2800 N PINE ISLAND ROAD 102
This property was bank owned by BankAtlantic, the amount of the loan to the borrower in 2007 was $60,000. On Jan 2012, the borrower still owed all $60,000. The judgement for the property was for $66,119. This was to cover court fee's, additional costs, ect. In Feb 2012, no good bids so BankAtlantic bought it back at auction for $22,400. In June 2012 BankAtlantic was trying to sell it for $18,900. For a total loss of $50,719. (...and that's if they were to get $18,900, which is unlikely.)
This is for a low cost condo, imagine the loss on a house, imagine the loss on an expensive property.
"LOL-yep, now it's about cash flow."-rahraw. (and centurianguy26 has said the same about cash flow.)
It's funny now, that in the latest BBX 10-Q out today, that BBX is saying the same thing I have about near term cash flow and monetizing debt.
below from 10-Q....
"The Company’s financial condition and results of operations will be dependent in the NEAR TERM, in LARGE PART, on our ability to successfully manage and MONETIZE the assets currently held in CAM and in the Company’s existing wholly owned asset workout subsidiary and the assets in FAR which we have been engaged to service as well as on the CASH FLOW we receive based on our interest in FAR. Further, our financial condition and results of operations will be dependent in the longer term on these factors as well as our ability to successfully invest these CASH FLOWS. If the assets held in CAM and our other wholly owned asset workout subsidiary and the assets held in FAR are not monetized at or near the current book values ascribed to them, our financial condition and results of operations would be adversely affected, and our ability to successfully pursue our business goals could be adversely affected. Additionally, because a majority of these assets are nonaccrual and otherwise DO NOT GENERATE INCOME on a regular basis, we DO NOT EXPECT TO GENERATE significant REVENUE OR INCOME with respect to these assets until such time as an asset is MONETIZED through repayments or transactions involving the sale, joint venture or development of the underlying real estate. Accordingly, we expect our revenues and results of operations to vary significantly on a quarterly basis and from year to year."
I couldn't have said it better myself. ...although I tried about 40 times.
...again...What do they invest? assets? NO. cash flows? Yes.
How do they generate the cash flows? ...by monetizing the assets.
Will the assets generate significant revenue or income? No.
This is from BBX now not just from me.
"How are they going to invest?" is a question. One that you will not answer. It is a good question because BBX is the one who brings it up themselves. I don't care about the current "play".
If you guys want to "play" with a stock that is currently headed sideways or downward with positive trend lines so be it. If your "play" is long term, well history is against you.
I'm not talking about a play. ...I agree that they have no operating business. ...and the only thing they can do is wait and monetize the assets. I've been saying that the whole time too. If we have to wait for them to monetize the assets before they can further invest, that's a long time. BBX also mentioned current cash-flows in reference to this. The only thing on the books is previous cash-flows. I guess we won't know current cash-flow until the next quarterly.
If you are saying that cashflow isn't important because there will be none, fine. If you are saying that future investment isn't important because there will be none, fine. I never said that the current play was about cash flow. I only said that the current cash flow is more important right now than their current assets.
...and I think we all know that BBX isn't just going to gift money back to shareholders. They have stated interest in investing and I'm sure that is what they will use any money for.
he doesn't understand at all what this current play is about or what they are doing or really anything for that matter
I love hearing him say " how are they going to invest" LOL that what gets me everytime
This play is not about current cash flow...they have no operating business, and from what I last read, they are going to be leasing a small amount of office space from BB&T. Their business in the near term will be turn work out these loans as efficiently as possible. I would prefer that they return the cash generated from asset liquidations/sales to shareholders, but I doubt they will, which is one explanation for the stock's big discount to book value. The guy running the show is the same guy that just lost his bank...