Thanks and I would be my stake in BBX that it is Lennar.....they own the property next it and the new parcel will allow them to add an additional phase
Yeah I think BBX has a reply due by around June 10th or something like that. I believe that will be the last response before the judge schedules a decision. I believe the judge will also eventually rule on some other motions by BBX to overturn the verdict. So we're probably looking at July or possibly August for some kind of final ruling I would think.
The main purpose of the tender is so that a) they can file a consolidated group tax return and b) Bluegreen can pay dividends to BFCF & BBX without being taxed (before it was 80% deduction, now it's 100%).
In fact BFC/Woodbridge/Bluegreen can't utilize all or most of BBX's NOL's and that actually came up in the meeting. BFC can't net $17.6 million anyway. BBX owns and sells the property. BFC only owns 80% of BBX so if they really wanted the cash BBX would need to issue a dividend to all shareholders. I don't expect BBX to do this. If they drain BBX of cash then BBX wouldn't be able to make more investments in cash generating assets that would be able to utilize those NOL's.
Yep. I attended the annual meeting today. Got to ask Mr. Levan some questions, chatted with Seth Wise, Leo Hinkley (Investor Relations), and chatted with a couple of other private investors who probably have a lot more invested than I do. I can't say I came away with a ton of new information, but the discussions did tend to reaffirm my belief in the value of the company. A couple of things I learned though:
- The BBX Sweets business after all the 'noise' from expenses to integrate the companies (legal costs, organization restructuring, etc.) will be profitable. I was worried they were just buying a bunch of money losing assets which was not the case. They continually talk about buying businesses that will provide steady cash flow. I didn't really ask about Renin though although I probably should have.
- Someone asked about why BFCF didn't buy the extra shares that were tendered and it's basically because it could jeopardize BBX's listing on the NYSE. The same goes for a buyback at BBX at the moment.
- Due to the NOL's the $17.6M sale will be tax free (federal at least, not sure about state).
- The property in Bonterra that is being sold to a third party is still going through the entitlement process. CG - Did you say you thought the buyer was Lennar? They didn't confirm but I got that impression from one of my conversations. The JV with CC Devco at Bonterra is going well and they don't even have an onsite sales office there yet.
- I asked about the sales at Bluegreen and they said they still expect things to continue to improve and that the sales and marketing efforts will pay off. Levan mentioned something internally they did which might have had a small one time effect on sales, but didn't really go into detail.
If I think of anything else I'll let you know.
"BBX Capital reported net income of $0.9 million, or $0.06 per diluted share, for the quarter ended March 31, 2015, versus net income of $1.3 million, or $0.08 per diluted share, for the quarter ended March 31, 2014."
Well I don't think the timeframe matters. If you really do something bad I don't care how long ago it is. I just don't think the penalty fits the offense. Especially compared to all the other financial execs who did much during the crisis and didn't even get a slap on the wrist.
Either way both the SEC and BBX have their responses in so let's hope the judge makes a ruling within the next month or so.