Does anyone know when the JLL report is due? It was originally targetted 4/23, but got pushed back to 5/6 to come after the 5/3 shareholders meeting. I haven't seen or heard anything.
I told you all it was going to 12. Now its going
The JLW partners who are now big
shareholders and the major revenue producers have lost 2/3 of
their net worth. Its just a matter of time before there
is a mutiny!!!
This can't be good for company
morale or shareholder value.
The fat lady has
sung and all that will be left are scraps for the
Just thought you might like to know that,
according to the October 1999 issue of EuroProperty
01 October 1999
JLL spend $1m on own
"Twelve top directors at Jones Lang LaSalle have invested
a combined $1m in the company's languishing shares.
The transactions, which were notified to the US
Securities and Exchange Commission, were carried out between
August 4 and August 30, at prices ranging from $12.875
"I am out buying our shares
because I think they're undervalued," said Christopher
Peacock, president and deputy chief executive officer of
JLL. "I am very positive about JLL; the market has
terribly over-reacted," he added.
According to the
SEC filings, Peacock put in $65,938 to acquire 5,000
shares. In total, he owns 165,947 shares in JLL, with a
current market value of $2.32m.
investors in the latest round of stock purchases include
chairman and chief executive officer Stuart Scott, who
bought in for $195,000; deputy chairman Michael Smith,
who invested $68,563; and director Clive Pickford,
who spent $69,688.
Peacock said the purchases
took place independently, in the days after the
directors became eligible to deal following the publication
of the second quarter financial results.
shares plunged by more than 50%, to $16, in July
following a profit warning issued by the company. They have
slipped further, and were trading last month at around
In line with the July profit warning, the
company reported an operating loss for the second quarter
of $2.9m, compared with a profit of $12.2m in the
same period in 1998. This profit excluded the one-off
costs of merger; when these are taken into account, the
company lost $38.5m in the second quarter. In the first
six months of the year%2
but if my memory serves me correctly. CBG and
Lasalle prior to the JLW merger talked. Both felt that
they did not have complementary markets and the merger
was killed. I don't think anything has changed in he
past two years market-wise and besides the last thing
CBG needs is a JLL, and visa versa.
M&A got JLL INTO their current problems. They've
not displayed much ability to manage thru the
complexities of a merger while
continuing to run their
day-to-day business. I doubt that many people will see
another attempt as a benefit.
JLL is in bigger trouble than people seem to be
indicating. Here is how I see it:
1 - JLL has taken-on
a large amount of debt with each acquisition. They
need to reduce these debt levels;
2 - To reduce
debt they can either use operating cashflow or do an
3 - Due to integration problems
with the merge, JLL has negative operating cashflow.
As for an equity offering, what kind of message is
management sending to the street if they issue stock at
these levels? If the stock rebounds at all, insiders
will provide enough selling pressure that the company
is not likely to get an equity offering
In short, things are going to get a lot worse before
they get better. If the integration problems persist,
cash is going to be tight & solvency could be an
Insiders are selling. Institutional
investors aren't interested. Creditors are nervious. As for
the common shareholders, . . . . . . .
It seems that JLL and CBRE have taken on the
world with their WW plans. However, real estate still
remains a local game. If you spread yourself everywhere
your service delivery suffers and your overhead rises
via integration/merger issues. These are not entities
experienced at these major acquistions or managing such a
It is amazing how you never hear
anything from the CFOs of both of these firms but just the
CEOs. The CEO put the spin on the latest situation but
little is really disclosed about the financial
The key to both firms success will be the ability to
raise margins. The JLL and Richard Ellis acquisitions
have added to an expanded network at the expense lower
margins and higher overhead. The cultural differences
will also have significant bearing on each firm.
Iniatives will not be accepted as easily. Lets hope the
cycle does not catch these firms with their pants down.
I would not be surprised to see these firms merge
Short term these two stocks are going
nowhere. The cycle-at it's peak?-could damage their grand
plans. Watch out for interest rate hikes to hurt these
firms soon. The investment sector is hurting already
and the leasing sector could be next. Last Aug/Sept
cmbs crash killed investments and slowed leasing
velocity. This is a SEll or long term hold at best. Too
many other alternatives for upside.
If you're referencing the 144's, remember that
those are "intents to sell" and have to be filed
whether or not the transaction occurs. Most of the
insiders were obviously hoping to capitalize on the 7/23
SEC expiration date and pay off margin'd notes for
their original equity. From recent conversations with
the covering brokers though, I understand that very
few have actually executed their deals. Price is too
low. It's actually below the last pre-IPO, in-house
unit price at this point.
On another note, you
may be right about heading South. This part from the
10-Q caught my eye...
"Management believes that
in order to meet our future capital and liquidity
requirements, it will be necessary to renegotiate our existing
credit facilities. Based on current operating plans,
cash generated from operations is anticipated to be
very strong for the remainder of 1999. However,
permanent financing needs to be obtained for the
significant disbursements related to opportunities generated
from the merger with JLW and acquisition of Compass.
These disbursements include merger and integration
costs, one-time capital expenditures to establish a
global platform, and the funding of a world wide
I also noted JLL had planned an
additional equity offering, now canned due to the low price.
So, the question has to get asked...
they suspect the problems? I can't see ANY way that
this only came up in the "mid-year review".
If you look at this company's insider chart,
there are no buyers, only sellers. If this is such a
good deal, I think that one of the insider directors
would start buying the stock. If there own senior
employees will not buy BIG at this low price level I guess
they believe the stock is going lower!