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Boykin Lodging Company (BOY) Message Board

  • YahooFinance YahooFinance Nov 26, 1997 3:41 AM Flag


    This is the Yahoo! Message Board about Boykin Lodging Inc (NYSE: BOY), where you can discuss the future prospects of the company and share information about it with others. This board is not connected in any way with the company, and any messages are solely the opinion and responsibility of the poster.

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    • Understand most of the corporate people on the lodging side in Cleveland are gone. Rob, this is evidently a done deal. I don't see how any vote by stockholders on June 1 can change anything. Good riddance

    • I have written to the company protesting the bad sale price. I encourage all shareholders to do the same and vote no. Here is the BOY email address:

      What a sorry ass company! They sold us out!!

    • I am with you. I have 2000 shares, not much. I will be voting against the deal.

    • Hopefully Inst. are a lot more savy than that.

    • Well, I don't have many shares. But what litlle I do have, I won't be voting to approve a sell at $11. They are nuts. Make it $16 to $18, and we'll talk.

      I need to go and see how much of this is held by institutions. Institutions hopefully have enough savvy to know what the stock is worth, and will insist on more before they vote to approve the sale.

      Everybody needs to remember that the Board of Directors and the mangement of the company work for us. I know they don't think so, but they do. They can't make deals like this without first getting shareholder approval.

    • I've owned this dog for years and I'm glad it's now over. Boykin sure got a great deal for using our money over the years. Now he uses the leverage to purchase some of the plum properties for himself! This kind of thing happens over and over, where a principal uses a publicly-traded concern as a personal piggy-bank. A northerner that expenses his high lifestyle in a warm climate and the stockholders pick up the tab! Ineptitude is rewarded! ...just disgusting!

    • The deal requires BOY to terminate the hotel management agreement with Boykin's private company, according to the 8-K. I don't see the termination agreement in the 8-K so I don't know the terms of the agreement. Per the 10-K, BOY can terminate 18 of the hotel management contracts on 90 days notice with no payment. Terminating the 19th hotel management contract requires a payment equal to 2 times the 2005 management fee. I don't know how much the management fee is for that hotel.

      BOY itself only has 18 employees, so I assume the hotel employees are employed by the private company. If the management agreement is being terminated, the buyer will presumably have to hire those people. I don't see anything about this in the agreement, or if Boykin (private company) is getting anything on the side.

      In any case, if Boykin is giving up his contract, maybe this is a done deal.

      • 2 Replies to jrad52
      • I know it's rude to reply to my own message, but I'm doing this in pieces so that Yahoo doesn't cut me off.

        At March 31, BOY had net equity of $ 252.5 million, or about $ 14.20 per share (soft number because I don't know if the restricted shares are in the share count). The deal assumes that Marco Island will be sold for about a $ 30 million gain, and that Boykin will buy Pink Shell and Banana Bay for what looks like a gain of $ 6 million to BOY. So book value should increase by around $ 2 per share. Then, there are several assets the buyer is getting that aren't in book value. If I read the 10-K correctly, BOY is suing its insurer for $ 22 million in damages due to a 2004 hurricane. It looks like nothing has been recorded for this part of the insurance coverage yet, due to uncertainty of recovery, but I'm sure BOY thinks it's worth something or else the company wouldn't have filed suit. Finally, BOY's subsidiaries have an NOL carryover with a tax value of almost $ 15 million. No asset has been recorded for this value yet. The buyer will get this NOL; it is certainly not worth anything near the full value, but it's presumably worth something. So the real book value is probably somewhere around $ 16.50 - $ 17.00.

        Then this number must be adjusted for the value of the properties. If I assume the discount is $ 5 or $ 6 per share (comparing the $11 sales price to the adjusted book value), this implies that the hotel properties being carried on the books for $ 360 million were only worth $ 250 million. Sort of a big discount that should have been recognized in prior financial statements.

    • Seems reallyy cheap, especially considering that it's contingent on the sale of Marco Island going thru. Who set the value for the Pink Shell & Banana Bay Resort?

    • This company is so frustrating. It can't make money operating its hotels, but does very well selling them. And is it ever going to tell us what happened to its consideration of a plan to sell the company?

      The Radisson was purchased for $ 27.25 million in 2003, and BOY has spent only $ 82,000 on the hotel since then. Now it's selling the hotel for $ 58 million (I assume before commissions and expenses). So the gain is somewhere between $ 25 million and $ 30 million, about $ 1.40 - $ 1.70 per share. There's no indication if this will be structured as a taxable sale or a tax-deferred swap. Anyway, once again BOY is selling a hotel at a significant premium to book value, while the stock trades around a 33% discount to book value. BOY keeps giving contradictory signals about a sale; I just wish they'd resolve the issue so I could move on. Considering the company's overhead structure, I don't see how they can survive as a stand-alone operation if they keep selling off assets.

    • Total sales price - $ 23 million

      Net book value @ 12/04 - $ 7.26 million

      $ 3 million of proceeds goes to minority owner, not sure how much of the NBV is attributable to minority owner.

      Anyway, gain is at least $ 13 million, or about 75 cents per share. Deal is tax deferred, so no required cash distribution, but it points to the value of the company's overall portfolio of hotels.

      Another way of looking at it - the hotel sold for $ 115,000 per room.

      Assuming financing is available, and the company doesn't renege on its plan to sell out, I still think the stock is worth at least $ 15 per share.

      • 1 Reply to jhanle1948
      • <<
        Anyway, gain is at least $ 13 million, or about 75 cents per share. Deal is tax deferred, so no required cash distribution, but it points to the value of the company's overall portfolio of hotels.

        Another way of looking at it - the hotel sold for $ 115,000 per room.

        I have reentered, at a bit cheaper than I left although I was hoping for a still lower price (and passed up some better entry points waiting for still cheaper).

        There was that really crappy asset sale earlier in the year up in Yamika or whatever that concerned me. But the ADR for the entire portfolio is almost $100 and the occupancy is over 70%, so the portfolio should be worth north of $80K per room.

        I wouldn't buy this stock on the theory it is going to be sold or liquidated. If it is, well fine, but I wouldn't count on it. They arranged this San Diego sale so the tax could be deferred with another real estate investment. That is hardly conclusive, but it doesn't exactly sound like a liquidation is underway.