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Rexahn Pharmaceuticals, Inc. Message Board

ofir_menkes 18 posts  |  Last Activity: Nov 24, 2015 2:16 PM Member since: Jul 27, 2008
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  • Reply to

    New Here

    by joejoepepitone May 21, 2015 2:47 PM
    ofir_menkes ofir_menkes Jun 2, 2015 10:37 AM Flag

    One can justify almost almost any number. one of the beauties
    of modern accounting...
    I believe the value of Elbit over time will be much more than
    $3 per share. this is an investment company in assets that is
    much closer to a fund than to an operating company. you
    should be looking at its individual assets and their performance,
    not at the whole.

  • Reply to

    New Here

    by joejoepepitone May 21, 2015 2:47 PM
    ofir_menkes ofir_menkes Jun 2, 2015 10:48 AM Flag

    Blu, couple of things:
    The Bucharest complex carries over 60M Euros of debt. the
    64M is the equity, so the valuation is ~130M.
    When you look at net income of an asset that is levaraged and
    not optimized yet, you are better off looking at the EBITDA.
    The EBITDA today is over 10M Euro. it will grow once the
    additional 210 rooms are available and another 1.5M of capex
    is put into the hotel this year (other than the conversion).
    The additional appreciation will not be huge to the total price
    tag, but will be all equity. as the Romanian economy becomes
    better (and especially among the Bucharest area), the casino
    there should do better an so do the two hotels and the other
    apartments. if they could sell in a year for over the current
    valuation, they could payoff the Bank debt with leftover.
    Their bank debt is in Dollars, so selling once the Euro is a bit
    stronger will make a lot of sense. keep in mind that only 77%
    belongs to Elbit.
    Good luck to the company and to us.

  • Reply to

    New Here

    by joejoepepitone May 21, 2015 2:47 PM
    ofir_menkes ofir_menkes Jun 2, 2015 12:09 PM Flag

    This is a problematic piece of land with large potential. its
    development has been resisted by greens, but it is a large
    piece of land that is currently designated for a very high end
    boutique hotel (it was designated before for 800 rooms, but
    now only around 200 ultra high end).
    I do not believe any new hotels were developed in the area for
    the last quite a few years. some were renovated, but not new
    ones and not very high end.
    I think the cost was 50M NIS and the prices of land in Israel
    since 2008 have gone up over 200% for residential. I do not
    know the pricing for hotel parcels.
    Anyway, I hope that somewhat helps.

  • Reply to

    The (only) positive point

    by dubi_calmy Jun 3, 2015 9:18 AM
    ofir_menkes ofir_menkes Jun 3, 2015 5:55 PM Flag

    Novartis seems to not want to control other companies. they want to share profits and finance research,
    but not to straight up buyout the company. it sounds like a strategic thing.
    Gamida Cell has a lot of the $35M Novartis injected, so they should be able to progress for awhile, but the
    risk is higher...

  • Reply to

    If doesn't close above 11.20 next week

    by nyxout Jun 6, 2015 3:03 AM
    ofir_menkes ofir_menkes Jun 8, 2015 5:19 PM Flag

    Debt grows as you grow and have to hold more inventory and do more shipping and
    build infrastructure. the question is if the cashflow is there to pay down the debt over
    time. I think it is there.

  • Reply to

    Novartis will Pay $ 142 M Breakup Fee

    by kodakbond Jun 9, 2015 12:35 PM
    ofir_menkes ofir_menkes Jun 9, 2015 4:24 PM Flag

    Please stop. that was an option, so there will be no breakup. if the transaction would have taken place,
    the amount of 142M NIS would have been paid by Elbit Medical to Elbit Imaging in order to pay back the
    existing shareholder's loans.
    Gamida cell still have money to run its trials (whatever is left from Novartis's $35M) and Novartis said
    they are looking to continue collaborating with Gamida Cell (AKA finance for product development).
    They are interested in Nicord and the technology other applications, but they have no desire to own
    Gamida Cell outright. for better or worse, that is where we are.

  • Reply to

    menkes or anybody

    by starteam003 Jun 11, 2015 8:22 AM
    ofir_menkes ofir_menkes Jun 11, 2015 11:11 AM Flag

    No, there was a 21M Euro mortgage. they get 27M Euro, from which they pay 5M towards their bank debt
    and they pay 15M Euro towards buying the rest of the Bucharest complex.
    They have a net increase of 7M in their cash and they will use it for general corporate purposes (
    including interest payments).

  • Reply to

    menkes or anybody

    by starteam003 Jun 11, 2015 8:22 AM
    ofir_menkes ofir_menkes Jun 12, 2015 11:27 AM Flag

    A lot of rooms (was 424 and will be at q3 424 + 210) plus some more apartments.
    The other revenues (non boarding revenues) are high and with more rooms at higher
    class level, they can increase revenues. revenues have been stagnant for two years.
    Romania's economy is the fastest growing in Europe and it is growing on real products
    and not financial engineering, which is good.
    I think that so far this year, tourist numbers have gone up by more than 10% over last
    year. that should help the results as well.
    With increased EBITDA (currently 10M Euro) the value should go up and the hotel
    complex should be able to pay the 6M expense for the upgrade while hardly increasing
    its debt.
    That has to count for something...

  • ofir_menkes ofir_menkes Jun 19, 2015 10:48 AM Flag

    It does says a lot, but it should:
    1. Describe the Romania hotel complex better (the largest asset now of the company).
    They probably should provide guidance of what they believe the EBITDA running rate should look like
    next year (based on the fact that they will finally have 210 rooms at 4 starts level which are not active
    today - and have not been for a while now). they need to explain what parts of the complex need to
    still be renovated after this and what is the timeline for that.
    right now:
    424 rooms at Radisson Blu - 5 stars.
    210 rooms at Park Inn - 4 stars (?) - will become active 4q of this year. was called Center Ville and
    most reviews of its 165 apartments were not good (understatement). wonder what the renovation
    will do to the EBITDA.
    129 other rooms/apartments - trying to figure out still what is their status. are currently part of
    Center ville complex (which included 294 before).
    2. Lands in Chennai - what is the status as far as timeline for project to start and when will cashflow
    start coming out of it (as building progresses and nearing delivery).
    40% of 90 Acres are a lot of money.
    3. Lands in Bangalore - Varthur area (not sure if part of Varthur, but close enough to the lake). what is
    the timeline for Manti to build and when will cash flow start.
    50% of 108 Acres is a huge sum of money.
    4. Nothing was said about the land in Tiberius.

    Good luck to the company and to us, its stakeholders.

  • ofir_menkes ofir_menkes Jun 19, 2015 3:55 PM Flag

    Years ago Elbit Imaging owned a company called Elscint, which was one of the top
    competitors of GE medical in CT. GE purchased it, but it did not want to deal with the
    (then) young insightec, so Elbit kept it.

  • ofir_menkes ofir_menkes Jun 24, 2015 12:22 PM Flag

    You should chill out... this is a long term proposition. everything is happening slowly.
    If you noticed from the last reports, Elbit paid 15M Euro to consolidate the Radisson Complex under their
    The complex was purchased using total value of 130M Euro and hopefully would be worth more in a year.
    The value includes 65M Euro of debt.
    Another interesting thing is that an asset called Cina Plaza, which was leased to Plaza Centers for 49
    years by Elbit (starting 2007) would be returned to Elbit (for compensation to Plaza).
    This is a piece of land to be developed into 5000 sqm of retail in one of the best streets in Bucharest
    (Calea Victoriei Venue - next to some of Bucharest's most well known landmarks).
    I do not know how much the value is, but it has to be quite a bit. would help in paying debt down...

  • ofir_menkes ofir_menkes Jun 24, 2015 4:20 PM Flag

    in 4 years they will finish paying the last of their debts. whatever is left at that point will
    be pure equity. I suspect this will be quite more than today's price.
    when will the market recognize the equity value? maybe when and if they sell the
    Bucharest assets or the India lands or have Plaza much less levaraged or when they
    monetize Insightec or when they monetize Gamida cell or sell the 10 Acres by the sea
    of Galilee. all of the above could do the job.
    Simple answer - nobody knows. the market is based on emotions and fears more than
    on rational. good luck to us.

  • ofir_menkes ofir_menkes Aug 10, 2015 10:58 AM Flag

    The spp part has run its course. the $85M sale (at way inflated price) has removed a lot of the potential
    to use it as a tool to gather new funds. it was too short sighted. look at what happened to the spp
    share price since then.

  • Reply to

    bluestem ..menkes and joster..

    by starteam003 Sep 22, 2015 6:19 PM
    ofir_menkes ofir_menkes Sep 25, 2015 2:13 PM Flag

    Company is not on the verge of BK at all. the Park Inn by Radisson just opened in Bucharest a few
    days ago. with that in place, the hotel complex should be able to generate NOI of 14M Euro.
    The complex has 61M Euro debt and its value could easily exceed the book value of 140M Euro.
    on top of the equity, Elbit loaned the complex 11M Euro for the buyout (98% now belongs to Elbit).
    The PR you are seeing is for the two hedge funds in control, arguing how to manage plaza centers (45%
    owned by Elbit). DK was expecting quick returns and York, who is the largest share holder in Elbit and
    appointed the plaza manager, is not delivering so far good appreciation.
    Lets see if something positive happens here. the asset values here justify a much higher price.

  • Reply to


    by starteam003 Sep 30, 2015 5:38 PM
    ofir_menkes ofir_menkes Sep 30, 2015 6:19 PM Flag

    Plaza has 4 remaining active properties (in operation with a NOI). one of them was Liberec. this mall
    is not doing very well and its NOI is low (due to stiff competition and some mismanagement).
    One of the reasons the mall was neglected was due to the fact that the loans against it were too high
    to support. my understanding was that Plaza was responsible for the mortgage, but it seems I was
    wrong. cutting the debt against the property could allow Plaza to invest properly in it and develop it and
    would increase the equity.
    Anyway, that is good news.

  • Reply to

    Approval of Notes Buyback Programs

    by dubi_calmy Oct 12, 2015 10:59 AM
    ofir_menkes ofir_menkes Oct 12, 2015 1:45 PM Flag

    Indeed, its been cooking for a while now. they have about 140M NIS at the company level and if they close
    on the Chennai sale, that would be anothe 45M (disregarding any repayment of the Indian partner
    advancement from 2008).
    If they could just find a way to get rid of the Tiberius land, that would be great.
    Another interesting thing: last quarter they got a piece of land in Bucharest back from Plaza Centers. the
    name of it is Cina Plaza and it is a small piece of land with a building with a restaurant called Cina. it is
    almost attached to the Hilton Hotel and very close to the Radisson complex that belongs to Elbit.
    Years ago the plan was to build 5000 sqm of exclusive retail area. it would be nice if they could let Radisson
    build it and manage it. it would add value to the complex (future growth).
    Anyway, the parcel was always classified as immaterial on the Plaza books (and with no value as a
    Anyway, the company is on the right track for now (and even Plaza is getting better...).

  • Reply to

    menkes and calmy..

    by starteam003 Oct 12, 2015 3:40 PM
    ofir_menkes ofir_menkes Oct 12, 2015 5:48 PM Flag

    Buying back debt without issuing new debt means the company is reducing debt.
    That is a good thing. I do not know how long the restructuring will take in order to float value.
    I do not think that the management knows as well. they do what they can.

  • Reply to

    7 M float 24 M volumn

    by jacktrade175 Nov 24, 2015 2:07 PM
    ofir_menkes ofir_menkes Nov 24, 2015 2:16 PM Flag

    The company does not need money now and the liability is mostly finished. I doubt these are
    shorts, but if they are things will be very interesting. I would not want to be short with 24 M shares
    on a 7M shares company. I doubt it is possible. probably mostly traders in & out.

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