Replies to post #88125 on JP 3E Holdings Inc (JPTE)

[surfkast]

I concur with what you believe is the likely scenario is very possible as yes they can R/S the common and leave everything else alone.

So if preferred shares and warrants can be excluded from a reverse split then I think the plan is to destroy all common shares and send all old bagholders packing. Park can pull a token "reduction" in the A/S which isn't remotely proportional to the R/S. The effect of such a tactic is actually a massive increase in the A/S thereby giving Park all the "new" shares he wants.

[I ll be back]

Do the math.

A quick review on LoopNet would suggest that the Capitalization Rate for this property would be in the range of 6% for NJ market. Which is currently supported in most US markets right now for student housing.

Based on my industry knowledge as a former CCIM, the rule of thumb for expenses run 34% to 42% for this type of apartment complex. Assuming a 93% occupancy rate and average Net Operating Income (NOI) is going to be 62% of the collected rents or $1.4M NOI.

Cap the $1.4M at 6% Cap rate and you come up with a valuation in the $24,000,000 range. Surprise....Surprise!

If you use the $37,000,000 "membership purchase" your cap would be closer to 3.7%. Sorry, but that dog don't hunt!

Would LOVE to see the appraisal.

By the way, for $1.00, the NJ tax assessor will provide you with a full report on this property.

[Diamondhands45]

Funny because I knew that about preferred and I am not an OTC expert at all.


Love the wild speculation after the very commonly known exclusion for preferred.

Had to work hard to make that one look good.

Too funny