Replies to post #28761 on Phoenix Associates Land Syndicate (fka PBLSQ)

[MrPastorious]

First thanks for making my point for me. If you buy a car for 10k, that somone else had on their books for 20k it is on YOUR books at 10 REGARDLESS where it appraises. If you sell it for more, then it is a cap gain. What they did was buy assets on the books for (x +80) for the purchase price of x. if you have a house that you bought for 500 k, and you sell it for 350, they buyer has it on his books at 350. Next....You believe they have earned 80 million? Good for you! Look at their announcements. They claim the companies they own NOW earned 7 million in 2005, some of it BEFORE they owned them. So, I'll give you 5. Where's the other 75 million in earnings?
Let me pose a question to you. Assume that the management owns a boatload of stock. Assume that they do in fact have tangable shareholder equity of 80 million. What would you do if you were management? Would you do everything in your power to file your financials? Would you hire an actual investment banker to "maximize shareholder value"? Would you get a competent IR department that clears announcements with corporate council? (Another glaring error/misrepresentation. One announcement best jets is 80% owned by pbls. the next announcement it is "wholly owned"!!! What is wrong with these guys????) Or would you sell unregistered company shares to finance acquisitions? A few years ago there were something like 400 million shares. now after two buybacks there will be 815 million (if you believe what they say). NO other reasonable conclusion can be made other than that they have sold UNREGISTERED shares into the open market/or to private parties.

[MrPastorious]

Obviously you know nothing about how to account for an acquisition.
BTW, your entire argument is based on you selling the "car" at a profit. PBLS has not sold any of the "cars" they havepreviously bought.
Answer. You carry the car on your books at 10k. when it is sold, you book a gain of 8k. if it appraises at 18k, and you do not sell it, you do nothing to your books. It is still carried at 10k (less accumulated depreciation).

[MrPastorious]

So you are saying that the companies we bought reported false information as to the value of thier assets to the IRS? And those assets are only worth what we paid for them? Does that mean I don't really have an extra $8,000 dollars in my pocket for selling the car???
PBLS HASN"T BEEN SELLING "CARS" THEY HAVE BEEN BUYING THEM
No. I am saying that pbls bought those assets at lower than what they were carried for on the books of the previous owners. Book value is an accounting measure that DOES NOT neccessarily reflect market value. Those assets will be reflected on their books at aquisition cost. If a company pays more than what it the assets are on the books for (which PBLS did not do), the difference is accounted for in "goodwill".
Yes, those assets are only worth what you paid for them, WHEN you bought them. Any asset is only worth what is can be sold for.
Again, PBLS hasn't sold any of the businesses.
You do not carry that car on your books at 18k just because you believe you can sell it there.