posted today from Jim Gleasman.
Here are some excerpts from an email I received from Jim today:
"please be advised that Footnote 14 in our recent 10-K refers to
payments made to our engineer consultants and has nothing to do with CXO."
"this is yet another of a long, long string of misinformation about
Torvec and our people, including me specifically, that daily makes
its way to these chat rooms. Another illustration----that we are planning to
“go private.” Talk about absurdity---going private would destroy the very financial
foundation upon which Torvec was built and has operated since 1999—that of being
a public company with access to the public markets which creates an avenue by which
our shareholders have a public exit to relieve themselves of Torvec shares if
they so wish."
GM seeks provision for its suppliers
By Julie MacIntosh in New York
Published: April 16 2009 23:32 | Last updated: April 16 2009 23:32
General Motors is prepared to argue that hundreds of its suppliers are “critical vendors” who require timely payments if it seeks bankruptcy protection, setting the stage for what would be the most sweeping attempt ever to win special treatment for such contractors, people close to the matter say.
Companies often request special treatment for a limited number of suppliers as part of bankruptcy petitions.
EDITOR’S CHOICE
In depth: Detroit in distress - Feb-16Saab opens its doors to potential buyers - Apr-16Car parts groups prepare to request more aid - Apr-14Interactive: Global automotive bail-outs - Feb-18GM in talks to sell Saturn brand - Apr-16Bankruptcy experts say GM would stand a good chance of winning protection for more suppliers than is usual because of the large number that provide “just-in-time” car parts to the company.
“On its face, the justification for critical trade appears very strong here, as strong if not stronger than in most other cases,” said James Sprayregen, a bankruptcy partner at Kirkland & Ellis. “It’s hard to see how it’s going to be in anybody’s interest to shut the supply chain down.”
In recent months, GM has raised questions about whether a bankruptcy filing would create more problems than it would solve.
It has argued that a slowdown in payments to its vendors could prompt them to withhold supplies or go bankrupt themselves, creating turmoil across the US industrial sector.
By seeking permission to pay hundreds of suppliers, GM could mitigate damage to the car parts industry.
People close to GM say the company would make the request regardless of where it filed its bankruptcy petition. Company insiders say the most likely venues would be Detroit, New York or Delaware.
“No matter what court they go into, they’ll get authority to pay whatever suppliers they need,” said one person close to GM. “In a GM bankruptcy, there won’t be very much fallout for suppliers except perhaps for suppliers of Saturn and Hummer.”
Those two brands will be shut if they are not sold. More suppliers could drop outside the key vendor pool if GM is pressed to cull its portfolio further, targeting brands such as Pontiac.
GM would have to demonstrate in court that its business would be better off, and could retain more value if it pays key bills.
A judge could also force GM to prove that individual suppliers would stop operating or shipping goods if they were not paid, rather than letting GM use the money as it sees fit.
The critical vendor legal doctrine can be “subject to abuse and unfairness”, one attorney said. Roughly two-thirds of GM’s suppliers also sell parts to Ford or Chrysler, and some may be able to absorb late or reduced payments.
“It’s a game of chicken,” one attorney said. “How do you figure out which suppliers really will stop supplying tomorrow and which won’t?”
Thanks for the reply.......
Long story why I bought 25,000 shares of ARM. I have a cost ave. of $1.40. Buying as high as 1.96 and as low as .56. I am no stock expert, nor will I ever trade stocks on a regular basis, as I am smart enough to know what I don't know.
I made mistakes buying in. Sharp guys like yourself who wanted to buy 25,000 shares would NEVER have done it the way I did. So I want to be a little smarter on the way out.
I need to be out by May 1 and do not mind taking a small lost. Maybe I should have left my sell order of 20% at 1.18 out there Thursday.
Interesting to see what next weeks trading brings for ARM which is up 51% in the last two trading days. .79-$1.20
From a novice point of view I should expect some retracement here and hold for another pop before the end of the month.
Hope you still have some DAN.
Dino
ARM was the auto supplier darling today.....
Closed at high of the day $1.20 up 30 cents 33%.
Now I wish I had the knowledge/experience on how to smartly start taking some off the table.
Dino