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HorseRun
09-13-2007, 11:08 AM
Magna seeks to sell more racetracks

By MATT HEGARTY

Magna Entertainment Corp. will attempt to eliminate more than half a billion dollars worth of debt by the end of next year by selling several of its racetracks, issuing new stock, and exploring partnerships for several real-estate projects and its tracks, the company announced on Thursday.

http://www.drf.com/news/article/88487.html

boomman
09-13-2007, 11:25 AM
Magna seeks to sell more racetracks

By MATT HEGARTY

Magna Entertainment Corp. will attempt to eliminate more than half a billion dollars worth of debt by the end of next year by selling several of its racetracks, issuing new stock, and exploring partnerships for several real-estate projects and its tracks, the company announced on Thursday.

http://www.drf.com/news/article/88487.html

Let the "sell-off" begin!! I'm hoping that Ron Geary and Mike Pegram get some majority ownership in some of these places! Have heard that horseplayer Geary (one of us and the new owner of Ellis Park) is interested in obtaining additional tracks, and Pegram tried to buy the Fairgrounds, and was interested in partnering up for a possible expansion of Los Alamitos (or obtaining others). The sooner these tracks are out of corporate conglomerate hands and into the hands of folks who love and will promote horse racing, the better off our sport will be!:)

Boomer

silverfox
09-13-2007, 11:25 AM
Look for Magna to go under,new stock will make old stock just about worthless.

cj's dad
09-13-2007, 12:19 PM
Managements
Attitude
Generates
Negative
Attendance

DJofSD
09-13-2007, 12:39 PM
selling several of its racetracks, issuing new stock, and exploring partnerships for several real-estate projects

What a well-timed plan -- not!

Real estate is in a severe down turn and credit is tight. What chances are there to sell large tracks of land for development? If they are sold as a going interest, how will the deals be financed and by whom? And a secondary offering in this market -- good luck with that.

garyoz
09-13-2007, 12:54 PM
What a well-timed plan -- not!

Real estate is in a severe down turn and credit is tight. What chances are there to sell large tracks of land for development? If they are sold as a going interest, how will the deals be financed and by whom? And a secondary offering in this market -- good luck with that.

They should just chapter and reorganize. Best part is that debtholders will ultimately control the company--that is unless the biggest creditor is Magna because of all the cash advanced to MECA. Then Stronach would still call the shots.

Someone needs to tell Frankie to get a new gig. Strategic vision is not one of his assets.

ceejay
09-13-2007, 02:21 PM
Managements
Attitude
Generates
Negative
Attendance
So very true!

Dan H
09-13-2007, 09:34 PM
And so goes the Magna Five - one of my favorite bets - mostly because the PPs were free - not because I had any success.

rrbauer
09-14-2007, 10:12 AM
Going to use the proceeds to invest in subprime mortgages.... :lol: :lol:

silverfox
09-14-2007, 10:22 AM
What magna is doing is simple,let frank get as much as he can before bankruptcy.Fact you owe $640,000,000 your stock is worth $200,000,000 what wall street believes company is worth,going bankrupt will give magna 3 to 4 years,make the old stock worthless and start over smaller and leaner with no debt.Sabie?

cj's dad
09-14-2007, 10:51 AM
If you go to the Baltimore Sun- www.baltimoresun.com (http://www.baltimoresun.com) - the business section has an article regarding Magna's plans.

garyoz
09-14-2007, 11:01 AM
What magna is doing is simple,let frank get as much as he can before bankruptcy.Fact you owe $640,000,000 your stock is worth $200,000,000 what wall street believes company is worth,going bankrupt will give magna 3 to 4 years,make the old stock worthless and start over smaller and leaner with no debt.Sabie?

That is not exactly correct. In classic financial analysis (Graham & Dodd) the value of the equity (stock) is the residual after long term debt obligations are met. Equity= value of assets - liabilities (actually more complicated than that). It is amazing that MECA isn't a penny stock.

Bill Olmsted
09-14-2007, 11:08 AM
Joe DeFrancis must be fallin' down on his knee praising the good Lord that he had the presence of mind to sell his majority stake in LRL and PIM to Magna "Entertainment."

cj's dad
09-14-2007, 11:41 AM
Joe DeFrancis must be fallin' down on his knee praising the good Lord that he had the presence of mind to sell his majority stake in LRL and PIM to Magna "Entertainment."

Joe has no "presence of mind", his sister Karen is the "brains" of the outfit.
He is merely a leftover from his father's regime.

Bill Olmsted
09-14-2007, 12:12 PM
Didn't know that.

cj
09-14-2007, 12:16 PM
Imagine how much of that debt could be paid off by selling that prime real estate that Pimlico sits on.

silverfox
09-14-2007, 05:12 PM
Cook Books?????Remember enron?

cj
09-14-2007, 06:16 PM
I hope we get to learn the real story soon from Karl. Surely this is all part of Frank's master plan, right Karl?

rrpic6
09-14-2007, 07:09 PM
Imagine how much of that debt could be paid off by selling that prime real estate that Pimlico sits on.

One of the Top 10 Funniest posts this year! You can never have enough pawn shops and liquor stores.

RR

karlskorner
09-14-2007, 07:30 PM
Stock opened on Thursday at $1.83, up 19.9 percent by the end of the day, 10,000 shares gave you a $2500 PROFIT by the end of the day, Friday up another 24.6 percent, all together a large 44 percent profit in 2 days. As I mentioned couple of weeks back, BUY. Follow the money.

jma
09-14-2007, 10:04 PM
Stock opened on Thursday at $1.83, up 19.9 percent by the end of the day, 10,000 shares gave you a $2500 PROFIT by the end of the day, Friday up another 24.6 percent, all together a large 44 percent profit in 2 days. As I mentioned couple of weeks back, BUY. Follow the money.

Yeah, companies desperately trying to stave off bankruptcy are great investments...what a GENIUS Stronach is, losing $350 million in the past three years, with more to come. The whole thing will be good for those who want fewer tracks and fewer races, because they might see that come to pass.

ddog
09-14-2007, 10:12 PM
fewer tracks seemed to always be in the cards no matter how it came to pass.

that may be good as tracks that are left may end up with larger/deeper fields to bet into.

PaceAdvantage
09-15-2007, 03:06 AM
Stock opened on Thursday at $1.83, up 19.9 percent by the end of the day, 10,000 shares gave you a $2500 PROFIT by the end of the day, Friday up another 24.6 percent, all together a large 44 percent profit in 2 days. As I mentioned couple of weeks back, BUY. Follow the money.Hey man, they don't like redboarding here....you shoulda posted this before the opening bell....

And, for the record, what do you say to the guy who, based on your glowing praise of Stronach throughout the years, bought this stock when it was at $7?

Yeah, you ain't talkin' now, are ya?

joeyreb
09-15-2007, 07:53 AM
I'm hoping this means new ownership for Lone Star Park soon.

Lone Star would be better served to be by local ownership that cared about Texas Horse Racing.

GARY Z
09-15-2007, 08:54 AM
perhaps Mr. S. should relieve himself of HRTV

karlskorner
09-15-2007, 09:13 AM
Hardly "redboarding", without bothering to look it up, 2 weeks ago after an announcement by Magna and a jump of 19 percent in price in one day I stated now is the time to "buy". After Magna's stockholders meeting on Wed. and the article in DRF a person had to be deaf, dumb and blind not to realize that that there was going to be a dramatic move in this stock. Hardly "redboarding".

In my wildest imagination I have no idea what the land is worth that the tracks sit on that Magna is about to sell, I am only familiar with GP, when Magna moves to Palm Meadows Mr. Stronach will pickup another billion.

garyoz
09-15-2007, 09:23 AM
Stock opened on Thursday at $1.83, up 19.9 percent by the end of the day, 10,000 shares gave you a $2500 PROFIT by the end of the day, Friday up another 24.6 percent, all together a large 44 percent profit in 2 days. As I mentioned couple of weeks back, BUY. Follow the money.

Highest percentage decliner on the NASDAQ on Friday. If you loved it at 7 you really have to love it at 2.

Problem is the underlying assets (e.g., Santa Anita, Gulfstream) are not unencumbered--plus need a lot of regulatory approval to sell them off as real estate plays. Chapter 11 is inevitable. It is just a slow drip, drip, drip....spiraling down.

The ultimate problem was Frankie's vision and autocratic Austrian style.

DJofSD
09-15-2007, 10:04 AM
Will it go to the sheets or just get delisted?

jma
09-15-2007, 11:10 AM
Hardly "redboarding", without bothering to look it up, 2 weeks ago after an announcement by Magna and a jump of 19 percent in price in one day I stated now is the time to "buy". After Magna's stockholders meeting on Wed. and the article in DRF a person had to be deaf, dumb and blind not to realize that that there was going to be a dramatic move in this stock. Hardly "redboarding".

In my wildest imagination I have no idea what the land is worth that the tracks sit on that Magna is about to sell, I am only familiar with GP, when Magna moves to Palm Meadows Mr. Stronach will pickup another billion.


You went from being a cheerleader for his great racetrack management to being a cheerleader that he'll eventually make money when he closes his bankrupt tracks and sells the land. Why would a racing fan root for a billionaire to help destroy the game I love but still maybe make a buck in the end? Isn't that missing the point of why all of us are here---horse racing? Sad.

the little guy
09-15-2007, 11:23 AM
You guys are totally missing it. But, luckily, Karl is here to enlighten us all. Frank's master plan was to depress the stock to near delisting, then give the wink and nod to Karl, and Karl could bottom fish for a few cents and make a killing on the certain millions of shares he picked up at the low earlier this week. All those $400 days at the racetrack finally added up to a score.

Some would call it insider trading but myself I chalk it up to loyalty being rewarded.

DanG
09-15-2007, 11:29 AM
In my wildest imagination I have no idea what the land is worth that the tracks sit on that Magna is about to sell, I am only familiar with GP, when Magna moves to Palm Meadows Mr. Stronach will pickup another billion.
FYI Karl;

A resident of Palm Beach who knows racing inside and out said there is exactly ZERO chance Palm Beach will approve a live meet in their backyard.

thespaah
09-15-2007, 10:28 PM
Magna reminds me of the skyrocketing stock prioces of those dot com companies.. Too far too fast. Too much speculation and the belief that ther would always be good times...I think Magna went too far wiht the GP rebuid..yes changing the track to 9 furlongs and rebuilding the turf courses was a great idea..But buying up all that property with the idea of creating this gigantic racing and enteratinment complex seemed to bury Magna..I think Magna will get rid of Laruel Park soon..JMO..I think this because without slots ,MD racing is in big trouble..Laurel has lowered purses for the current meet. Plus, MD is now completely surrounded by sates which have extensive slot and OTB systems. Horsemen will go where the pruses are highest. And MD isn't it..

PaceAdvantage
09-16-2007, 02:01 AM
Hardly "redboarding", without bothering to look it up, 2 weeks ago after an announcement by Magna and a jump of 19 percent in price in one day I stated now is the time to "buy". After Magna's stockholders meeting on Wed. and the article in DRF a person had to be deaf, dumb and blind not to realize that that there was going to be a dramatic move in this stock. Hardly "redboarding".

In my wildest imagination I have no idea what the land is worth that the tracks sit on that Magna is about to sell, I am only familiar with GP, when Magna moves to Palm Meadows Mr. Stronach will pickup another billion.

If that's the case, then I sincerely apologize for the first part of my reply.

The seond part (where the guy bought Magna at $7 based on your support of Stronach) still stands.

PaceAdvantage
09-16-2007, 02:03 AM
You guys are totally missing it. But, luckily, Karl is here to enlighten us all. Frank's master plan was to depress the stock to near delisting, then give the wink and nod to Karl, and Karl could bottom fish for a few cents and make a killing on the certain millions of shares he picked up at the low earlier this week. All those $400 days at the racetrack finally added up to a score.

Some would call it insider trading but myself I chalk it up to loyalty being rewarded.A rare but killer post from TLG....

Dick Schmidt
09-16-2007, 04:23 AM
Just a note on the subject: yesterday (I think it was) the LA Times reported that Santa Anita was up for sale. As I understand it, the city of Arcadia has it zoned so that nothing much but a racetrack can occupy the land. Of course, we all know that money talks and they might be persuaded to change the zoning if it looked to double the local tax base. We'll just have to wait and see.


Dick

Who would love to see Santa Anita return to local ownership.

bigmack
09-16-2007, 05:49 AM
Santa Anita was up for sale. As I understand it, the city of Arcadia has it zoned so that nothing much but a racetrack can occupy the land.
You are correct sir.

http://horseracing.sportsline.com/cbs/headlines/showarticle.aspx?articleId=21912

karlskorner
09-16-2007, 11:18 AM
Have to disagree with your friend in Palm Beach County. 5/6 years ago every
pulpit in Broward County preached and "guaranteed" there would never be slot casino's in Broward County, there are now 5 slot casinos with table games coming.

It's not the Kennedy/Dupont Palm Beach County of yesterday, half the population is from N.Y.C. or thereabouts and they miss the Big A and Belmont.

DanG
09-16-2007, 11:25 AM
Have to disagree with your friend in Palm Beach County. 5/6 years ago every
pulpit in Broward County preached and "guaranteed" there would never be slot casino's in Broward County, there are now 5 slot casinos with table games coming.

It's not the Kennedy/Dupont Palm Beach County of yesterday, half the population is from N.Y.C. or thereabouts and they miss the Big A and Belmont.
I think we need a side bet Karl. ;)

Say…A fresh batch of garlic rolls from Big Louie’s is riding on the outcome. :jump:

joanied
09-16-2007, 02:13 PM
Know that character in 'Let it Ride'....Looney?
Looney= Frank Stronach.
:D