And you continue to ignore the fact that no matter how much it sells for, it will make profitability that much harder,
Ok, the real estate, when sold, will give them another year. However, its future rents are going to make breaking even that much harder. Also, the cap rate isn't going to be great given that PSUN might not be around to continue to pay rents for the long term.
Since when does a mall based chain "own" their real estate ?
They might own fixtures & equipment in the stores which wouldn't be worth much to anyone as collateral.
And even if they were able to sell it, they would have to pay to lease it meaning higher rents.
The company has a high likelihood of going belly up because of their debt and the fact that they have a negative book value.
Do you REALLY think I am here because I am shorting a 35 cent stock ?
You know very little about investing.
PSUN is a very risky stock. And if you cant see that, you are blind.
$100+ million in debt, no book value and $25 million market cap.
Dilutive financing is the only thing that will keep them alive.
Its not a scam, its a potential bankruptcy. Or, at the very least, massive dilution just to kick the can down the road another year or two.
Heavy dilution & a reverse split are probable if they can avoid bankruptcy.
The problem is, their rents would increase making it even harder to achieve profitability.
Don't confuse common sense with a short. Im not short anything. Ive been around & watched a number of retailers fall by the wayside.
You might not just be the smartest guy on the internet.
I suspect I have socks older than you.
Your youthful optimism may be misplaced here. At the very least you are dramatically underestimating the risks here.
Golden Gate isn't worried about their $1.75 options. They know they will expire worthless in all likelihood.
And even then, it might only buy them another year.
I used to trade this way back when, And GADZ too.
Now, I think the these stores just aren't viable. Kids can get fashion with the click of a mouse. They don't need old fashioned brick & motor retail stores.
Although Im considering buying TUES on a pullback. Difference is they are profitable and have a strong balance sheet. PSUN is dying.
3.25M Common Stock Offering at $4.75/Share.
Wow, just 3 months ago. No wonder so many are dumping for the tax loss.
Hopefully this means they wont need to do another anytime soon.
Of course the brokerages have egg all over their face for pushing it.
This is not my typical value stock but I bought in late 2012 at $2.27 and sold in early 2014 at $4.97-5.49. So hopefully I can get at least 50-60%. I had placed my $2.51 buy order just in case it happened to fall. And it did. I hadn't even looked at it in months except to maybe renew the buy order. I do that with a dozen or so stocks. Put in orders at very low priced to catch shares in case they tank.
When & what price was the secondary ?
I sold out in early 2014 at $5.49 and haven't been following it closely since then.
Would like and expect to see some insider buying at current prices.
Maybe Becker Drapkin will buy more.
Hallmark reported net income of $18.4 million, or $0.95 per diluted share, compared to $9.7 million, or $0.50 per diluted share, reported for the same period the prior year.
We should trade higher.... I would think.
Not sure why book value actually went down a penny. Perhaps dilution from a higher share price ?
That's a typo. Becker spent $547,111 on 101,900 shares.
11/4/15 - 6:15:13 pm
BECKER STEVEN R
11/4/15 - 4:50:06 pm
On November 5, 2015, Michael L. Ashner, the Chairman and Chief Executive Officer of Winthrop Realty Trust (the “Trust”), stated on the Trust’s earnings call that the value attributable to the Trust’s equity investment in its 701 Seventh Avenue, New York, New York asset was approximately $160 million. The actual equity value attributable to this asset for financial statement purposes is approximately $169 million. This estimate of value is based on an estimated property value of $1.17 billion. Under the operating agreement for this asset, the Trust will be entitled to 15.28% of any additional property value in excess of $1.182 billion
=$1.1 billion project value. FUR gets 15.5% of anything over 1.15 billion. 8k expected soon with more detail.
And it sounds like they are going to possibly buy stock back....but they have said that before and haven't yet.
I asked that before the call and they wouldn't answer direct so I appreciate them working the answer into the call.
I should probably buy more here at $14.50ish. But its already my largest position.
declared a liquidating distribution of $1.00 per common share of beneficial interest payable in cash on December 3, 2015 to common shareholders of record on November 25, 2015.
The estimated net assets in liquidation at September 30, 2015 would result in liquidating distributions of approximately $15.17 per common share. This estimate of future liquidating distributions includes projections of costs and expenses to be incurred during the period required to complete the plan of liquidation. .
This current estimate represents a decrease in liquidating distributions of $0.06 per common share below the Company’s estimate at June 30, 2015. The decrease is primarily the result of a decrease in the liquidation value for the Company’s luxury residential property in Houston, Texas due to recent downturns in the Houston market and a reduction in estimated receipts from its mixed use facility in Churchill, Pennsylvania due to a shorter expected hold period. These decreases were partially offset by an increase in estimated receipts from the Company’s warehouse facility in Jacksonville, Florida due to an extension of the anticipated holding period of the property. In addition, the liquidation value of the Company’s investments in the Sullivan Center and Concord Debt Holdings were increased slightly. No change has been made to the valuation of the Company’s investment in 701 Times Square.