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Anyone ever bother to check insider ownership?
Hard workin Holly owns less than 35k shares.
Phillip Marshall, the dope that wrote the letter, owns 3,280 shares.
These guys are an absolute disgrace.
Absolutely pathetic.
Mgmt continues to take no responsibility for the situation the company is in. Bass wasn’t responsible for hard-workin’ Holly’s SEC settlement, the fudged loan docs for Buffington, the intercompany loans, etc.
It’s been nearly 5 f@*!ing years with not only no financials, but also no updates save for the debt level.
Why not put out a release giving gross loan balances and their status (accrual, non-accrual)? Why not let us know the level of realized losses on loans sold? How about a cash balance? How about the amount of loans that have been repaid?
The only thing we can be sure of is that Holly is working hard.
Thanks. If they only would have put that in bold, I might have caught it. :)
13-G says “managed accounts” advised by Dondero.
13-D says “a managed account” advised by Dondero.
Since Nexpoint hasn’t sold shares, my guess is that Dondero no longer advises some accounts that held shares. Who knows if those accounts sold their shares after firing (?) Dondero. My guess, based on the price action, is that they did.
The other possibility is that Dondero still advises the same accounts but sold all of the shares out of some accounts. I doubt that’s what happened since Nexpoint hasn’t sold any.
Nexpoint is trying to get an annual meeting called. Someone is finally pushing for change. They also sold 800k shares.
Financials won’t be released until the last week of August. It always takes longer to release the 10-k becase it’s audited.
I have no idea what to expect. If gross margins come in at the same level as Q3 then I think we go up from here. If they are back to 10%, then we go down.
Greystone got between $2-5 million from the PPP fund. There should be no issue with getting it all forgiven.
Same mgmt team.
Whitley Penn was sanctioned by the PCAOB. Its report gives some good background on the charges that UDF ultimately settled with the SEC.
https://pcaobus.org/Enforcement/Decisions/Documents/105-2020-002-Whitley-Penn.pdf
Whoever asked, it’s 2022 not 2021.
I’m not a member, so can’t do private replies.
According to the court filings, trial is currently set for Jan 18, 2022. Any bets on whether ol’ Holly-boy can get the financials filed bythen?
Here’s Bass’s presentation on the opportunity to take over UDF assets.
http://www.udfonline.com/wp-content/uploads/2019/04/Tab-22-HAYMAN0002455-2489.pdf
UDF’s IR people are worthless.
So there’s still an ongoing criminal investigation of UDF. Could be a reason for the financials not being filed.
UDF financed the acquisition of Scott Felder homes back in 2014.
http://www.udfonline.com/united-development-funding-iv-finances-acquisition-scott-felder-homes/
Loan was around $10-12 million, iirc. Buyer was a related party to UDF (25% owned by good ol hard-workin Hollis).
Scott Felder was sold to private equity in 2018. I’m having trouble posting multiple links, but you can google it. No terms were announced, but presumably UDF’s loan was repaid and it might have even gotten some upside via the loan’s conversion feature.
Looks like UDF changed its attorneys.
Big volume 2 of the last 3 days, for whatever that’s worth.
The deferred revenue footnote. I believe Walmart is the customer that advances money. Advances in the first six months were $0 and were $5,981,710 in the 9 month period.
Yeah, that grant could be pretty material for a company this size....maybe 10 cents a share (it’s tax free too) and the stock was trading at 33 cents.
So much good news in that report...
Gross margin, obviously
$6 million order from Wal-mart
PPP loan...should be $3-4 million and completely forgiven by govt
Raised prices on pallets
Prime rate is falling (already known)
Increased expected production on leased machines again
Etc
Maybe they are finally turning the corner.
Schwab lets you buy it.
I went to the TX Comptroller website and looked at the Centurion entities.
From UDF's 9/30/15 financials, there were $386,520 of funded loans to Centurion entities & $120,440 of unfunded loans (so maximum loan amount of $506,960).
Of those amounts, $339,153 of funded loans are to entities that are still active and $47,367 are to entities that are currently inactive. I don't think you can tell too much from this(CMGT Williamsburg is still active, even though the development was sold to DR Horton), but figured I'd post anyways.
The maximum loan amount to active entities is $442,376 which is somewhat in line with the bond filings. UDF IV had made ~60% of the loans to Centurion on 9/30/15...so if that % is still in the same ballpark, then Centurion's balance to UDF IV would be around $440.
So, I guess either a) the loan docs include accrued interest, b) Centurion hasn't paid back much principal c) UDF has made additional loans to Centurion or d) Centurion has paid a larger % back to UDF IV than to the other UDF funds.
I bought some more.
Yeah, that was one of the developments that MM mentioned selling in his affidavit.
I went back to Greenlaw’s affidavit and pulled some numbers. Some of this is just random thoughts.
Centurion’s loan balance at 9/30/15 was $679 ($386 at UDF IV).
They sold assets to repay $167. Since it doesn’t say “principal”, I assume this includes accrued interest.
Moayedi’s affidavit states that Centurion’s loan balance has steadily decreased since the attack. The affidavit was dated 3/28/18. According to the bond docs, Centurion’s balance was $681 on 12/31/17 and $733 on 12/31/18....so it’s actually increased. Maybe the loan docs include accrued interest.
Moayedi also stated that he sold Regatta, Shahan Prairie, Sinclair, Southern Colony, Travis Ranch and Williamsburg to DR Horton in order to pay back UDF loans. I need to go back to the financials and see what those loan amounts were.
UDF’s outstanding loans at 9/30/15 were $1,251 ($626 at UDF IV).
On 12/31/16 the outstanding loans were $882. Buffington had $142 of principal forgiven on 12/31/16 (all in UDF I & III), so excluding that, the loan book decreased by $227.
UDF IV had $68 of loans to Buffington on 9/30/15. The collateral was eventually sold for $40. I’d assume the sale closed in 2017.
Nice find!
They can’t hold one until they file the financials, iirc.
Look at the top of pg 29 of the last 10-k they filed and then tell me why my post was “FALSE.” I haven’t seen any exemptions granted by the Board.
No person can own more than 9.8% of the shares...so Dondero owns just about all that he can.
They own a total of 9.6%, not 20%. Dondero’s shares include Nexpoint’s, etc. Looks like they added about 900k last year...an increase of about 45%.
Strategic Opportunities and the other Nexpoint fund we know about didn’t change their holdings in Q4.
At this point, I’d guess the delay has more to do with the disclosures than with the accounting and/or writeoffs.
I also talked to IR again. They have been filing tax returns.
Rosehill Reserve transaction closed in UDF V.
I believe the senior loan was $12 million last year and UDF loan was $26 in Hollis’ affidavit, so
I assume they are taking some kind of hit. Hard to say for sure without knowing what acreage was sold and how much the MUD reimbursements are.
https://www.sec.gov/Archives/edgar/data/1591330/000110465920011648/tm206863d1_8k.htm
Still no Form 8937 for UDFI. If the 2019 distributions were income (I haven’t received my 1099 yet, so don’t know for sure), then I would assume that means that UDF has generated positive income over the 2016-2019 period. Or, in other words, they’ve recouped whatever NOL was generated in 2016 (when we know they lost money).
I played around with some numbers, and if I assume $50-75 of losses in 2016, and 30% principal paydowns per year, I come up with cumulative income in 2019.
This could be way off (maybe the losses were capital losses, maybe the distributions will be roc, maybe they haven’t filed tax returns so the distributions are income no matter what, etc), but I thought I’d throw it out there. Hopefully, we’ll find out soon enough.
I couldn’t find any Form 8937 for UDF V. They need to file that form if the distribution affects your basis (ie is ROC). So, I’d guess it was income.
Are you sure about that? It seems IR would have just told me it was ROC if that was the case.
They filed this form in connection with the 2016 distributions.
http://investors.udfiv.com/Cache/1001219600.PDF?O=PDF&T=&Y=&D=&FID=1001219600&iid=4213398
I talked to IR recently and they stressed that they are a going-concern and are currently funding loans (which wasn’t the point of my call and was said without me even asking). So either they’ve been told to stress that or they’ve been getting lots of calls asking that question.
They couldn’t tell me why the audit is taking so long. When I suggested that there must be some kind of dispute with the auditors, they denied it and said it would have to be disclosed if there were a dispute.
They will issue 1099s this week, so we’ll find out if the distributions are income or return of capital. Income would obviously be better, as that would mean UDF made money. The 2016 distributions were return of capital, fwiw.
I’m surprised it is up so much today. The PR was basically the same as last quarter and the financial info has been known for almost two weeks now.
Kruger has talked about margin expansion for awhile now. I think we need to see proof before it gets out of this trading range.
I do like the debt reduction though. $3 million is about 10 cents per share that should accrue to the equity value.
They increased the estimated future production on the leased machines again. Went from 152k pallets per quarter on the 3 machines to 161k. I sure would like to see those efficiencies start to show up in the gross margin.
That’s a different report though...NPORT-P not a 13-F. I don’t know who is required to file those, but hedge funds aren’t required to.
https://www.sec.gov/Archives/edgar/data/1356115/000175272419179368/Nexpoint_SO.htm
https://www.sec.gov/Archives/edgar/data/1663712/000175272419179366/Nexpoint_RES.htm
Holdings didn’t change as of 9/30.