There are numbers and there are numbers that are different numbers...
Here is what Stockett states as fact at:
uscement.com
"The 40 Pullman Sleeper train cars have been used for the past 20 years as a hotel in Pennsylvania. They have
been purchased for $3.2 million and are currently being refurbished at a cost of several million more and transformed into fantasy rooms themed to the themes of the major participating Las Vegas Hotel/Casinos. The trains were built circa-1930 and many have been beautifully restored to bring back the golden age of trains."
But the initial (and make note of that particular word) appraisal, put out by Stockett with great fanfare in last month's press release states that the cars as-is, where-is are worth only $560,000!
(http://www.uscement.com/apprais.html)
"FAIR MARKET VALUE IN CONTINUED USE:
As - is, where - is in Wilkes-Barre, PA each $ 14,000 (40 = $560,000). Upon refurbishment and relocation to Las Vegas, NV each $ 160,000 (40 = $6,400,000 - Cost To Refurbish and Relocate to L.V. - $3,000,000)"
How is it that on one page he states that they were purchased for $3.2 million for all 40 Pullman cars and that they are being refurbished for "several million more"?
Something isn't quite right here - they had a value of only $560,000 but SNCG acquired them for $3.2 million? Is it possible that Larry personally bought them (via his Primm Valley Transit Authority) for the $560,000 and then "vended" them to Sinclare for a 550% immediate gain?
And how about that Market Value gain? Appraisers say it'll cost $3 mill to refurbish after the acquisition value of $560,000 but when completed (total cost $3,560,000) they'll be "worth" $6,000,000, a number Larry crows about in the Press Release? Merely fixing them up will add 70% to their value above their actual cost!
Then there's the matter of time, that is, what's happening when:
In July Stockett said the railcars "ARE CURRENTLY being refurbished (see uscement.com
for millions but in the 9/20 press release regarding the $6,400,000 valuation the appraiser shows an as-is, where-is value of just $560,000 and when they are refurbished they'll be worth the $6.4 million.
Yet in the "midnight train" puffery Stockett indicates, months before the appraisal is released, that "The trains were built circa-1930 and many have been beautifully restored to bring back the golden age of trains."
This is confusing to say the least. Add to that Stockett's posting on Raging Bull that states the cars are NOW being moved for refurbishment; this was confirmed by the person who had photographed the same cars 5 years ago.
Lots of anomalies here - let's see if Stockett finds a way to explain them via a post here or in the Raging Bull.
Dee Jay
|
