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

To: E_K_S who wrote (67030)	4/2/2021 12:55:29 PM
From: bruwin	Read Replies (1) \| Respond to of 78767

"An investor always looks 'Forward' and if you can buy those assets at 35% below stated BV (remember those assets not valued at Market value either) and the same assets have a upgrade path to generate 20% more FCF when their Capx improvements are completed (converting single use to multi use), Do you know what this opportunity reminds me of ?" Yes, I've heard that one before ..... sometimes it comes off, sometimes it doesn't. My preference is to first see an improvement in the company's business, REIT or no REIT, via its Quarterlies, at the very least. In other words, increasing Revenue, Improving EBITDA, Reducing Interest Expense, Improving Pretax Profit, Increasing Positive Net Income ..... or at least some positive Turnaround in most of those parameters. That should then also result in a Positive Contribution to its Balance Sheet. As things stand MAC's "Retained Income" has got more and more Negative over the last 5 years due to regular losses ...... So now it's not about "guess work" or what "Management Forecasts(?)", or "If's" and "Maybe's", it's about Factual Numbers. And when a company starts to make regular and increasing Bottom Line profits, believe it or not, its share price tends to rise. I understand that one would always like to get into a troubled stock at a "rock bottom" price to get the maximum future gain ...... but how long will that be ? and who can say for sure that it will, seeing as current indications are that it's price is moving sideways, which has been the case for the last year ? There must be other stocks that one could rather put that MAC "allowance" into that are actually showing positive price gain. Putting money into MAC now could be like "dead money" with no gain from it. Once there's a positive turnaround in MAC's fortunes, one can take that MAC "allowance", plus the gains made, and buy into MAC with far more confidence that the company is now on a more assured path to Profitability. Maybe one will lose that initial 10% to 15% rise in MAC's price, but at least the Risk will be very much reduced, going forward. Needless to say, we all have our own way to invest in stocks ....... so I wish you luck with MAC and I hope you make a profit ........

To: E_K_S who wrote (67030)	4/2/2021 2:05:18 PM
From: E_K_S	Respond to of 78767

Goldman, JPMorgan Seize Equity Stakes In The Two Largest Malls In North America J.P. Morgan Chase, Goldman Sachs and a group of real estate investors are set to take a 49% equity stake in Triple Five Group’s Mall of America (5,600,000 sq feet) and West Edmonton Mall (5,300,000 sq ft), reported Women’s Wear Daily and Bloomberg. The developer had put up 49% stakes in the two huge malls as collateral to secure a $1.2 billion construction loan for American Dream, a massive mall and entertainment center, which is located in East Rutherford, N.J, just across the river from Manhattan. This is the last thing these Banks want to own/operate so wonder who their real estate investors are? Could be Private Equity that sees a bargain opportunity. Triple Five is owned by Canada’s Ghermezian family. A representative for Triple Five said the move by lenders would not affect operations at the retail properties. All three malls have reopened with capacity restrictions after closing for months because of the pandemic. Notice that the Mall operator/owner had cross collateralized their other properties for their construction loan. If you have to provide the bank collateral for your construction loan, best to encumber individual properties in your portfolio rather than all of them. Cross-collateralization is a term used when the collateral for one loan is also used as collateral for another loan. If a person has borrowed from the same bank a home loan secured by the house, a car loan secured by the car, and so on, these assets can be used as cross-collaterals for all the loans. -------------------------------------------------------------------- Easy money and leverage get owners/operators in trouble. The thing to watch is to see where that loan money went (ie back into the properties) or 'cashed out' to investors and/or insiders as bonuses and salaries.