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ilenes.. Want to thank you for your input. Your credentials are quite impressive. Again, thank you for your time.
Could be the reason for AH activity..
By Daniel Taub
March 8 (Bloomberg) -- General Growth Properties Inc.'s larges creditor, Fairholme Capital Management LLC, and Pershing Square Capital Management LP, the biggiest shareholders, plan to jointly invest $3.93 billion in the mall owner to help it emerge from bankruptcy, according to a person familiar with the plan.
The investment would combine with $2.63 billion from Brookfield Asset Management Inc and pay unsecured creditors in full, including interest, in cash, said the person, who asked not tom be identified becasue the talks are private. The new plan is being considered by General Growth's board and may be announced as soon as today.
Anyone watching AH... 14.5 x 14.75
CNBC..Tom Nolan on now...
Said tomorrow back on the NYSE
CIC China Investment Corp may be interested...
http://finance.yahoo.com/news/Judge-could-tip-General-rb-3757611010.html?x=0&.v=1
JOHN
May be relisted on NYSE as soon as March 5http://finance.yahoo.com/news/General-Growth-Properties-Inc-bw-2284103909.html?x=0&.v=1
GLTA John
Henry H Goddard subject?
I know how you feel. This stock has been a God send. I sold some too early. I wanted to get my initial investment back and enough to ge me through my unemployment period.
GLTY
Tax question help please....
I have some short term capital gain income and no ordinary income for this tax year. How do I calculate capital gain tax due?
Thanks for any input
Listen to this video ...
I've been following this guy for some time. He has been on the money from the beginning. Still holding 22k free shares.
http://wsmco.com/show.aspx
GLTA
F.Y.I....
go to wallstreetmedia.com to view two videos from todd sullivan talking about ggwpq
still holding
Would appreciate GGWPQ
Contrats to all longs..
Going to be a great day
TDameritrade .185x.195
.18 x 19.5
hello all
WOW!!! Maybe I can retire in a year...
GLTA
Hedge Fund Managers Stock Picks and Pans
Thursday, May 28th, 2009 by Hone 0 comments to this post
The conference often attracts managers who rarely speak to the public.
We attended the event, held on May 27, so you didn’t have to. Exclusivity, however, does not guarantee great results. As Barron’s notes in its current issue, the performance of nearly all the picks presented at last year’s conference was dismal. Perhaps that explains why so few of last year’s speakers came back for another go-around this year. Only David Einhorn, of Greenlight Capital, managed to earn a return worthy of his pay. Last year, Einhorn told attendees to sell short shares of investment bank Lehman Brothers. Less than four months later, Lehman filed for bankruptcy. Anyone who acted on Einhorn’s advice earned a return of nearly 100%. Activist investor Bill Ackman, who is best known for his quest to get seated on Target Corp.’s board of directors, has taken a shine to a troubled owner of shopping malls. Ackman, whose hedge fund is called Pershing Square Capital Management, says he thinks General Growth Properties (GGWPQ.PK) will emerge from bankruptcy reorganization in a strong enough position to benefit investors daring enough to buy its shares. Stockholders “can make a lot of money in a bankruptcy as long as the assets are worth more than the liabilities,” Ackman says. General Growth’s properties, which include more than 200 shopping malls in 44 states, are still generating plenty of cash, he says. General Growth sought bankruptcy protection because it couldn’t refinance its mortgages during the financial crisis, not because its business is unsound. Shares of the real estate investment trust closed at $1.31 on May 27. Ackman thinks the stock is worth $10 a share in a bankruptcy-court decision that does not involve liquidating the company — his most pessimistic scenario — and as much as $30 if court rulings favor General Growth. Jim Chanos, of Kynikos Associates, the short seller who famously uncovered fraud at Enron in 2001, now has a bone to pick with for-profit educators and health-care companies. “There’s a new sheriff in town,” Chanos says, referring to President Obama. He thinks the administration views health care and education as rights that should be available to all citizens. Therefore, the government will squeeze profitability out of for-profit education and health-care companies. Chanos is bearish on national for-profit educators, such as Apollo Group (), owner of the University of Phoenix chain. And he says that Lincare (LNCR), which provides oxygen services to patients in their homes, is “the poster child” of the type of company that will suffer as the administration seeks to curb health-care costs. Apollo closed May 27 at $50.85 and Lincare closed at $22.60.
David Sokol, chairman of MidAmerican Energy Holdings, a subsidiary of Berkshire Hathaway and one of a handful of men who is in the running to succeed Berkshire’s Warren Buffett, was the only presenter who was not a hedge-fund manager. Sokol says that the housing market won’t stabilize until 2011.
Read more…
WOW...1.37 x 1.38 premarket..
glta
A good read..
http://www.gurufocus.com/news.php?id=53776
GLTA
http://www.stockwatch.com/utilit/utilit_snapsh_result.aspx
type in ggwpq
change from canada to usa
last trade @.6625 over 23mil shares traded
HAPPY BIRTHDAY million. ...
Hope that it will be a memorable one for all of us.
GGP up in premarket .96 x .98
good reading from reitdude42 yahoo board..
View all Topics | View all Messages < Newer Topic | Older Topic >
NAV and bankruptcy 11-Mar-09 11:28 pm I've been reading comments on this message board since late last year. There appears to be a number of astute investors that may benefit from the following analysis.
(I should prefice this by mentioning that I do own GGP common stock in my PA).
I had noticed some attempts to determine the equity value of GGP using a sales per square foot analysis (i.e. 200M sq. ft. x $200 per sq. ft.). In the case of regional malls, some anchors own their space which artificially inflates values. A more acceptable exercise to ascertain equity value is using a Net Asset Value (NAV) approach derived from a portfolio level cap rate estimate.
Admittingly, given the dearth of regional mall (or any real estate product type for that matter) transactions, determining an appropriate cap rate may appear to be a fool's errand in this environment.
Two years ago, at argueably peak real estate values, most buy-side and sell-side REIT analysts applied a cap rate assumption of 6.25% to GGP. By comparison, Taubman was 5.50%, Simon 6.00% and Macerich 6.25%. Those familiar with regional malls will notice the relationship of cap rates to sales productivity i.e. higher portfolio sales productivity implies a greater ability to grow NOI which is reflected in a lower cap rate under the following relationship:
IRR requirement - NOI growth = cap rate
Anyway, assuming cap rates for class A regional malls increased over 200bps (as most industry veterans assume), this NAV analysis will assume the following scenarios:
Best case = 8.00%
Average case = 8.50%
Worst case = 9.00%
Examining the most recent supplemental and 10K, we find 2008 total NOI of $2,576.51M. Assuming a 2.5% decline in NOI in 2009, our NOI estimate is $2,512.10M. For those that are interested, NOI is an unlevered metric and applying GGP's levered multiplier, this NOI decline translates into an over 6.5% drop in 2009 earnings or FFO. Let me explain. . .GGP's fixed charge coverage ratio is 1.6x. From this, every $1 goes to the debtholders and the equity holders are left with $0.60. As such, its true debt ratio - not influenced by movements in its common equity price - is 62.5% debt (1/1.6) and 37.5% equity (0.6/1.6). Its true levered multiplier is 2.67x or 1/(1-0.625) and the FFO growth estimate is -2.5% NOI growth x 2.67 or -6.67%.
As a result, here are values under our cap rate assumptions:
At 8.00% = $31,401.25M
At 8.50% = $29,554.12M
At 9.00% = $27,912.22M
To this we will add only the tangible assets from their balance sheet:
Community development land @ 75% value = $1,367.52M (I've adjusted its 2004 book value by 25%)
Developments in progess = $1,076.68M
Cash = $168.99M
Accounts receivable = $385.33M
Prepaid expenses & other assets = $835.46M
Total Assets = $3,833.98M
And, deduct all liabilities and minority interests:
Mortgages, notes & loans = $27,826.63M
Preferred debt = $121.23M
Deferred taxes = $868.98M
Accounts payable = $1,539.15M
Total Liabilities = $30,355.99M
As such, with 319.5M common shares outstanding, the NAV estimate is:
At 8.00% = $15.27 per share
At 8.50% = $ 9.49 per share
At 9.00% = $ 4.35 per share
It is only at cap rates above 10.55% where the equity value is zero.
So what's my point?
There's value in the common stock. . .it may just take time until the credit markets become more conducive to transactions to realize. Perhaps this is why the creditors have not forced the company into default.
In fact, GGP is essentially operating under a pseudo-Chapter 11 scenario. But instead of relinguishing oversight to a bankruptcy judge, the lenders maintain strict control over GGP's strategic activities that are designed to reduce debt (property sales, joint ventures. . .etc).
Hope that this was helpful. Good luck to all the longs.
FYI....firstly, Excuse this post if it comes across as incoherent I am on roxicet as I enter this post. I was involved in a bad accident last Friday and underwent 5 hours of surgery to my face. I have stitches in my scalp, forehead, eyebrows, eyelids, ears and chin. My face is hard as a rock and I have to wash my stitches 2x aday with 10% baby shampoo and apply bacitracin once a day. I was told to pay close attention to the stitches at the tips of my ear lobes because I could lose them if the circulation is poor. I am miserable, weak and in pain. The last thing I want to to is look at my face in the mirror and take care of these stitches which is not without emotional and physical pain. How I wish that I could have had the incisions sealed instead of dealing with this ordeal. I though that I understood what this technology would mean to surgical procedures but now more than ever I pray for it's success. WISH ME LUCK
Talon
Another 17,500 shares for me. Not selling..Glta
CTUM please
CONSORTIUM SERVICE MGMT (NASDAQ:CTUM) Strong Uptrend
Smart Scan Chart Analysis confirms that a strong uptrend is in place and that the market remains positive longer term. Strong Uptrend with money management stops. A triangle indicates the presence of a very strong trend that is being driven by strong forces and insiders.
Based on a pre-defined weighted trend formula for chart analysis, CTUM scored +100 on a scale from -100 (strong downtrend) to +100 (strong uptrend):
+10 Last Hour Close Above 5 Hour Moving Average
+15 New 3 Day High on Tuesday
+20 Last Price Above 20 Day Moving Average
+25 New 3 Week High, Week Ending February 23rd
+30 New 3 Month High in February
+100 Total Score
Open High Low CTUM Price Change
1.60 1.68 1.54 1.61 +0.01
Streaming Chart
ninjaturtle..
Labranche and co. also has a subsidary located in the Netherlands.
Patriot Scientific settles dispute on patents
By Bruce V. Bigelow
UNION-TRIBUNE STAFF WRITER
June 15, 2005
San Diego-based Patriot Scientific, which holds certain microprocessor patents, has resolved a dispute that had sidetracked lawsuits it had filed against major computer makers for patent infringement.
The dispute erupted last year after Patriot began to assert patent claims for its "variable speed system clock" technology used to synchronize a processor's high-speed operations.
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The company said it reached an agreement with the TPL Group of Cupertino to unify patents shared by two inventors working on microprocessor technology during the 1990s. The deal also grants the TPL Group full responsibility and authority for commercializing and licensing the technology.
Patriot said the agreement clears the way to resume lawsuits it filed in late 2003 against five Japanese computer makers: Sony, NEC, Toshiba, Matsushita and Fujitsu.
The San Diego company argued the companies were selling computers equipped with Intel processors that allegedly infringed Patriot's patents. The five cases against the Japanese computer giants were later consolidated into a single case in federal court in Oakland.
The suits represented the opening salvo in Patriot's strategy of generating revenue by asserting patent infringement claims against a variety of electronics manufacturers. Patriot notified 150 additional companies of possible patent infringement last year.
But the judge overseeing the consolidated case brought it to a halt last fall, after the TPL Group challenged Patriot's exclusive rights to the core technology. Intel raised similar arguments in a suit it filed against Patriot.
The San Diego company maintained that it acquired the core technology through several related patents in 1994. Patriot got the technology in its buyout of Oregon-based NanoTronics, which bought the patents from a trust established by a co-inventor, Russell H. Fish III.
But the TPL Group, headed by former patent lawyer Daniel E. Leckrone, asserted it also had rights to the technology that had been conveyed by the other co-inventor, Charles H. Moore.
Patriot said last week its agreement with the TPL Group ends the dispute.
"The path is cleared by virtue of these accords," said Jeff Wallin, Patriot's chief executive. "There's going to be equal ownership of the company that's formed to manage the entire patent portfolio."
It remains unclear, though, whether the revised strategy will succeed.
In April, a federal judge in Santa Clara reaffirmed an arbitration award against Leckrone in a patent dispute with another inventor.
Also, Patriot's auditors issued a warning last July about the company's ability to continue operating as a going concern. The note accompanied the company's 2004 financial statement.
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Bruce Bigelow: (619) 293-1314; bruce.bigelow@uniontrib.com