Spekulatius:
None would appreciate reading the off-the-cuff cynical opening statement of your remarks. Otherwise, you may just go on one's "ignore" list.
I think MLS is worthy of serious investment consideration.
Here is a sensible assesmemt of the current state of affairs from Morningstar.
"Analyst Note 08-22-2006
Mills Corp. MLS is handing over its Meadowlands Xanadu project to Colony Capital, an opportunistic private real-estate-related firm. Mills will issue Colony (and its partners in the project) 4.5 million common shares as well as dole over its $480 million equity investment in the project, which will become subordinated and could likely prove worthless. While Mills may have the chance to recoup some of its investment upon undisclosed financial transactions (most likely a permanent loan being placed on Xanadu), we have decided to write off the investment as well as include the cost associated with issuing additional common shares in our fair value estimate. We had previously written down Mills' investment in the Xanadu project, but since the cost associated with unloading the project and all future funding obligations exceeded our expectations, we are inclined to reduce our fair value estimate by an additional $6 per share. In addition, we are also electing to incorporate into our fair value estimate the potential costs associated with a possible legal liability related to previous aggressive accounting practices, as opposed to capturing the potential liability in our margin of safety. As a result, we are reducing our fair value estimate to $39 per share from $46 and do not foresee any further reductions in our fair value considering that nearly all of the value associated with the company's development pipeline has been removed. Without the Meadowlands Xanadu project, Mills exploration of strategic alternatives seems increasingly likely to speed along rapidly once the company's financials are produced in September.
Thesis 08-22-2006
After cruising along as one of the nation's top developers for 10 years, a series of jolts has forced Mills Corp. to seek out strategic alternatives. While this no longer seems like an opportunity to invest alongside a management team that will compound value for shareholders over a long period of time, we still believe the company's assets offer tremendous value."
I believe that MLS will overcome its temporary set back and misunderstanidng by the investment community.
pcyhuang |
