RE:RE:Our partner is Polygon........ Undervalue: I value your posts because you include all this market info that I would never find......BUT....don't forget about King George Financial. History does not actually repreat, but it rymes.
You told me you had this former Bigshot Politician from BC that was a director and large shareholder of KGF that was there to protect your interests as a minority shareholder. How did that work out?
Ray Heung has been selling down his interests, at about $6.50 last sale. Maybe he knows more than you and I and he doesn't like what he sees? It's hard to say. You and I think $6.50 is cheap, and we are getting the land for free, but maybe not. Maybe Ray is getting lots at good prices as a quid pro quo? In exchange for selling his shares.
There is no such thing as "side bonuses" for principlas if it involves officers/directors of Madison, and is not disclosed in the SEDAR filings as "less than arm's length" or "insider transactions" or "certain transactions" .
So, who is Morningstar? Are they the entity building the homes in Silver Hills?
Undervalue, believe me..........just because the insiders own a majority of the shares of Madison does not mean that they are working hard for you and me! The public shareholders. They use the company capital to own, borrow, and develop these properties, but when it comes to sharing in the profits, then that is ANOTHER matter.
So, you think the cost basis in this 1000 acres in Mission is pretty minimal? All the more reason to figure if the out the door price to a "builder/developer" for the lot sales so far looks reasonable! Does it pass the sniff test?
And, it appears that we are selling these lots a bit at a time to some entity that is then building and selling the homes, so we don't get the benefit of a large cash sale up front, as you showed in the Minto sale in Ottawa. So the cash comes in in dribs and drabs over time.
So let me give you an example, IF you own 60% of the public co, and the public co owns 50/50 JV in the Mission land, but the land is sold to a "Morningstar" that is "affiliated: with Polygon, and Polygon owns this Morningstar 50/50, then you can see the economic effect of selling the land to this "builder" out of the JV, at a discount to FMV, to Polygon, IT's a WASH. Polygon is really in the same ecomomic position............not counting any profits on the :build" part of the deal.
BUT, lets say Grippo and his peops are the owners of the other 50% of the JV privateco with Polygon outside of this Madison Pacific Public co shell. They in fact increase their economic interest in the actual land from 30% thru the Public co., to 50% thru ownership of the other half of the Private Co. And this is not counting any "bonuses" of "profit sharing" that the principals might have negotiated. Do you see how it can be done?