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Why? We still haven’t seen financials. Bass could very well turn out to be correct in his analysis.
Final order on sanctions was filed today. UDF received its legal fees of $256k and the judge added an additional $100k for total sanctions of $356k.
Yeah, but how can margins be better if sales price dropped 20%? It’s almost like they are making them out of cheaper material or removed a manufacturing step. Beats me.
I’ve been buying more down here. Assuming they qualify for the employee retention credit, margins should be excellent the next 2 quarters.
It wasn’t included in the last bill. I don’t know what the democrats think of it.
Any idea what is meant by “restructuring the pricing” and “restructuring of pricing resulting from changes in the manufacturing process?”
I thought they increased prices, but now the new pricing leads to lower dollar sales?
I’m befuddled. Who knew plastic pallets could be so complicated.
Re sales slipping, my guess is Greystone is manufacturing a different, cheaper pallet for igps now. If they sold a heavy duty pallet last year for $60 with gross profit of $6 (just pulling numbers out of my ass) and now igps needs light-duty pallets that sell for $45 (witha gross profit of $6), it doesn’t matter that sales dollars are down.
I think that’s why greystone mentions that volume isn’t down much even though revenues are way down.
It’s possible that last year may have included the impact of Costco’s decision.
I’d like to know what happened with Miller. It’d be nice if they’d give us some revenue guidance in the PR.
It’ll be interesting to see what other sanctions are imposed. #36 in the filing is basically left as a TBD. I imagine Bass will have to post something on his website regarding this (since he sent out an email blast announcing the original motion). I’m looking forward to that email...
Good news / bad news quarter, it seems.
They lost part of the Miller Coors business and overall sales were down 20%.
GM was 20% (!) though so gross margin $ was actually up even with sales down.
Quantity of pallets produced was only down 3%.
Wal-Mart placed another order.
I wonder what the fire retardant issue that they’re spending r&d on is about.
With sales down 20%, they likely qualify for the employee retention credit for Q1 (and Q2, assuming sales are down 20% in Q1). That credit could be worth around $2 million per quarter.
Assuming last year’s sales were due to igps ramping up, I wonder what greystone’s steady state sales will be. It sure looks like last year was peak sales unless they sign another major customer.
Bass and his lawyers were sanctioned today. UDF was awarded $256k of attorney fees. The order was pretty scathing.
https://courtsportal.dallascounty.org/DALLASPROD/DocumentViewer/Embedded/g5_A-VInFDDYqEapWu3kL5LH7geA197aby93esP1tsc4HEW1g_3mbPcG711XSkYQOTmpKpYuXVN5pq8hpgbw-A2?p=0
Costco is switching to plastic pallets this year.
https://www.clubstorepackaging.com/post/get-ready-costco-s-transition-to-plastic-pallets-is-coming-in-2021
I’d think that should help Greystone’s sales even if it’s not a direct customer.
IR told me it should hit today or tomorrow.
Anyone get the 12/11 distribution yet?
I think the damage estimates bantered around here are nuts.
I don’t think there are any damages due to share price decline. What would the share price be if UDF filed its financials on time? The auditors said they wouldn’t audit until the SEC investigation was complete. What does that have to do with Bass? If UDF replaced its execs due to them misleading the auditors, then the audit would have likely been done long ago.
Imo, the only damages will be losses suffered from quickly liquidating loans (due to line of credits being pulled) and lost profits on business lost due to losing bank funding. Even those might be iffy because the lack of bank debt is due to no audited financials.
Keep in mind that UDF isn’t an innocent victim here. They misled their auditors and paid fines to the SEC. Bass exacerbated their problem, but he wasn’t the sole cause of it. Blaming Bass for the lack of an audit after 5 years is absurd.
Nope. I think the last one took a week or so.
Uh, UDFI opened the year at $2.95 and is no longer trading. NHF has paid 12 dividends this year.
I’m long UDF but Holly’s record is shit no matter how you look at it.
And another distribution is announced.
http://www.udfonline.com/udf-iv-distribution-announcement-2/
Bass changed lawyers. Maybe now the pissing contest will end and some actual discovery will take place.
NHF out with a tender (kind of) to acquire all the UDF shares at $1.10. Offer is contingent on them being able to review UDF financial info (which I guess makes it not much of an offer).
It appears that Hayman’s attempt to disqualify UDF’s attorneys failed.
They are now required to post the order stating that on the udfexposed website.
(P) in the objection is pretty funny. The court apparently found that conduct by Hayman was “reprehensible.”
https://courtsportal.dallascounty.org/DALLASPROD/DocumentViewer/Embedded/UHnt9BNFj1eLZc_OtA8eGaKt5bHIf0YfZJrkNlV-zyh1OyqR2dXdB7cSzytIWyzXKGJ8Y7el3D3pWeoRJHa6vg2?p=0
SESN is moving up. Must be some excitement around Vicineum.
Another 6.5 cent dividend announced today.
http://www.udfonline.com/udf-iv-distribution-announcement/
Has Kruger forsaken us or will we get a quarterly press release containing at least a bit of a corporate update?
Bloomberg article from a couple days ago on lawsuit.
https://www.bloomberg.com/news/features/2020-10-30/kyle-bass-s-texas-feud-spotlights-short-selling-tactics
No idea about AFFY’s run. I assume someone is pumping it or the momentum crowd has gotten involved. It’s obviously overvalued imo.
I bought MYRX because it was trading at less than cash, so the nols were basically a free lottery ticket. Absent a deal being announced, I’d have a hard time holding if it was at AFFY’s level.
I actually considered that to be good news. Or at least better news than revenue being down due to volume being down.
I didn’t think the quarter was bad. I wonder if the hypergrowth from igps is over though. Might need another big customer, or Walmart really ramping up, to get back to revenue growth.
LeBarre bought back the shares (and then some) that he sold earlier in the summer. He wasn’t exactly timely in his filing though.
I don’t know why Kruger bothers buying 2k shares.
MYRX has $3 million of tax credits, so they’d get a $3 million refund IF the new stimulus allows for the monetization of credits.
ENZN has $15.8 million of tax credits.
Here’s a WSJ article from July.
https://www.wsj.com/articles/corporations-seek-tax-credit-cash-out-in-next-coronavirus-relief-plan-11595237402?mod=hp_lead_pos7
Would be nice if the stimulus bill currently being negotiated allows companies to monetize tax credits. There was talk of that possibility earlier in the summer.
According to a court filing, Centurion’s balance across all UDF funds is either $839 or $900. Sure hope he plans on paying one of these days.
Haven’t received anything yet. I’m sure Hollis is working really hard on it though.
Anybody hear anything on the update we were supposed to be getting?
6.5 cent distribution announced.
http://investors.udfiv.com/file/Index?KeyFile=405250378
Sorry we’re so incompetent that we can’t get an audit done in 5 years and your investment is no longer liquid. Here’s a nickel for your troubles. Remember to vote for us if we ever hold another annual meeting.
Any idea if this was the settlement that had an extra payout if UDF generated $75 million of cash flow over some time period?
Seems like a decent quarter, all things considered. Not the blowout that Q3 was, but GM was still above 15%. The reversal of the valuation allowance added a couple of cents to eps. Sales were down due to covid delays. Ppp loan was $3 million and should be fully forgiven.
I finally talked to IR. Got the same spiel about a news release in a couple of weeks. Although, I got the impression that they were still deciding whether or not to include financials.
At this point, the lack of financials is hurting their case against Bass, imo. If they want to show that Bass was wrong, the best thing they could do is present financials that show the loans were either repaid or are still performing. Anything less and Bass can claim that his analysis was correct. The inability to issue financials for almost 5 years helps Bass.
Thanks. I’ve been playing phone tag with IR. Hope to talk with them by the end of the week.
Can’t vote if no annual meeting is held. Can’t hold an annual meeting without financials (at least according to UDF mgmt). Meanwhile, they keep on collecting their mgmt fees.
I have no doubt the audit would have been completed if Greenlaw, etc had been replaced years ago. Auditors need to rely on management representations. It’s hard to rely on those representations when the mgmt lied to the prior auditors and also agreed to pay millions in fines.
I called on Friday and left a message but haven’t heard back. Only Hollis & Co would be surprised that there could be consequences for not filing financials for 5 years.
It’s been nothing but one excuse after another.
At this point, I’d vote for Bass if he was up for election against Hollis.
I’d say 5 yrs is pathetic, not ballsy. Nice to see the SEC see through mgmt’s bullshit excuses. I hope Nexpoint will be successful in their quest to have an annual meeting. These clowns should have been kicked out years ago.
I’m surprised to see an insider sell at this time. I figured they’d be in a blackout period. Perversely, it might be a sign earnings are good. I imagine there might be issues if he sells 2 months after fiscal year-end (and 1 month before results are released) and results suck.