GFL Environmental Inc GFL

Mark to Market

[Froggy1]

Who remembers Enron? Mark to market loss on purchase contracts - $228m in 3 months. Ouch! A quarter billion dollars. Their deficit is now $2 billion. This is a number  to keep watching - for Enron it was pure balance sheet fraud. Everyone went to jail remember. Big institutional money in this company and I'm sure they know better than I do but GFL doesn't seem to be able to make money. Mark to Market valuations is a dangerous game of over estimating future profit, it will be interesting to see if GFL got rid of all the bad news in this quarter. A quarter billion dollar miscalculation! I highly doubt the value of their contracts changed by that much, it is much more likely that they massively exaggerated the value when it suited them to do so.

[Froggy1]

So I was wrong. This mark to market business is not an estimate of future customer revenue as it was with Enron. Note 12 in the annual statement explains that it is a method of funding a $1 billion loan based on share price and interest-bearing TSU . 

[DesertFox2]

"Mark-to-market accounting is a technique that measures the value of a security BASED on its current market value instead of its book value.  This can work well when trading securities, but it can be disastrous for ACTUAL business." Mark-to-market accounting can be easily manipulated .   "The principal method that was employed by ENRON 'to cook its books' was

[Froggy1]

I hope they fail, it will be fun to watch. Their mark to market losses in the last five quarters is over $600 million. They have 6 billion in debt,  5 billion in revenue and over $2 billion in cumulative deficit and most importantly seem not to be able to achieve economies of scale. Is there any reality in business today? Zombie companies roam the landscape. They keep rolling over debt at

[DesertFox2]

WOW, so much debt!  Seems the only one who is wealthy is Patrick Dovigi.  You might also want to read "ROSEN, RESPECTED INVESTOR COUNSEL, Continues its Investigation of Securities Claims Against GFL Environmental Inc.-GFL, GFLU.  (GFL possible investor lawsuit).  Wonder if any heads have rolled at TPPB?

[Froggy1]

Jane Rowe, Senior Director equity investments at Teachers was quoted in the press release saying the usual- "we believe in this company"  stuff. That doesn't mean it would be her head to roll, she would probably put the guillotine to someone below her if GFL implodes. Check out their annual report on the "Sedar" website. Sometimes I think I'm the only person who

[DesertFox2]

He sure is!  I think he came out of it with $50 Million after TPP investment.  Next day he sold his Miami Mansion for $25 Million.  Go figure.  I think you have it right about Jane Rowe.  It would be a subordinate whose head would roll.  One has to wonder what happened to DUE DILIGENCE?  Could be B C Partners championed the investment such that TPP felt due

[Froggy1]

It will be fun to watch. Don't be so sure the teachers pension made a bad decision. Late stage capitalism is very strange. Normal commonsense measures of success such as profit are not important. Commissions fees high interest charges and the entrance versus exit price seem to be the game. Eventually it all falls down. I think this thing will fall down. But I admit I'm a very poor judge of