Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I'm not a member, so can't reply to messages. You can email me at kobrien2001 at yahoo if you want though.
EI, if you're into the reverse split game, you might want to look at AMMJ. Don't know if it'll work out, but it is potentially interesting.
Earnings will be released on Tuesday morning.
The proxy is supposed to be sent out in October and it should have all the information you're looking for.
That is not true. You're looking at the Earnings Standard for the Global Select Market.
There are 3 other standards, and AMMJ won't be listing on the Global Select Market.
My guess is that after the merger, they'll qualify under the Equity Standard for the Nasdaq Capital Market....$5 million of equity, $15 million of market cap.
I don't really know though...I'm just here for the arbitrage play.
Sure, but you’ve still got 3 days to put your name in for this year. Somebody needs to run against these clowns.
From the bylaws regarding shareholder nominations:
that in connection with the Trust’s first annual meeting after July 22, 2020, or in the event that the date of the annual meeting is advanced or delayed by more than 30 days from the first anniversary of the date of the preceding year’s annual meeting, notice by the shareholder to be timely must be so delivered not earlier than the 150th day prior to the date of such annual meeting and not later than 5:00 p.m., Central Time, on the later of the 120th day prior to the date of such annual meeting, as originally convened, or the tenth day following the day on which public announcement of the date of such meeting is first made.
The announcement was made on 8/31, so the deadline is 9/10…or this Sunday.
Call me crazy, but I bet they purposefully didn’t put the notice on their website until yesterday rather than the day the PR was released.
Since nexpoint is engaged in litigation with them, it can’t even nominate trustees.
Shareholder meeting is Dec 15th. Not sure why this isn’t also posted on UDF’s news page. It was apparently released last Thursday.
https://www.globenewswire.com/news-release/2023/08/31/2735753/0/en/United-Development-Funding-IV-Announces-Third-Quarter-Distribution-and-Date-of-Virtual-Annual-Shareholder-Meeting.html
I'm not advocating for it. The only reason I mentioned raising capital was if they are determined to list on an exchange.
I don't think a $30 million market cap company with ~50% insider ownership belongs on an exchange. If you exchange debt for equity (and do so where shareholders can participate and not be diluted), then the market cap is $50 million. Perhaps the shares also trade up due to the stronger financial position as well, increasing the market cap even more.
I also think a merger with KFI is the ultimate end game.
Conference call was a good listen. Let’s hope they can close on some of the sales leads.
The uplisting talk still baffles me. I don’t see a point in uplisting if you’re going to be continuously battling the $1 minimum share price requirement.
The float and trading volume are not big enough to do a meaningful reverse split (ie one that gets you above $5/share).
I’d rather see them go the other way and deregister with the SEC. Continue to provide audited financials so the stock doesn’t go to the expert market, but save on the SEC related fees. Re-register with the SEC in a few years when (if) the company is large enough to trade on an exchange. Maybe the cost to deregister & reregister make this impractical though.
Alternatively, do a rights offering now to boost the float and then do a reverse split to boost the share price. Use the proceeds to pay down debt. They’ve done a nice job of deleveraging, but rates are so high that interest expense is still > 25% of operating income.
Kruger was expecting $65-70 of revenue in FY 2023, so to only hit $60 had to be disappointing. If it’s just pushed to FY 2024, no big deal though.
The tax credits certainly helped this year. Unfortunately, those were a one-time deal.
Website has been updated, sort of.
https://greystonepallets.com/
Form 3 filed by Lockard today, so I guess it’s officially official.
I recently set up an account at CTT auctions.
UDF IV sold between $2.40 and $3.04 per share from June - December of 2022.
I wonder why UDF “opportunistically” paid $5.75/share when it repurchased 11,813 shares in 2022. Maybe they can explain this at the annual meeting…
Anyone want to bet those repurchased shares belonged to one of the felons?
Yes, but the Insys case is the equivalent of the UDF Trustees suing the felons to recoup the legal fees, not a shareholder suing the Advisor.
I hope shareholders elect new trustees (assuming a meeting is actually held), but it’s not a given.
Must be nice to have someone actually looking out for shareholders.
Shareholder meeting intended to be held in Q4. Rest of the letter is more fluff.
https://udfonline.com/wp-content/uploads/2023/08/2023-UDFIV-ShareholderCommunication-Aug15-FINAL.pdf
I see they filed another appeal in the Nexpoint case. Delay, delay, delay.
The OTC website shows Drew Lockard as a director. It seems odd that there was no public announcement.
New director too?
https://theorg.com/org/greystone-logistics/org-chart/drew-lockard
Not sure how reliable “theorg.com” is, but Drew Lockard wasn’t listed as a director in the last 10-k. There’s been no SEC filing…I’d figure a new director would be worthy of an 8-k, or at least a Form 3.
Greystone is making some changes (IR guy, quarterly cc’s, new CFO, new director). I wonder if they’re going to merge with Trienda (Kruger Family Industries) and try to uplist.
If that’s the case, I hope Kruger treats us fairly in terms of ownership of the combined company. He seems to treat shareholders well (low salary, no egregious stock grants, etc).
Looks like they may have hired a new CFO.
https://www.linkedin.com/in/curtiscrosier
An expired ad for the position:
https://www.ihirefinance.com/jobs/view/395544165
I wonder if Bill Rahhal retired or if the new guy is more of a controller for the plant. It looks like he’s based in Quad Cities and not Tulsa.
UDF V released its financials. BV is about $3.90 per share.
It has one loan outstanding. The loan was supposed to mature on 7/31 but is in the process of being extended to 6/30/25.
Maybe we’ll get an annual meeting announcement next.
$18 to $13 may just be a 27% decline in value, but shouldn't book value have grown? If book value was $18 in 2015 and it grew at 10% per year, then it'd be ~$36 in 2022. If they didn't pay any distributions and were loaning money at 13-15%, there's no reason it shouldn't have grown at that rate.
UDF's second biggest borrower (Buffington) went bust, not because of Bass, but because he refused to keep playing UDF's game of extend and pretend (i.e. he wouldn't borrow even more money from UDF V).
UDF lied to its auditor about Buffington's ability to repay, which led to an SEC investigation and a levy of fines on UDF executives.
The audit firm was fined $250k(?) and the two auditors were sanctioned for the poor quality of the audits (pre-Bass).
The FBI raid wasn't due to Bass, unless you think every FBI agent was lying.
The top execs weren't merely charged with crimes, but were actually found guilty and sentenced to prison.
UDF presumably refused to let its new auditors continue their work once UDF figured out that it would hurt them at the criminal trial.
UDF went from paying ~$1.70 per share in distributions to $0.26 per share (return of capital, not distribution of income).
UDF couldn't even pay a $1.25 million bank loan on time. As the prosecutor rightly pointed out, if this business was so successful, why couldn't they pay off such a small loan?
The TX real estate market has been red-hot for almost a decade now, and apparently is still strong. And yet over 1/2 of UDF's loans currently aren't accruing interest. Yeah, the financials were audited, but we really have no idea how solid the book value actually is.
I'd say Bass was spot on. I believe the SEC and FBI were investigating before he got involved. If he would've just kept his mouth shut, he would've saved himself a bunch of wasted time/energy & legal fees.
In one of his emails (posted on UDF’s website), Bass says these guys are worse than Madoff…cocaine, hookers, Rolls Royce and Iranians.
Seems like the trial skipped over the good parts.
I also seem to recall Bass’ claim that Moayedi was bragging to people that he really didn’t owe all that money to UDF. Again, makes me wonder how he escaped prosecution.
So does that mean Moayedi is just incompetent since he apparently can’t repay his loans in this booming market?
I’m somewhat surprised UDF hasn’t offered to loan Trump money to build another casino in Atlantic City.
Doesn’t that beg the question if the market is strong, why are >50% of the loans on non-accrual status?
The management fee is based on equity + cost of treasury stock.
That seems kind of ridiculous that we pay a management fee on treasury stock.
The advisors should put us all out of our misery and have the trust tender for all its shares at book value. After the tender, the advisors would still earn the same mgmt fee even though the trust has no assets.
And with no assets, the advisors would have to do even less work than they currently are doing.
Talk about a win win situation.
We should all remember to send Kyle Bass a thank you card for finally allowing an audit to be completed.
Yep, in the audited financials, the implied 12/31/21 notes receivable balance was $8,534,766 lower than was shown on the unaudited financials. The interest receivable was $40,206 higher.
The 2021 letter said notes receivable - related party were approximately $9.1 million. If you take that number and add/subtract the 2022 activity in related party notes, you get a balance of $13,730. The 2022 balance sheet shows a balance of $19,589 (after adding back the $349 reserve taken in 2022).
So apparently the 12/31/21 related party notes balance was adjusted up $5,858 and the non-related party was adjusted down $14,393. Or maybe UDF classified a note as non-related party and the auditors considered it a related party.
Advisor fees were $5.6 million for the year (Footnote H). The management fee is 1.5% of the equity, so that implies the average equity was $5.6 / .015 = $373,333. And yet beginning equity was $338,926 and ending equity was $326,372.
WTF kind of adjustments are included in the Advisory Agreement such that the equity used to calculate the mgmt fee is 10-15% higher than the actual equity? Any chance we can extend the felons' prison terms by 10-15%?
Yes, that's correct.
2021 was unaudited. I was just noting the difference.
The average loan balance for 2022 was $247.7 million based on the 12/31/21 and 12/31/22 balance sheets.
Interest income in 2022 was $25,825,033. So the average interest rate was 10.4%.
Kind of impressive to earn a 10.4% rate on the entire portfolio when only 66% of it was accruing interest all year and you have some loans earning 7% (those loans must be the ones on non-accrual status).
Of course, only 44% of the loan book is currently accruing interest in 2023.
That wouldn’t affect the 12/31/21 balance.
Shareholders’ equity on the unaudited 12/31/21 balance sheet was apparently overstated by ~$8.5 million.
$255 of notes receivable.
$170 was considered fully collectible at 12/31/22, but $57 stopped accruing interest in 2023.
$48 (105 currently, after adding the 57 mentioned above) was deemed more likely than not, but not probable to be fully collectible, and no interest is accruing
$38 was deemed probable that it will be unable to collect all amounts due
So less than 1/2 the portfolio is considered fully collectible and currently accruing interest.
88% of the portfolio is with (presumably) Centurion. The remainder is with related parties.
All these non-accrual loans AFTER they lowered Centurion’s rate to 7%. I always kind of wondered why Moayedi wasn’t also put on trial.
Where should this be trading…25-30% of book?
They “opportunistically” bought back 11,813 shares @ $5.74. They can have all my shares at that price.
So when’s the shareholder meeting so we can vote out these asshats?
Holy cow…they actually released audited financials!?!?
BVPS is between $10 - $11.
https://udfonline.com/wp-content/uploads/2023/07/UDF-IV-Audited-Consolidated-Financial-Statements-2022.pdf
If they’re having such a hard time obtaining loan receivable confirmations from Centurion, then I wonder what loan values UMTH uses to calculate its management fee….
They might as well pull a number out of their ass for the loan balance and charge their “valued shareholders” a management fee based on it.
"overly complex nature of the business"
Is that code for ponzi scheme? :)
They may "take time", but I think 8 years is a little much.
This isn't that complex of a business...they only have 39 loans for crying out loud.
According to the latest shareholder letter, they amended the Centurion loans effective 12/31/20 and retroactive to 1/1/17....so they should have agreed on the loan balances at the end of 2020.
Funny enough, Hollis' last letter to the shareholders was in August 2021 and he didn't mention the loan modification. I guess he had to mislead shareholders one last time before he was hauled off to prison.
I'd vote for you.
Today is the 5 year anniversary of the SEC settlement. I wonder how the neverending audit is progressing…