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.
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.
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.
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.
Wish it were so but. AEON will end up with 90% of the company in 4 years. If it is valued at $250MM in 4 years on $25MM of EBITDA, 10% of that is $25MM. That is the market value of ADAT today so there would be no return to current shareholders. They are just buying the NOL but I think the did not die diligence on that. The NOL is lost when 51% of the company changes hands. I think these operators are also little iffy. Where did the CEO and his top guy go to school. No disclosure of that. Maybe Hard Knocks U.
I concur. It is rotten business model. You would think MGT would push back on HPT and Portnoy who is on the Board. Their income is being penalized. The minimum lease cost reimbursement limits the downside to lease payments and takes away from the upside with profit participation. Could not be much worse deal.
In the 4Q rent to Portnoy went up 8% and up 11% for 2015 over 2014. EBITDA falls 70% and rents increase. Barry Portnoy is sucking cash out of our company with glee as we lose money. In Q4 the company's debt covenants were triggered and they are in technical default. This looks like a house of cards. They cannot make money but keep buying more properties. This can only end one way. Bankruptcy.
The can't make money with falling fuel prices or rising prices. The are supposed to lag fuel price declines with falling fuel wholesale prices. Whoops we forgot about that. Gross margins down in non-fuel also exactly the opposite of the business plan. Their Portnoy connection again siphons off assets of $100mm at less that good terms. They are being charged 3x the market rate for rent as opposed to long term debt costs. We could keep that cash flow that is given away to HPT. This is the worlds worse management. The stock will be at $5 soon.
Sentiment: Strong Sell
Interest costs will be 50% higher which again violates covenants. $1.9B of interest will go to $2.6B and coverage is only 2.3x EBITDA. That may trigger another default. Paying back debt with asset sales means the cannot service debt principal. House of cards collapses.
The hospital sends you a bill for surgery and collects it when you use their services without insurance. AMC writes off 40% of receivables. Obama care will solve a lot of these issues and with compliance can double AMC earnings. At 7.3 x EBITDA, AMC will be bought by private equity, It has never been cheaper. PHII air service is also very cheap.
Sentiment: Strong Buy
It is failing in marketing. TV ads are not enough. Every drug they have has a competitor. The big hedge fund holders cannot buy more as the are tapped out and already have huge positions. ----death spiral.