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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (27189)	7/1/2007 12:59:06 PM
From: gcrispin	Read Replies (1) \| Respond to of 78525

At the last CC, the new--and now former--CEO said that if he couldn't complete his plan for the company, he would leave. Well, it appears that Frank Stronach, the founder, wasn't willing to disassemble his empire. So much for asset sales to pay down debt.

To: Madharry who wrote (27189)	9/15/2007 9:33:43 AM
From: gcrispin	Respond to of 78525

I don't know if you read the most recent MECA PR or listen to the most recent CC, but it appears that they are serious about eliminating their debt. The Q&A is particularly interesting as Frank bares his soul with an uncommon frankness, no pun intended. Basically, their backs were to the wall and they were running out of money, so he had no choice but to dismantle the "empire". No one really knows how much they will raise with the asset sales and a future rights offering could be waiting in the wings. The share price responded to the news, but there are many questions about the implementation of the plan, so I expect some retracement. Golden Gate, which is a very valuable property, sounds like it is off-limits for now. Family money is also going into the reorganization. So I'm intrigued by the plan and will probably put in some buy orders at lower levels.

To: Madharry who wrote (27189)	9/21/2007 9:09:02 AM
From: gcrispin	Read Replies (2) \| Respond to of 78525

I decided to buy some MECA yesterday and have bids in at lower prices. This company has been a dog of a stock, but owns several valuable properties. The deciding factor for me to purchase is the fact that Frank Stronbach is investing 20 million dollars of family money at this point of the game. The price of the private placement will be average of the share price in the ten days of trading after the reorganization announcement. The twenty million investment is a good indication that the Strombach family is serious about extracting a higher value from the company. From the press release: arranging $100 million of funding to address immediate liquidity concerns and provide sufficient time to implement the plan, comprised of: (i) a $20 million private placement of MEC Class A Subordinate Voting Stock ("Class A Stock") to Fair Enterprise Limited ("Fair Enterprise"), a company that forms part of an estate planning vehicle for the family of Mr. Frank Stronach, the Chairman and Interim Chief Executive Officer of MEC; and (ii) an $80 million short-term bridge loan from a subsidiary (the "MID Lender") of MI Developments Inc. ("MID"), MEC's controlling shareholder The company is going to look at everything, except for Golden Gate Fields, which is a valuable property. maps.google.com Here is an example of a property that will go on the auction block. gazette.net