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Well,I did not get my entry on ggp.Didn't continue yesterdays pullback.Closed up a dime.Lots of players have a lot to lose if this this does not work out.Ackman has 25%~Share Statistics
Average Volume (3 month)3: 8,118,010
Average Volume (10 day)3: 14,784,600
Shares Outstanding5: 313.57M
Float: 298.52M
% Held by Insiders1: 23.91%
% Held by Institutions1: 47.10%
Shares Short (as of 10-Mar-09)3: 39.42M
Short Ratio (as of 10-Mar-09)3: 5.7
Short % of Float (as of 10-Mar-09)3: 12.70%
Shares Short (prior month)3: 34.58M
Thanks Pinkie,Ackman has increased his stake in ggp from 7.5 in Nov to 25% now on ggp.Been playing this one.Bankruptcy best option for General Growth: Ackman
April 02, 2009
(Reuters) — Hedge fund manager William Ackman, who controls 25 percent of General Growth Properties Inc. shares, said bankruptcy was the best option for the second largest U.S. mall operator, which is facing billions in loans it cannot refinance.
"Bankruptcy is not just designed for companies that are insolvent," Ackman told a packed room of real estate investors, owners, analysts and bankers attending the New York University Schack Institute of Real Estate 14th Annual REIT Symposium.
"Bankruptcy is also designed for companies that are solvent, but have liquidity problems that are due to events outside of their control," said Ackman, head of New York-based Pershing Square Capital Management LP.
General Growth, the Chicago-based real estate investment trust (REIT) faces more than $27 billion in debt that comes due over the next several years and has already defaulted on many mortgage loans and corporate bonds.
A spokesman for the mall owner and operator said it was continuing discussions with "our lenders as it pertains to our current debt situation."
It has repeatedly said that, if it cannot obtain refinancing or loan extensions, it may seek Chapter 11 bankruptcy protection. At the same time, it has been trying to assuage mortgage and bond holders, fighting not to file.
The company owns more than 200 U.S malls in 44 states. Among its holdings are some of the most profitable malls in the country.
"I think it's a great company," Ackman said. "It's got phenomenal assets."
Ackman began buying up General Growth shares after the company's market capitalization fell to $104 million from $9.4 billion in the 60 days after Lehman Brothers Holdings Inc. filed for bankruptcy and the credit markets shut down.
Ackman said that, without the debt problems, it could easily retain its value through the economic downturn because of the high-quality malls its has in its portfolio.
"It's one of the most interesting investment opportunities I've seen in my career," he said.
Ackman, is pursuing another challenge on the real estate front. He controls 7.8 percent of Target Corp. and is pushing for five seats on its board. Ackman wants the retailer to sell its credit card operations and spin off the land under its stores as a REIT to boost its stock price.
A General Growth bankruptcy could be a boon for shareholders, he said.
He compared its plight to that of Alexander's Inc., the failed department store. Real estate titan Steve Roth, chairman of Vornado Realty Trust, bought the shares and put the company into bankruptcy in 1992.
He closed the department store and developed the property. The stock soared past $450 a share and closed on Thursday at $169.24. General Growth shares closed at 68 cents.
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general growth - pershing square - real estate - ackman reports stake - morgan stanley - square feet"I've learned that, when a solvent company files for bankruptcy and you have a lead equity holder, you can marshal it thorough the bankruptcy process," Ackman said.
"If you've got a situation where you have a small equity cap and you can sell 90 percent of your stock and de-equitize yourself or you can file and retain equity value for shareholders, you should look at that very, very seriously."
Real Estate mogul Sam Zell, who sold Equity Office, the giant U.S. office owner, at what is now seen as the top of the market, said General Growth would likely file for bankruptcy protection.
"I do not believe GGP will be liquidated," Zell said, speaking at the same conference. "I expect the company to file bankruptcy. It will do a prepackaged. It will be reorganized and it will be taken public."
Jim,Have a good site with accurate insider buying?Whistles told me to check edgar.Looking to see the insider buying in ggp.Thought we would have a little more follow through selling from yesterday.Didn't happen and was up a dime.Thanks Bob :))
Do you have a link to the short interest changes?Lots of $$$ being made on the Nasdaq/nyse stocks the last month.I do think shorts are already covering.Lots of doubles/triples out their.Thanks Bob :))
In my first talks with Craig after the LOI pr came out.I figured .10 range give or take a few cents based on the revenue flows we know about.He told me north of .10.So you are correct if more deals are coming.I still want signed contracts.If Jared thinks .10 is to low then I would think the current rev estimates are pretty good.Either way.0185 is undervalued.Bob :))
Hey Dawg,If everything is true and investors/insiders believe the WHOLE situation we should now be trading.05/.07 with todays release.Next week will tell the story.Bob :))
Looks Good Million.At least we now know the line in the sand is.10.
Agree Jim,We should move higher if investors believe the.10 offer.Most buyouts on the big boards result in the stock trading a few bucks below the buyout price.If a counter offer was in the making it would trade above or near the buyout price on the table.We shall see Monday.With that being said Jared thinks we are worth more than .10.In the real world based on the offer and Jared stating we are worth more than .10 the stock should trade a few pennies higher.This is the pinks so who knows.Bob :))
Good entry.Watching for some volume.
Looks like it wants to hold that .38/.39 area.At least they bought themselves some time.
EBHI .40-.03.Not much effect from this news:Eddie Bauer says new terms give retailer "breathing room"
By Amy Martinez
Seattle Times business reporter
Bellevue-based retailer Eddie Bauer Holdings said today that it has reached an agreement with its lenders to change the financial covenants for a $225 million term loan.
Chief Executive Neil Fiske told analysts and investors in a conference call that the changes provide short-term financial relief, though at a price "above what would have been considered market rate a year ago."
The new terms include a substantial increase in interest rates and warrants for Eddie Bauer's common stock. In return, the outdoor-apparel company gets "breathing room to weather the recession and hopefully come out in 2010 ready for growth as the economy turns," Fiske said.
Eddie Bauer disclosed in March that it was trying to change its loan covenants to avoid a "going concern" opinion from its accountants — a reference to its ability to continue to operate indefinitely. The company said it was at risk of violating a consolidated secured leverage ratio for the $225 million term loan, on which $193 million is outstanding.
Fiske said the new agreed-upon ratios "will make it much easier to stay compliant," despite a difficult economic environment. He noted that the company subsequently received a "clean opinion" from its auditors.
"There is no sign yet that the economy has hit bottom and is beginning to turn," he said in the conference call. "The first quarter of this year will be the most negative, with revenues declining about 15 percent versus last year.
"We anticipate improvement in each of the successive quarters," he said, adding that sales at stores open at least a year probably will remain down from 2008 levels until late this year or early next year.
As of March 27, Eddie Bauer had $268 million in outstanding debt, including the $193 million on its term loan and $75 million in convertible notes.
Fiske said the company will contact its convertible-note holders over the next few weeks to discuss the possible terms for converting their $75 million to common stock. If after 90 days Eddie Bauer does not convert the notes to stock, its lenders are entitled to additional fees and warrants under the new terms, Fiske said.
Thanks,Not finding my entries so far today today.Bob :))
Hey Buckey,Sounds like we need a system somewhere in the middle of U.S. & Canada.
Yep,Lots of American retirees and 50+ leaving the US.It is too expensive to live in the traditional places like Florida.We love our Penguins.I think we have the highest attendance in the league.night Bob :))
Yes they are expensive.The little research I did on the company is not good also.Night Bob :))
Did you ever see these guys as far as indoor growing?They actually trade also.Gardening will be big this year with the economic situation.Burpee is private.Someone is going to benefit big time this year.http://www.aerogrow.com/
Yep,That is exactly where I load again.Maybe a little higher because I will take on the few cent risk.News on the refinancing will be coming soon and or new board members.Bob :))
One thing we got going for us.Everyone loves the dogs.Especially if we win.lol Bob :))
Agree,Easier to buy them.Need some weather.My neighbor who is in his 80's just put his onions in.He has a little greenhouse.Love the oldtimers.Bob :))
Hey,We have the Wilkes Barre/Scranton Penguins.Loved and sold out most of the time.I may move up to Canada on Jim's Island if our government doesn't start to get it right.Whole American communities forming in Panama city~Honduras~Ecuador etc.Bob :))
Ha,We bite but we own the stros.Have to check the schedule.We may need to make a wager.lol Bob :))
Yea,Bored the other day in my travels and stopped at wally world.Picked up the seed along with green beans and sugar snap peas.I buy tomato~lettuce and peppers already grown.I am not that good to start from seed.The grass is getting green.Can you tell I am desperate for summer.lol Bob :))
Gonna try this year.Everyone I know is laughing at me.I picked up two of the as seen on tv topsy turvy upside down tomato plant holders.Everyone wants pictures.I love the crazy crap companies come out with.lol Bob :))
Thank God.Everyone is starting to get a little skitzooo from the drawn out winter.Thinking of planting a bunch of sunflowers this year.Do they really grow big from seed?Thanks
My Japaneese Cherry trees are finally getting buds here in the NE.Thank god.Signs winter is finally ending.Bob
You Canadiens~
Jim,Whats the unsecured credit situation in the great white north aka cards and credit lines?Since obama said he was pushing 200 billion + for small biz it has gotten worse for many biz owners I know.That money is not available and credit lines/unsecured credit has been frozen or open credit dropped.Everyone I know including myself have good credit.It has been a across the board cut.I think obama has to forget about saving the car companies and get more help to the middle class and small biz directly.Bob
or two~S.Korea and the potential new customer.eom
Skid,I am well aware of all the reits potential based on 2 year highs.If someone is not a trader and buys correctly this is the time.I trade them because I am not around every day and the bk risk is still their.This is a historic time for lows in stocks in all sectors.I was in the markets and a broker in the 80's dealing with Black friday.That was the last time in my life stocks were this low.I would tell anyone to start looking now.Bob :)))
Long weekend coming for the markets.I will be at my location tomorrow where my big ggp player is.I will let the board know his thoughts.I already know he is buying without even talking to him.He believes the problems with ggp will be resolved and big players won't let them go down.Just as I believe pei gets the refinancing they need.Playin the game.
Most Bogus US Government report I have ever seen.I know many people in biz and with personal unsecured credit.The companies are freezing lines and dropping open credit to buy.It declined because credit is being shut down.Not because Americans are getting smart.Unbelievable~
The rate of borrowing by Americans declined for the first time in 10 years during August, a sign of building stress on household finances.
Consumer credit outstanding decreased $7.9 billion in August to $2.577 trillion, according to a Tuesday report from the U.S. Federal Reserve. That follows a $5.2 billion consumer credit increase in July, which is an upward revision from a previously estimated $4.6 billion increase.
The August credit fell far short of Wall Street predictions, which had forecast a $6.0 billion increase in credit for the month. The 3.7% drop was the first decline since January 1998, when credit fell 4.3%, or $4.7 billion.
The slowdown suggests financial stress on U.S. households. Borrowing tends to slow with softer spending in a weakened economy. The consumer credit data exclude home mortgages and other real estate-secured loans. These tend to be highly volatile from month to month and are frequently revised.
Revolving debt, which mostly reflects credit-card financing, fell in August at a seasonally adjusted annual rate of 0.8%, or $612 million, to $969 billion. Credit in July rose 5.0%, or $4.0 billion, revised from an originally reported increase of $3.9 billion. Some households have relied on credit cards to fight off higher food and oil prices, declining home values, and tightened credit conditions.
Nonrevolving credit decreased in August at a seasonally adjusted annual rate of 5.4%, or $7.3 billion, to $1.608 trillion. Credit in July climbed 0.9%, or $1.2 billion, revised from an originally reported $678 million advance. Nonrevolving credit is mainly automobile loans. –Jeff Bater
Just checked the chart on ggp.RSI is heading down.Would love to see it bounce off the 50.That would probably put the price right where you mentioned .65-.70.That would be a ideal entry.Watch it close.
You are correct in that area.Lets see if we get their.Have a few on speed dial that want back in after they cashed in on the first run.Lets watch.No news is good.Bob :))
Oh yea,Besides the government corruption.The drug trade and murders~crime in general is rampant.ThankGod the mall is right off the highway and away from the crime.Sad when small towns turn bad.Bob
Most Bogus US Government report I have ever seen.I know many people in biz and with personal unsecured credit.The companies are freezing lines and dropping open credit to buy.Unbelievable~
The rate of borrowing by Americans declined for the first time in 10 years during August, a sign of building stress on household finances.
Consumer credit outstanding decreased $7.9 billion in August to $2.577 trillion, according to a Tuesday report from the U.S. Federal Reserve. That follows a $5.2 billion consumer credit increase in July, which is an upward revision from a previously estimated $4.6 billion increase.
The August credit fell far short of Wall Street predictions, which had forecast a $6.0 billion increase in credit for the month. The 3.7% drop was the first decline since January 1998, when credit fell 4.3%, or $4.7 billion.
The slowdown suggests financial stress on U.S. households. Borrowing tends to slow with softer spending in a weakened economy. The consumer credit data exclude home mortgages and other real estate-secured loans. These tend to be highly volatile from month to month and are frequently revised.
Revolving debt, which mostly reflects credit-card financing, fell in August at a seasonally adjusted annual rate of 0.8%, or $612 million, to $969 billion. Credit in July rose 5.0%, or $4.0 billion, revised from an originally reported increase of $3.9 billion. Some households have relied on credit cards to fight off higher food and oil prices, declining home values, and tightened credit conditions.
Nonrevolving credit decreased in August at a seasonally adjusted annual rate of 5.4%, or $7.3 billion, to $1.608 trillion. Credit in July climbed 0.9%, or $1.2 billion, revised from an originally reported $678 million advance. Nonrevolving credit is mainly automobile loans. –Jeff Bater
I was going to mention the stros to you.As you know my pirats are in the same division.We beat you all over the place last year.Winning 5-1 over the cards tonight.I just want a winning record.16 years in a row of sub 500.Oh the days of Clemente~Stargell and even Bonds.Bob :))
Houston seems to have a lot of good wholesalers.Bob :))
Hey Jim,Weather still bites.It you want good reads.Do a search on the two counties I border.Luzerne and Lackawanna county, We have more political corruption than most places in the U.S.I remember seeing a poll out of Seattle with the most corrupt places in the United States.We were their.Many are good customers of mine.lol~http://www.thetimes-tribune.com/articles/2009/03/27/news/sc_times_trib.20090327.a.pg1.tt27judges2020_s1.2403303_top3.txt
Who knows,But as a publicly traded company he does owe the shareholders a update on S.Korea and signed contracts.I have noticed the quiet from mark also in regards to important info.We have many inexperienced investors that bought stock because of the wowgreen connection that believe in the whole scenario without understanding the pink games.Bob :))