Friday, October 3, 2008

Down goes Bernie! Down goes Bernie!

Sorry. I couldn't help but think of Howard Cosell this morning for some reason.

A GGP press release reports as follows:

General Growth Properties, Inc. (NYSE: GGP) today announced the appointment of Edmund Hoyt as the Company’s Chief Financial Officer on an interim basis. Mr. Hoyt succeeds Bernard Freibaum, who is no longer employed by the Company. The Company will promptly commence a search for a permanent chief financial officer.
I think we all know what "no longer employed by the Company" means. If you own the stock (and, for full disclosure purposes, I may in some fund or in another indirect way) kiss your dividend good-bye. And that makes sense right now.

In an attempt to calm down the market after yesterday, the release also tell us:
All continuing executive officers of the Company have informed the Company that they have repaid in full all previously existing margin loans and thus there will be no further sales of Company stock by those executive officers to satisfy margin calls. In addition, the Bucksbaum family interests have informed the Company that they have not sold any shares of Company stock and that they do not intend to sell any of their shares of Company stock. The Company has been informed by Mr. Freibaum that on October 2, 2008, he sold approximately 2.95 million shares of common stock to satisfy margin calls and applied all of the proceeds to repay outstanding margin debts. After those sales, Mr. Freibaum has informed the Company that he beneficially owns approximately 1.3 million shares of stock and has approximately $3.4 million of margin debt outstanding.
Ow. In other words, get the house in order. The decline in GGP's share price yesterday cost the Bucksbaum family how much? Finally, we see this good news bad news hit in the last paragraph:
The Company continues to be current on all of its debt obligations and is continuing its full financial and strategic review with its advisors.
So all options are on the table. Keep an eye. Reports at Crain's, ugly but astute analysis at Bloomberg, and a piece at Retail Traffic, which notes that GGP stock gapped up at the open on the news. I sadly didn't see anything at the Tribune or the Sun-Times.


Anonymous said...

Recently an insurance company nearly wind up....

A bank is nearly bankrupt......

How it affect you? Did you buy insurance? Did you buy mini note or bonds?

Who fault?

They only talk about how bad the crisis will be, but they did not give regulation measures…..

Although not approved initially when thinking of using tax payer money, $700B is used to save finance industry only, how about the industry that you are in.....retail industry, construction industry, manufacturing industry, R&D, electronics, electrical, mechanical, chemical, IT etc.... each industry will be able to enjoy at least $10B.......Which will make every industry vibrant…..

They say without using tax payer money, they will not be able to lend to small companies…..

Bank primary role is to lend money….else what sort of business will let them earn….?

Many companies had been merged and consolidated, and they are stronger now, so don’t bail out, they will consolidated…..

Many ways of raising their own funds eg preference shares, sovereignty fund etc.

The top management of the Public listed company ( belong to "public" ) salary should be tied a portion of it to the shares price ( IPO or ave 5 years ).... so when the shares price drop, it don't just penalise the investors, but those who don't take care of the company.....If this rule is pass on, without any need of further regulation, all industries ( as long as it is public listed ) will be self regulated......

We must push for it for our next generations......

Sign a petition to your favourite president candidate, congress member again and ask for their views to comment on this, and what regulations they are going to raise for implementation.....If you agree on my point, please share with many people as possible....

Media and finance sector are the only two sectors ( hopefully Hacker can also ) which can overcome political incorrect power, so it is time to fine tune to the correct path, so hopefully media can united to report the truth...... ( because after this incident, they will still required media in future )