Recent

% | $
Quotes you view appear here for quick access.

Sun Communities Inc. Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • garfroggy garfroggy May 1, 2007 2:29 PM Flag

    Proxy arrived

    the company loaned the ceo money in 1995 to buy stock 400,000 shares. he pays libor + 175 basis pts. Says on page 23 of proxy.

    This is the same bs Worldcom did with Ebbers as did Conseco. Loan money to buy stock.
    The loan is for $9 million now and was extended in 2002. The first 1/3 of the loan is payable dec 2008. Lets see if he starts paying up. The shareholders do not want to fund exec gambling habits of buying stock. let him buy his own stock with his own money. It should be paid back.

    Also see the company had to writedown $18 miilon worth or origen value. They paid i believe $50 mil for the investment that is worth less today. who takes the losses? reit holders again while execs like president get paid total pay of over $1.8 million. one of the worse performing reit stocks.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • "Also see the company had to writedown $18 miilon worth or origen value. They paid i believe $50 mil for the investment that is worth less today. who takes the losses?"


      By the way, i don't know anything about the origen deal, but it sounds like one of those scams where the origen owners were probably management and sold the company to themselves to make a little extra money on top of their millions. Am I close?

      I think that's also the deal that got the SEC investigating, wasn't it?

    • "the company loaned the ceo money in 1995 to buy stock 400,000 shares. he pays libor + 175 basis pts. Says on page 23 of proxy."



      Well, the 1 year LIBOR rate is 5.3%. So he's paying 7.05% on his $9 million (assuming it's tied to the 1 year rate and not a lower LIBOR rate).

      So, he pays $634,500 in interest per year.

      With the money he got 400,000 shares of this company. He get $2.52/share in dividends = $1,008,000 in dividends per year (at the current payout rate).

      So, he nets $373,500.00 simply on this stupid loan that he authorized to loan to himself from the shareholders!! Damn, that is a crooked deal. How do they get away with this crap?

      In addition, he bought shares in 1995 at $22.50/share. So even with the recent drop in price, he could realize an $8/share gain on this stock, which amounts to an additional $3.2 million in gains!!! On money that he borrowed from shareholders!!

      This is downright criminal....meanwhile, good folk in Flint are getting screwed. Where is Michael Moore when you need him?

 
SUI
71.64+0.32(+0.45%)May 6 4:02 PMEDT