Yep. The only real issue I have is that he gives no additional value to BBX's real estate holdings beyond book value although I understand he is trying to be conservative. Clearly they are worth quite a bit more than that though. He also didn't place a value on the candy business or Renin. So while you can make the case that BFCF is more valuable it's probably not as big a gap as he states. If another merger is announced then BFCF will still probably have to give a similar exchange rate unless both stocks increase significantly.
Correction. He won the battle, but we WILL win the war. No use having the stock run while the buyback is in place. I think most of us aren't planning to sell until the conversion announcement or later, so having IMOS buy back shares higher doesn't do anything for us. Chances are the stock will shoot back up above 23 next week anyway.
This stock will give you agita, that's for sure. I did buy a decent amount on the dip, but was really getting at my wits end. If the article proved anything it's that BBX and BFCF get pretty much zero coverage or attention. Even the big selloff on BBX was only a few million dollars worth of shares and my main belief is that a lot of the people who were selling don't understand that the fines will be minimal. I sold some of the BBX I bought on the dip and I also swapped some BBX for BFCF when the stocks came close to parity based on the (former) merger price. Hopefully that will balance out some of the mood swings. I still believe that a merger will happen. It just looks like it's more likely at best a late 2015 thing or a 2016 thing now.
The article points out what we all know. BBX without Bluegreen is probably worth around the current market cap. When you add in Bluegreen which is throwing off $30 million a year to BBX (plus some NOL's) the price is ludicrous. He'll probably come up with a valuation for BFCF of closer to $750M based on the value he's placing on BG.
I was trying to compute it by saying if they have 321 apartments at an average of $1500/month that would work out to about $5.8M/yr in rent. I was assuming maybe a 20% profit margin which would be like $1.2M so 15% of that is $173k. So I guess that makes sense.
Anyone have an idea of what this might work out to? The land is paid for so that's good, but not sure what it costs to build an apartment complex of this size. I'm assuming distributions are lower until loans are paid back.
Okay I found it. BBX entitled to 13% of distributions until a 15% Internal Rate of Return is achieved. 9.75% thereafter.
Looks like apartments range from about $1200 - $2100. Does anyone remember what the profit sharing split is between BBX and Altman?
"FT. LAUDERDALE, FL -- (Marketwired) -- 12/18/14 -- Ft. Lauderdale, Florida-based BBX Capital Real Estate, a division of BBX Capital (BBX) is pleased to announce that the first building of apartment homes at Altis at Kendall Square located on West Kendall Drive in Miami-Dade County (16950 SW 93 St) received its certificate of occupancy and the first residents have moved in.
In March 2013, BBX Capital sold land that was previously part of its BankAtlantic legacy foreclosed real estate portfolio to a joint venture sponsored by The Altman Companies, a multi-family developer, for net proceeds of $8.0 million. BBX Capital then invested $1.3 million of cash in the joint venture as part of the investor group. Lenders for the Development are TD Bank and Monogram Residential Trust (formerly Behringer Harvard (BHOR)). "
Interesting possibility. I don't think Levan and Abdo are looking to invest more of their own capital to buy the company, especially at the premium most investors would demand. If a PE company gets involved they would probably demand a controlling interest, but they would probably let Levan remain as CEO. Of course I don't think anything is going to happen until the judge rules and all the appeals are complete.
The rules of a buyback make it hard to actually increase trading volume if no one is home, but hopefully they told their broker to take every ask that they are allowed to. Unless management has a cooling off from the cooling off period :-). 8150 has been holding up quite well. I think everyone should write to management in January after the ThaiLin vote is complete and tell them to announce the IMOS conversion plan post haste. I don't see any reason to delay it at that point.
I doubt Jarett Levan will become CEO. I'd never count anything out, but consider that unlikely. Whoever they hire he could pretty much control their actions anyway if he retains the majority of the company. There is always the possibility of another outcome like a sale, but I think Levan would have a hard time letting go. Who knows.
Some of the selling happens because people are impatient and don't want to wait it out. Others just probably have no concept of what the verdict means and don't understand that the fine will be minimal. It doesn't help that the market seems to be in a bit of a panic now either. I do know that while a lot of other stocks out there are over valued or fully valued, BBX is very undervalued so I think I'd rather hold on to that.
•Manner of purchase: The issuer or affiliate must purchase all shares from a single broker or deal during a single day.
•Timing: An issuer with an average trading volume less than $1 million per day or a public float value below $150 million is unable to trade within the last 30 minutes of trading. Companies with higher average-trading-volume or public float value can trade up until the last 10 minutes.
•Price: The issuer must repurchase at a price that does not exceed the highest independent bid or the last transaction price quoted.
•Volume: The issuer can't purchase more than 25% of the average daily volume.