If you can not stand the heat, do not invest. this company is just a basket of assets. this is
not a real operating company. the right question is: are these assets worth more than
enterprise value. I believe the answer is a big yes and the Shekel movement could help
if it were to continue and persist until such time as assets are sold and bonds are paid.
The assets are still the same assets, the liabilities are the same. there is an issue with their stores that
represent Mango in Israel and someone else wants the license (which expires next year). I did not and do
not think that those stores were ever anything that makes sense to Elbit. if they could give the stores and
get compensated for the outstanding credit (part of the Bank Hapohalim loan to Elbit - I think to the tune
of 60M NIS) they will be better off.
When assets are being marked to market every quarter, you have noise. During the debt
restructuring Plaza marked things down like crazy. real numbers will be visible only when they
sell something. until then, everything is a guess. my guess is that the asset value in what is
left will end up being much larger than the debts.
It will take awhile to get those values exposed. I do not think DK would have gone also into the
equity (backstopping the rights offering) if they did not think the value was there.
What you have is the active malls at LTV of of less than 0.65 for the bank debt (and servicing them)
and you have the rest of the assets against the bonds. those assets include India, Casa Radio,
the Belgrade project etc.
Anyway, that is what Plaza is now. I am guessing that with a few partial exits (2015 - Riga and
maybe partners into Casa Radio and Belgrade + Chennai projects finally starting), they should
be able to reduce their bond debt by close to 50% and still be exposed to those projects with less
risk and reward.
You are something else. I thought I was the only one who
says things like that with a straight face to people (when
they deserve it...).
I think this might be a repeat (or maybe finally a close) of the deal from 2013.
I believe they also sold in Romania a piece of land (probably to the competitor who will build
a power center 50 meters away from there...) for 3.5M Euro (inline with book value after a write
down in 2012).
Anyway, lets hope Plaza is on its way to more substantial raising of liquidity / reducing bond
To all it may concern: prophecy was given to the fools after the second temple was destroyed...
All that I ever said over here is that I did as much homework as I could and it looks to me that the
combined value of those assets is much higher than the enterprise value of Elbit.
Would that gap disappear tomorrow? probably not. the assets are mostly not income bearing
in nature (lands - both directly and through Plaza, hotels which are servicing their own debt
but have large value surplus and Biotech companies who are very promising, but do not have
sales yet), but the debt does cost money.
I do believe that the value gap would be eventually narrowed, but when is a matter for prophecy and
I am not qualified for that subject.
I wish you all good luck and for the company to be able to gain liquidity sooner than later through
asset sales (hopefully at decent prices...).
Here is something to think about: usually in a case of debt restructuring (with a large loss for equity) there
will be a lot of selling pressure at the end of the year. in this case I think that during the debt conversion
(which was a taxable event in Israel) the tax loss or benefits were recognized, so the only thing that could
affect would be window dressing and some former bond holder who have not out yet got out.
In a sense I wish that the holding in Plaza would go to 40+%. Elbit needs to stop the silly consolidation of
the financial reports. why should it take two hours to figure out what is actually going on in Elbit?
Plaza needs to have a dominant activist investor in its equity. that is not what Elbit is. they need to try and
market their larger opportunities (mostly Casa radio and Belgrad) to outside large investors, remain with
a minority and pay part of their bonds. doing that would get cheaper financing for the projects.
Casa Radio has (so far) 130M Euros in it (for 75%). even if you go down to 25% and get the project moving,
you could probably get enough in cash (for the part of the ownership) to pay quite a bit of the bonds.
Finally the shekel is starting to move down. lets hope it continues and become a (very logical) trend.
I hope DK becomes the activist in Plaza that I believe is needed.
Than give back the money and keep it empty. either way,
unless a very compelling opportunity emerges by the end of
the year, the money should be given back.
In such a case the corporation still exist and so is most of the
money (which does belong to the shareholders and not to
If the balance sheet would have meant anything, the company would not have been where it is...
The assets have the same value as they did a few days ago (with the exception of gamida cell
and insightec who actually are worth more than a few weeks ago - they are now fully funded).
Plaza is a company with assets which are not liquid right now. any value is as good as any other
right now. if the Romania economy continues to do ok, the assets there (which are a key for
plaza) will command a better price.
I will try. the news are not frequent and it is like watching paint dry at times, but it is important to not lose
sight of the big picture. good luck to elbit and to us, its shareholders.
whoever you are, if you studied law I hope you go and demand
a refund of your tuition. half the truth is worse than a lie.
I do not know if you actually think this way. I hope you do not,
because I am actually scarred for you.
nowhere in that law does it say that the assets of the
corporation must stay in the corporation. a corporation can
give a dividend and stay empty. if you really think like that,
you have an issue. $2.5M are left out of tens of millions. does
that sound like a success story to you?
If they found a case of a mine almost fully funded and one last
gasp of money would get it done and operating, the company
needs to bring it to shareholders to approve quickly.
all other cases, the company should just give back the money.
I am weird. I believe in what I believe to have value. summing up the assets (deducting
the assets' debts against them) gives you value higher than the current Enterprise
value (about $350M). I am also stubborn... also, in the past I was rewarded at times for
that weirdness (more often than not, but not always...).
I have to say that you are confusing the virtual entity called a company and the
very real owner's hard earned money. The fiduciary duty is towards the
shareholders and their investment. the corporation is a tool to manage that
investment. I hope (yet again) that you are not serious in the above statement.
If the investment is better served by dissolving the corporation, than your duty
as an officer is to do so. as far as the option of the shareholder - that is the
worst ever attitude. the company is trading at less than half of cash on hand
(not to mention how much accumulated losses probably exist...) and you think
Wrong, you are plain wrong. I have been on the side of Brian most of the time,
but when something is over, it is over. its sad, but the money in the company
belongs and should return to the shareholders. the employees should be
compensated for trying, but it did not work and it is time to move on.
Let me explain something to you: this is not some kind of a momentum play. this is a value play.
There are no concrete things to generate interest. there is a list of catalysts that should happen through
time. stop looking at the stock every single day and just go on in your normal life.
If Gamida cell's phase 1/2 results are as expected in 2015, Elbit Med. Tech. will have the money to pay back
the $35M shareholder's loan to Elbit Imaging. if the results of Radisson Blu are good, they should be
able to sell it and repay a lot of their debt (Bank Hapohalim first, then some of the bonds). same thing goes
for Radisson Blu Antwerp and to the Tiberius land rights.
Upside could be next year from Insightec (if their results are as good as I hope they are).
Upside could be from Chennai or from Plaza Centers (maybe finding a partner for Casa Radio).
The valuation is low, but there is no law in nature that states that low valuations quickly correct. that is
the bottom line - regardless of how me or you feel about it.
Good luck to the company.
I hope you are being sarcastic. with $3M of cash you do not get far. especially when your overhead
is probably $0.5M per year (or more).
This is wrong to let the company continue like this. very morally wrong.
Approval is much further than 8 month away.
look up clinical trials NCT01827904 and you will find that their 72 patients
trial is still recruiting. it will finish on may 2015 and will probably publish its
results at the end of 2015. starting on 2013, they should have 2 year data on
more than a few of their patients.
Good luck to them. this method could revolutionize the surgery industry...
It was approved for one indication at the time. now it is approved for bone cancer as well, but the
opportunity is with the brain indications. go and look for the phase 3 trials they have. that would
explain where a lot of the money went to. Elbit owns indirectly about 33% of it, but over the
years probably put into it over $150M. GE put another over $40M and now York will put $50M+.
Lets hope for the best. if the phase 3 essential tremors goes as well as it should and the
curiosity regarding tumor surgery expands (in Zurich they already done it), Insightec will be fine.
Last year they sold only $20M and lost close to $30M (I assume those multiple clinical trials
cost quite a bit).