Losing the NOL with 51% change of ownership is fact.
The company did not respond on the educational background of principals.
Make a case that it is worth more than todays price.
Their company is based on testing for genetic disease. That has been dismissed by most accredited sources as not very efficacious.
It is a patent troll. I asked the CEO on my company visit and he said these trolls are the new parasites. A troll is an attorney who is looking to get paid off. Mitek's patents on MySnap are the most important. Nobody can displace them with that technology.
Here is how it is going "RMII instituted negotiations with Mitek, but Mitek refused to mediate and refused to participate in settlement discussions." RMII is a parasite and Mitek will not consider paying them anything. RMII is a Florida lawyer who acquired the patent in question from third party. The SA guy is just trying to rattle the weak holders.
ClubCorp owns thousands of building lots at its golf courses. Retirees want a community to join upon retirement and golf is just the theme. Demographics are very favorable for growth for several years. In most cases, MYCC owns the golf course, club house and controls development. At one club they agreed to upgrade the course in exchange for 9 holes of golf. There will be new houses built. The course will still have 27 holes of golf all newly renovated.
Probably about liquidated. That is the trouble with stock having 70% institutional ownership. They act like a herd. Some broker tells all of them things are weak and they sell. They all act together falling all over themselves getting the last 1/8th . So far, we have had 25% of the float turned over to new holders. We are close to the bottom. RUBI is now becoming a value play at 8.4x EBITDA and 14x earnings for 2017. Too much upside to sell. I think I will add right here at $14.30
Sentiment: Strong Buy
I wanted to buy this but--
This is perhaps the riskiest REIT in the universe. They are massively over leveraged. The preferred shares must be counted as quasi debt as they are senior to the common in both dividends and liquidation and are redeemable. If you count the preferred (looks like $438MM) as debt and $735MM of funded debt, they have over $1.2B senior to the common. The total asset are only $1.3B. The lenders consider the preferred as equity so management says the debt equity ratio is just 60%. The real debt to common ration is more like 92%.
In addition, there is massive dilution from all the warrants issued with the preferred--over 50% dilution plus any stock options. Add on the shelf registration for common. The dividend increases are a ridiculous attempt to get the stock price up.
The portfolio is a mix of weird assets. Student housing is about the most risky of apartments. Universities tend to build their own housing with 3% municipal bonds and undercut rents. I know about this as I am an owner of a student apartment. In addition, most of the apartments are new and purchased recently at very high prices. Why do they have a loan portfolio of over $300 Million? I think I know the reason.
The management Company, Preferred Apartment properties, LLC is controlled by the executives of the REIT. Your CEO is the manager. Last year APTS paid them $14million in fees from everything from fees on asset purchases to fees on all assets, property management and G&A fees. That is up from $8.7MM in 2014. These fees are in addition to $5.9MM in other expenses in 2015 that they incurred and charged to the company. They even charged $800,000 for raising capital. To add insult, the were also issued $2.36MM in equity compensation. This is like the Portnoys who have ravaged Government Properties, Travel Centers of America, and Select Income REIT. Sam Zell threw them out of Commonwealth. These guys appear to be following that same model.
Sentiment: Strong Sell
Out of money, cash flow negative, negative current ratio, poor management, no growth---goddbye
Sentiment: Strong Sell
$1.95B of cash flow. 3.9x EBITDA. Private equity will scoop it up. Even if they do not, GAP is so debt light it can buy back the 20% of the float each year and keep the dividend. It is still very profitable--just not growing. Cash is king.
Sentiment: Strong Buy
Worse than I thought. Suggest $33 as Nordy's has no plan and guidance is just awful. Amazon is sucking traffic out of the mall. JWN online is doing poorly according to MGT. With no good plan, they are left with discounting and that is killing margins.
The stock purchase plan looks foolhardy now. How could they screw this up.
even if pretax is down to $1B from $1.6B, Ebitda is $1.6B. The stock is 4.5x EBITDA. PE firms will buy it, fix it, and flip it. The dividend is safe and the have plenty of money to buy back shares.
Suggest you buy GPS. Even if EPS down 30%, they still have EBITDA of $1.5B. Dividend is safe and yield is 5.3%. The are buying in 10% stock each year. The have better BS than Nordys. Stock at low right now at $17.45 GPS will be taken out by PE this year.