Manufactured Housing Properties Inc. (MHPC)

[littlefish]

10bagger, I don't own this one but figure I'll comment just a bit on here- seems an appropriate place.

The company had increased workover expense in Q4 which should hopefully lead to boost in production for Q1 2012.

There seems to be an issue in collecting on some of the Dacca sale moneis still owed (pg 10 annual, also see note 2). Here's some from note 2:

"...In early March 2012, the purchaser informed the Company that it would not make the monthly principal and interest payments required under the Installment Notes, without giving any specific reason for this action. Such payments were required commencing in the fourth quarter of 2011 and principal and interest payments totaling $270,984 were past due in early March 2012, at which time the remaining principal balance was $1,649,704. Notwithstanding this action, the Company believes that collection of the Installment Notes is fully enforceable,..."

So maybe the company can collect. I'd want to look at the buyer of Dacca to see how healthy they are if the company had to pursue them in court for collection or get some kind of settlement/agreement on what is still owed to the company.

Their bank note looks maxed out currently (Note 5 i nannual with Table) with declining borrowing base but probably only modestly declining so probably not a bunch needed to pay back/stay current.
Looked like they also got it extended out to 2014 so that's helpful. If they can boost production and/or reserves, they may be able to tap more of the $25 mill loan (since they can only borrow roughly $3 mill now). They did mention not being in compliance with the covenants but probably not a real big concern givien the bank extended terms to 2014.

They have a 2nd lien now it looks like on their O&G property for $900K- 2nd to the bank loan I believe. Not sure if that would further restrict the bank note or not. They do have enough cash on hand probably for a little bit. May be worth waiting to see what Q1 produces with the workover $ spent in Q4. See if it pays off.

Q4 had the loss on something like $600-$700K revs. Not bad or good and the workover expense certainly meant more expense in the Q. I would probably try to find out more about the property if I had more time but am squeezed a bit tonight.

This is just me glancing thru so could be some errors. Looks mildly interesting to me (which is pretty good considering I've become so dang skeptical in my old age LOL) but thin obviously.

Good luck. Hope that helps.