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Typical back and forth. Not a lawyer so I'm not great at picking a winner but I don't see much. Both sides filed on 6/25 and the one lawyer for one filed a version in support of the other lawyer on 6/26. Rereading the docket record the part I do find surprising is that he asked for the initial filings on 6/25 but never asked for rebutal with a due date which is common in my experience.
Feels like a stalling move while things are being negotiated behind the scenes. If we are not done by Sep 4 that status report will be very interesting.
Typical back and forth. Not a lawyer so I'm not great at picking a winner but I don't see much. Both sides filed on 6/25 and the one lawyer for one filed a version in support of the other lawyer on 6/26. Rereading the docket record the part I do find surprising is that he asked for the initial filings on 6/25 but never asked for rebutal with a due date which is common in my experience.
Feels like a stalling move while things are being negotiated behind the scenes. If we are not done by Sep 4 that status report will be very interesting.
Been out of the country for a week with no internet or phone. Life was phenomenal. The only updates (and why you have not seen anything now at the end of July) is that in the 2 weeks following the judges request the 2 groups (HMA and the lawyers for the 2 cases) have filed short briefs explaining why/why not the judge should allow the case to be moved.
No decision to allow or not has been made by the judge. The only order by the judge has been to require a status update by Sept 4th.
Here was the actual order.
There is nothing on PACER but I doubt PACER would show anything due to the size of these cases. I would expect a press release and a big deal.
The timing would be right for stuff to start leaking. This settlement is with multiple states and multiple Federal offices, tons of legal teams, etc.
I have seen weird price action before on these sorts of cases and they usually turn up true in hindsight. I won't trade on it but I can see that others have.
Reread Kev's statement...
Interesting point on the tax implications. I had never heard that before. I always wondered why some would stay in when I would sell at 98% of full value for an additional 3 or 6 months.
Any articles or discussions you could point me to on the tax implications of CVRs. A very cursory glance on google turns up little.
yeah. The end is near.
He needs help.
Once you have a PACER account I just search by case 1:14-mc-00339. Then within docket or whatever it is called and it should give you the detail.
It costs $.10/page that you read or download.
There was a filing today but of no use or value.
The legal team for the qui tam was supposed to file their fees for the part of their agreement that was settled in December and has been thru 2 extensions. They are asking for another 90 day extension as they want resolution on if the 2 cases are going to be allowed to separate and/or a final settlement.
It appears status quo. Hopefully a settlement will be done by Sep.
I was briefly a holder in GCVRZ but bailed early when I did the math and saw that it was never going to hit the payouts.
I will not confirm an agreement like that. The last time I did was waiting on DIMEQ. I was grossly overweight the stock waiting for a judge's ruling.
I had read everything in the case and associted cases and thought we definitely would win as JPM was playing both sides in the 2 cases. That said I couldn't sleep at night and woke up the next day committed to selling half my stake. Decision was expected to be in 3-4 days so I was ok. Logged in at noon to my brokerage account right after the judge released it and the fall was in effect. I was able to dump half at a 50% loss.
Never again will I count my chickens before they hatch. Talk to me if we are successful.
(I will never have faith in the legal system after that either). Simply reading the legal contracts should have been enough.
there are no new filings on the docket.
completely agree on Elon. People say he's rich but if you read the 10Qs. Lots of his stock compensation has been used as collateral for loans from Goldman.
I first went short Telsa when it was $32/share. After I got killed on that I've been hesistant and I agree with you. I'll play via puts but I'm not sure how I want to structure it.
What is surprising to me is that we are down $50/share in the last 5 days and nobobdy is talking about closing their short/put position.
Are you looking for a TSLA Bankruptcy or just a general downtrend once they get financing?
I generally run 80% of my investment in an index and then I have 20% that I play with. I've been barred from my wife with regards to TSLA after I lost on them. I generally suck at timing but I've been shocked that they have not done anything yet.
There has been no filings on Pacer since June 26th.
The last things on there were a a status update on the settlement talks which seemed very positive to concluding (nothing on amounts)
The only interesting thing at that time was the Judge gave people 2 weeks (until June 25th) to notify him of if he should let the 2 cases go back on their own. The two sides filed on the 25th and no judgement has been made and nothing else.
Lots of volume today. Not sure why. I don't see any updates to the docket.
I doubt we'll see any status update for 8-10 more weeks unfortunately.
If you remember the status update from last week it stated that 4 of the cases and the remaining states think they will have a resolution in 3 months.
The other 2 cases and the 2 cases that state they are going alone stated they needed 6 weeks which in lawyer speak is really short. I assume they will wait till both are done and solicit the judge at that time. Add in the fact that they are looking at Criminal charges and I bet it extends.
EmCare is being bought out by KKR.
Tangenetially related as EmCare was a defendent on parts of the Qui-Tam case.
https://www.wsj.com/articles/kkr-to-acquire-envision-healthcare-for-5-5-billion-1528718957
I'd love to see some of the docs as I would assume their liabilities would be broken out in merger documents.
My thoughts exactly.
Another company can look at REPR and view the very good margins and see a way to take out half(?) of the SG&A spend. I'd argue that some will model up to 70% but I've never seen one actually be able to meet 50%.
Add in the fact that the product is useful to both a medical device company and to the drug mfgr's themselves potentially.
I am shocked that this much volume (even if half is thru a MM) didn't push the shares up higher.
to hit $0.02/share you need almost $1.0 in profit before taxes at they have a tax rate at 20% per their last Q.
Assuming their OpEx are flat and margins stay around that 60% margin they would have to be almost at $5M in sales for the quarter. That is a 25% move vs the current quarter and 30% vs the same quarter a year ago.
Those are big hits.
The more I spend looking at it this company simply should be sold as the pump has great margins and could fit in nicely for someone. I agree with you that I would expect that to happen.
I actually got excited when I didn't see any buys from Mr. Manko from Mid-March thru the end of May. I thought maybe he was in a blackout and prohibited from buying. Does anybody know the rules for a director and 10% owner?
My last comment is that Joseph Manko our recent director who fund owns about 20% of the shares has been buying again in the last month.
He bought 80k shares in the past 30 days and his transactions were about 18% of the trading volume. The good news is that unlike in the fall his trading volume didn't push the shares up meaning there is more liquidity.
I have. No decent response to questions that show any thought or ability to explain the competitive landscape. What you see in the powerpoint is similar to what I've gotten in the past.
For me the company is univestable until there is a CEO named. I'm not enamored with Andrew Sealfon in the few interviews I've heard.
If the company has an awesome runway then why had R&D shriveled to nothing. I'd argue that the R&D line appears to be the line for legal expenses with regards to the FDA.
Good news:
Margins up or steady
Cost containment is pretty good so increasing sales primarily falls to the bottom.
Share issuance is fairly low.
Bad news:
Stock is expensive at TTM of $.03 (30x earnings).
Revenue growth over most recent quarter is slowing. 29%, 1%, 7%, -2%.
I know. Their current sales make up 1% of the TAM but that is a mix of the drugs, distributors, etc.
There are also incumbments that they have to steal from beyond the 6% CAGR.
Agreed on all that you said but I want to know who their competitors are. As an outsider all I can tell is that there are already incumbents so why can they beat them.
I would agree that they didn't connect.
Without hearing the presentation its hard for me to see how the presentation is tied together. How does Slide 4, 5 and 6 relate to REPR?
I've spent a lot of time on this and I simply don't understand how their tool is unique to the marketplace. It looks like others on the market and frankly I can't see where the fat pitch is.
I have no idea why these two are going their separate ways.
The One Case - Mason was the large settlement with EMCare ($29.6M out of $33M total). The other was not and they have different lawyers and states.
I wonder if Mason is pushing for more. He's already gotten a large win from EMCare and I wonder if he is looking for blood.
There was an update.
Pursuant to the Court’s Minute Order dated March 6, 2018, these parties in the aboveconsolidated
cases respectfully submit this updated Joint Management Report. The United
States, Defendant Health Management Associates, Inc. (HMA), and the Department of Health
and Human Services Office of Inspector General (HHS-OIG) are continuing to negotiate a
global resolution of HMA’s criminal, civil and administrative liability. The respective States
also continue to work towards implementing the framework for a global resolution with HMA.
The parties therefore request that this case be stayed for an additional period.
Since the last status report, the states of Alabama, Arkansas, Florida, Georgia, Kentucky,
Mississippi, New York, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee,
Texas, Washington, and West Virginia have executed settlements with Emergency Medical
Services Corporation. The United States, relators and HMA are in the final stages of negotiating
draft civil settlement agreements. The DOJ Criminal Division, Fraud Section, and HMA are
working to finalize documents relating to the criminal component of the global resolution, and
intend to request an opportunity to meet with the Court to discuss the criminal component of the
global resolution. Counsel for HHS-OIG has provided a draft corporate integrity agreement to
HMA and expects comments shortly. The parties continue to believe that there is a realistic
possibility of reaching a global resolution which would address the remaining claims of the
United States and the states against HMA in the underlying cases.
In light of the ongoing global settlement progress, the parties request a further stay of the
litigation. This MDL involves a complex and diverse set of health care fraud claims, and
presents numerous factual, legal, and logistical challenges. Accordingly, the parties believe that
an additional stay is necessary to conclude a global resolution with HMA.
The United States, the States of Florida, Georgia, North Carolina, Oklahoma,
Tennessee, and Texas, HMA, Emergency Medical Services Corporation, Pro Med Clinical
Systems, Newsome, and relators in four cases1
believe that an extension from June 18, 2018,
up to and until September 18, 2018, with the parties reporting back to the Court on or before
September 4, 2018, is appropriate.
Relators in the remaining cases2
contend that an extension of six weeks should be
appropriate to resolve all remaining issues related to the global resolution of claims between the
United States and HMA, and request an extension from June 18, 2018, up to and until July 30,
2018, with the parties reporting back to the court by July 16, 2018. Further, relators in two of
those cases (U.S. ex rel. Mason and U.S. ex rel. Jacqueline Meyer) wish to advise the Court that
their pendent state law claims against HMA are not being settled as part of the proposed global
resolution. U.S. ex rel. Mason also includes unresolved pendent state law claims against
defendant EmCare. Since April 2014, these cases, along with all others in the MDL, have been
stayed, and relators are anxious to return their cases to their respective district courts to
commence litigation on unresolved claims.
A proposed order with dates to be entered by the Court is attached. Regardless of the
date selected by the Court, the parties are most willing to report to the Court prior to that date
upon request.
If you really think that all they care about is getting their money (and I generally believe that is all a board does - mostly worthless) then you have to realize that they want the stock over $4.50/share as that is how they get paid at a much higher rate than their salary.
Their incentive and mine are tied in that we both want the stock over $4.50. I think you know this and I bet you own more shares of this than most on here.
Thanks for the post. I had not seen it earlier. Frankly I think the 2 massive posters are one in the same and both add absolutely no value.
Where did you see the news about the 3rd machine.
yep. That sounds right for him. Was the year even closed by then?
I will. IIRC the annual meeting was in April a few years back with a few weeks notice. I wish I still had a few shares. It would be interesting to attend. I thought it was in a lawyers office IIRC - the problem was I got the notice in my mail 2 days before the meeting.
I'm out and I appreciate the updates. i will not be in until they resolve this issue but it appears they have fixed some of their operations issues.
Chevy - I'm intrigued by 30k #. IIRC their permitting was only allowed up to 20k a few years back. Frankly I'd prefer to simply contact their IR department and ask if they are permitted to that higher amount but we all know we'd never hear anything.
looks like I was right Irish. This isn't a standard or simple process. The initial and secondary biz, yes. These toll roads are with 2 Federal Governments, multiple states and dozens of municipalities, counties and cities.
I expect we'll get an announcement late in June but it may slip due into July. My understanding is that they are in final DD with one or a few more companies. (I believe its only one) but there will be a lot of legal questions as people will use this change of control to get concessions.
If its not done by the end of June - then hopefully they can punt to put more pressure on Macquarie re the legal case.
Actually John - for a conservative investor knowing how this would stand in a bankruptcy proceeding is a useful thing.
I don't consider CHS to enter bankruptcy before this is resolved but its a none zero item. When you state:
docket is still entry. I didn't expect anything different.
Yep. I was hoping that before we sold this asset we would add some land on the one end and add tax free fuel. Hell that is how the Bridge makes all of its money (and the duty free liquor). You could run the toll at $0 EBITDA and make 2-3x. I assume that is what any seller would do.
I somehow missed that American Roads spent $17M in Q4 on new ceiling panels (that was grossly needed). Good to see investment in the business
Its a 20 year tolling agreement (maybe 25).
There already is the Ambassador bridge which is owned by the Mouron family. Due to the size of the tunnel many trucks especially open trucks carrying cars (a key thing in Detroit) use the bridge). The bridge also has untaxed fuel due to it being on the border. (Gas is usually cheaper by $.20/gallon but Mouron saves $.60/gallon in taxes that he doesn't have to submit to either country - which is what has made him rich.
The other new bridge is supposed to be start work here in 2018 with the selection of a construction company. Last I remember is that the Candians are so upset with the US that they are paying the full 100% and will own 100% on completion. I know the Mouron family has sued in damn near every court which has slowed the process but I think most of those appeals are dead and it will happen. This will definitely hurt the sale price.
not a great comp. The vast majority of the revenue comes from Detroit and that city nor the other assets have a growing population. The buyers of the Austin toll road are counting on that growth.
What is interesting is that LIBOR and the Fed just increased the Fed Funds rate. Will be interesting to see what this does as it increase borrowing costs so we may get a lower multiple. Like others have stated the faster they get this done the better (with the usual caveats).
no filings on any of the cases. at most I've found these to be 24 hours late.