Sorry, here's a little more detail.
"Centerline Holding Company is a publicly owned investment holding firm. Through its subsidiaries, the firm operates as real estate finance and investing company. It provides capital solutions to developers and owners of properties, as well as investment products to institutional and retail investors"
Everything is rapidly deteriorating:
Income statement:
finance.yahoo.com
Balance sheet:
finance.yahoo.com
Cash flow:
finance.yahoo.com
Long term chart:
finance.yahoo.com
Class action lawsuit announced:
money.cnn.com
"The Complaint alleges that Centerline's officers and directors violated federal securities laws by issuing a series of materially false and misleading statements about Centerline's business model and financial condition, including statements concerning its portfolio of tax-exempt first mortgage bonds, which generated the majority of Centerline's revenues and supported the Company's $1.68 per share annual dividend. Defendants' statements concealed that Defendants were in the midst of structuring a sale of the Company's mortgage revenue bond portfolio to a third party. On December 28, 2007, Centerline announced that the Company had sold its $2.8 billion tax-exempt affordable housing bond portfolio to a third party and, in the process, transformed the Company's business model to a pure asset management firm. As a result of this transaction, Centerline disclosed that it would be slashing its annual dividend from $1.68 per share to only $0.60 per share. Defendants also revealed that they had entered into a related party transaction with a company owned by certain Company insiders, called The Related Companies, L.P. ("TRCLP"), whereby TRCLP agreed to provide Centerline $131 million in financing in exchange for 12.2 million shares of newly-issued convertible preferred stock that will pay Company insiders an 11% dividend. On this news, Centerline stock plummeted 25%, from the previous day's close, to a close of $7.70 per share on December 28, 2007."
The patient looks terminal. |
