...they have similar assets, and when they were going to combine into one entity, the percentage owned was to be based on the book value of each. Since then, the Fort Worth Sheraton Property(1701 Commerce) went into bankruptcy and they delayed the 'merger', imo, until the effects of the bankruptcy on the assets of each was determined. Since VRTB had a much bigger percent interest in the Fort Worth Sheraton, its book value was hit more by the bankruptcy.
Right now, the tangible book value of each is as follows(at least as per my calculations):
VRTA = $3.42/share
VRTB = $2.91/share
If we look at the subsequent events section of the September '13 10q, it states that $700,000 will be returned to VRTB, and $64,000 to VRTA related to a Sheraton 1701 Commerce Deposit, and this will be treated as income in the December '13 quarter. If we add these funds back to VRTA an B's tangible book value, we get:
VRTA = $3.43/share
VRTB = $2.97/share
So, in essence, it seems to me that VRTA should be trading at a 15% premium to VRTB, rather than the current discount it gets. Right now, VRTB is bidding $1.81, so based on that fair value for VRTA would be $2.08 (rather than the $1.70 VRTA is trading at).
Again, this is based on the formula that Vestin last used to determine how VRTA an VRTB would be combined into one entity.
The only person to write never lost a penny is the Chairman/President/CEO. He collects $ 1,000,000.00 per year
I have lost $ 420,000.00 cash money that's my life savings. The person I know who did not lose a penny is the Chairman/President/CEO/ M S .