tag:blogger.com,1999:blog-2080506270244832638.post3616730702776055013..comments2024-03-28T07:17:13.573-05:00Comments on Clark Street Value: LMP Automotive: Quick Update, LiquidationMDChttp://www.blogger.com/profile/10679835609782815537noreply@blogger.comBlogger63125tag:blogger.com,1999:blog-2080506270244832638.post-86314317049925990242023-09-15T13:52:31.374-05:002023-09-15T13:52:31.374-05:00After the last payout they said the final distribu...After the last payout they said the final distribution should be in Q1 2024 - anyone have a clue what kind, if any, assets remain? If they're used car dealers and UAW gets out of hand (unlikely imho), this could be a 5bagger with 50% haircut for those who can buy dark stocks. vko007https://www.blogger.com/profile/15858463956616053271noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-14372137317858118732023-09-15T13:37:33.274-05:002023-09-15T13:37:33.274-05:00This comment has been removed by the author.vko007https://www.blogger.com/profile/15858463956616053271noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-14535912484931628042023-08-02T16:20:37.833-05:002023-08-02T16:20:37.833-05:00any idea when the rest of the cash will be paid ou...any idea when the rest of the cash will be paid out? they closed the final sale in June so was expecting to have been paid out by nowAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-955740279725754312023-05-12T10:08:14.174-05:002023-05-12T10:08:14.174-05:00Other than mgmt's 10.5 guide from Aug 2022 whi...Other than mgmt's 10.5 guide from Aug 2022 which would leave $4ish - after car market got crushed - not much idea? Would have to know dealerships left etc - anyone?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-31146146381436811772023-05-09T09:36:02.981-05:002023-05-09T09:36:02.981-05:00Any estimate/news on what the remaining stub is wo...Any estimate/news on what the remaining stub is worth after latest div?vko007noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-46696692096200890362023-02-17T11:55:22.730-06:002023-02-17T11:55:22.730-06:00https://www.globenewswire.com/news-release/2023/02...https://www.globenewswire.com/news-release/2023/02/09/2605558/0/en/LMP-Automotive-Holdings-Inc-Declared-a-Special-Cash-Dividend-of-4-68-Per-Share-Payable-on-February-28-2023-To-All-Stockholders-of-Record-as-of-February-13-2023.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-46716336585765100482023-01-11T11:05:09.137-06:002023-01-11T11:05:09.137-06:00any new info on liquidation or pricing? "The...any new info on liquidation or pricing? "The Company further announced that it is continuing to move forward with the Plan of Liquidation allowing the Company to sell all of the Company’s assets, distribute the net proceeds to stockholders and dissolve the Company. As part of the Company’s liquidation plan, LMP intends to make a partial distribution to the shareholders of record beginning in January 2023. The Company will announce the amounts and shareholders of record date shortly."Puckbaghttps://www.blogger.com/profile/00009311534103496698noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-36853258167785355362022-12-19T11:32:24.907-06:002022-12-19T11:32:24.907-06:00https://www.globenewswire.com/news-release/2022/12...https://www.globenewswire.com/news-release/2022/12/19/2576067/0/en/LMP-Automotive-Holdings-Inc-today-announced-it-has-closed-on-the-sale-of-its-KIA-Dealerships-in-Port-Charlotte-FL-and-Cape-Coral-FL-to-Morgan-Auto-Group-and-Provided-a-Corporate-Up.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-5329451514688602082022-10-11T09:14:22.735-05:002022-10-11T09:14:22.735-05:00Any idea why stock is not trading?Any idea why stock is not trading?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-5209757945251493662022-10-08T10:39:01.137-05:002022-10-08T10:39:01.137-05:00Good stuff thanks JakGood stuff thanks JakVKKapitalhttps://www.blogger.com/profile/10932135583878995852noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-17446516301150938982022-10-08T09:01:47.567-05:002022-10-08T09:01:47.567-05:00Sorry, last bearish comment for the thread. I wou...Sorry, last bearish comment for the thread. I would note that not all "cash" at the dealership level can be distributed in an acquisition. OEMs require a minimum cash balance. The purchase price usually contemplates this cash balance or assumes that a certain level of cash stays at the dealership. It may not make much of a difference here, but it's worth noting that not all cash should be added back to potential liquidation proceeds. Here is a note from one of the purchase agreements: Excluded Assets & Name License. Notwithstanding anything in this Agreement to the contrary, the following assets are not being sold pursuant to this Agreement: (i) all cash and cash equivalents, wherever located and in whatever form (unless “petty cash” is noted on the Closing Memorandum or Closing Statement). To me it sounds like most of the cash on hand remains with the dealership. jakclallyhttps://www.blogger.com/profile/17221562776635618768noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-11838103691416547092022-10-08T08:55:36.180-05:002022-10-08T08:55:36.180-05:00I get $156 million of proceeds from the sales not ...I get $156 million of proceeds from the sales not including the TN assets. This assumes the Kia dealerships get the same price as contemplated in the original acquisition. Lastly, I assume the there is no equity in the working capital. The cars are offset by floorplan financing as most new cars are financed at 100% and used are financed around 80%. Netting out debt and adding cash gets me to around $9.77 a share. I'm comfortable with $9 a share liquidation value by the time you factor in bonuses, fees and other items. A 10% / $11mm reduction in the purchase price for the Kia dealership wipes out a dollar per share in liquidation value. Just not enough of a margin of safety here to be interesting given all the unknowns. I guess the counter-argument could be that they are generating plenty of cash as this drags on. I guess I'm too late. Wish I had listened to MDC on the original write-up. I'd share my math but it seems like copying and pasting excel lines doesn't work well on the site. Let me if I missed anything. I probably did. jakclallyhttps://www.blogger.com/profile/17221562776635618768noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-71452756223732212132022-10-07T06:26:22.147-05:002022-10-07T06:26:22.147-05:00Agree with the above, although 10-11 seems high. ...Agree with the above, although 10-11 seems high. Still of the opinion that this buyer is pretty unsophisticated and probably overpaid, especially on RE. They also probably paid a pre-covid market blue-sky multiple on a business that was over-earning. I don't know what the right number is given that we still don't really know what those kia stores earn in normalized times for dealerships. I would guess the right number is higher than the current mkt cap, though. I'm sure someone like a Terry Taylor is looking at this now. May hold my nose and buy. Thanks again Anonymous and MDC. jakclallyhttps://www.blogger.com/profile/17221562776635618768noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-22339463810998890612022-10-06T12:08:17.014-05:002022-10-06T12:08:17.014-05:00Seems like a good opportunity here. These dealersh...Seems like a good opportunity here. These dealerships are pretty fungible assets, so would expect them to trade hands easily. Cash position better than originally thought too. Think we can still play for $10-11Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-50646234533978998272022-10-06T10:15:39.154-05:002022-10-06T10:15:39.154-05:00Good call jak - so what now?
https://investors.lmp...Good call jak - so what now?<br />https://investors.lmpah.com/?qmodStoryID=8444090426009271vko007https://www.blogger.com/profile/15858463956616053271noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-23327872279405040602022-10-04T12:43:23.642-05:002022-10-04T12:43:23.642-05:00Port Charlotte location inventory is all intact - ...Port Charlotte location inventory is all intact - no hurricane issues with the dealership. They have a second FL location which I haven't checked with. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-33543447068887250302022-10-04T05:32:50.959-05:002022-10-04T05:32:50.959-05:00For anyone interested in the auto world, LPRO is i...For anyone interested in the auto world, LPRO is interesting at these prices. Pretty cheap on what may be peak earnings for a little while. I think it's a solid business. The pessimist in you will think it's just another way to skin the cat on subprime auto financing. I think it's a brokerage / securitization business that has 100% market share on a small slice of auto loan supply (loans from credit unions). jakclallyhttps://www.blogger.com/profile/17221562776635618768noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-35766478940455746792022-10-03T19:21:54.427-05:002022-10-03T19:21:54.427-05:00Thank you! Sounds like they can walk if they want ...Thank you! Sounds like they can walk if they want and they may not have even needed the hurricane. Going back to MDC's point, these are pretty fungible assets and I'm sure another buyer could step in and pay a similar price unless the current buyer way over-bid. <br /><br />Interesting that the current buyers sued Kia back in 2020. I don't know if you can glean any insight from this, but just thought it was interesting. https://www.pilotonline.com/inside-business/vp-ib-kia-lawsuit-1012-20201015-ffkxvepu5jhu5j2utb45gn5vzm-story.html. The Atlantic owners seem to keep a very low profile. Not much about them online other than lawsuits. jakclallyhttps://www.blogger.com/profile/17221562776635618768noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-17578795303541442942022-09-28T20:31:08.316-05:002022-09-28T20:31:08.316-05:00I didn't go thru every purchase agreement but ...I didn't go thru every purchase agreement but I believe they're largely the same. From the Coral Gables RE purchase agreement my read is that the purchaser can terminate until 10/3/22 due to weather damage. Even if no weather damage my read is purchaser can walk away by just forfeiting the deposit - <br /><br />3.5 Termination of Agreement. At any time during the Inspection Period, Purchaser shall be permitted, in Purchasers sole discretion, to give Seller written notice in accordance with the notice provisions of this Agreement terminating this Agreement if Purchaser is dissatisfied with its physical inspection of the Property as part of its condition, development, usage, zoning, survey, title and environmental due diligence activities. Purchaser shall have no obligation to give a reason for such termination. If Purchaser delivers such a notice, then this Agreement shall terminate, Purchaser shall receive a refund of the Deposits (under this Agreement and under the Asset Purchase Agreement), and both parties shall be relieved from any further liability hereunder, except for those matters which, by their terms, survive the termination of this Agreement (the “Surviving Obligations”). The sixty (60) day period following the Effective Date is herein referred to as the “Inspection Period.” Purchaser may at its option waive its right to terminate this Agreement pursuant to this Section 3.5 by written notice delivered to Seller. Notwithstanding anything contained herein to the contrary, following the expiration of the Inspection Period, the Escrow Deposit (as defined in the Asset Agreement) shall become non-refundable except as otherwise expressly set forth in Section 11 of the Asset Purchase Agreement.<br /><br />11. CASUALTY DAMAGE. In the event that the Real Property is damaged by fire or other material casualty prior to Closing, Seller shall promptly give Purchaser written notice of such occurrence. In the event the damage creates a hazardous or otherwise dangerous environment, as determined by Purchaser in its reasonable discretion, Purchaser may elect to terminate this Agreement upon notice to Seller within fifteen (15) days after Purchaser’s receipt of Seller’s notice of such casualty, in which event the parties shall be relieved of any further obligations hereunder except for the Surviving Obligations. In the event Purchaser elects not to terminate, the parties shall proceed to the Closing and Seller shall deliver and/or assign to Purchaser all insurance proceeds collectible for such loss or damage and provide a credit against the Purchase Price equal to the applicable deductible.<br /><br />13. REMEDIES.<br /><br /> <br /><br />13.1 Buyer’s Default. If Purchaser shall breach this Agreement at or prior to the Closing, or if the Closing fails to occur by reason of Purchaser’s failure or refusal to perform its obligations hereunder or by reason of Purchaser’s inability to perform its obligations under this Agreement, then Seller shall so notify Purchaser in writing specifying the nature of the breach. Purchaser shall have ten (10) days from the date of such notice to cure the breach. If Purchaser fails to cure said breach within said ten (10) day period or otherwise resolve the matter to Seller’s reasonable satisfaction, then Seller’s sole right and exclusive remedy will be to terminate this Agreement by giving written notice thereof to Buyer and then Seller may take the Deposits (under this Agreement and the Asset Purchase Agreement) as liquidated damages in full settlement of all claims, remedies or causes of actions against Buyer under this Agreement, including the remedy of specific performance and other forms of equitable relief. It is impossible to estimate more precisely the damages which might be suffered by Seller upon Buyer’s default. Seller’s retention of the Deposit is intended not as a penalty, but as full liquidated damages.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-76450360027834012222022-09-28T15:04:13.747-05:002022-09-28T15:04:13.747-05:00Any thoughts on whether their purchase agreement h...Any thoughts on whether their purchase agreement has a force majeure clause? Haven't been staying up to date on this, but I assume the two FL-based Kia dealerships that comprise most of the value are going to suffer big inventory write-downs. Presumably covered by insurance and the deal moves forward as expected. But I guess the buyer (do we know who, yet) could use it as a way to walk or recut the deal. jakclallyhttps://www.blogger.com/profile/17221562776635618768noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-72794510553106924832022-09-14T20:35:39.530-05:002022-09-14T20:35:39.530-05:00The press release makes it sound like the original...The press release makes it sound like the original liquidation proceeds guidance is on track, $10.50 to $11.50.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-72984645545383068312022-09-14T19:15:08.227-05:002022-09-14T19:15:08.227-05:00What do you think of this recent sale - are still ...What do you think of this recent sale - are still on track for $10, $11...?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-63765320996673137982022-09-14T15:54:26.550-05:002022-09-14T15:54:26.550-05:00Generally, brokers will let you sell, just not buy...Generally, brokers will let you sell, just not buy. Need a brokerage account that allows for expert market trades to do that.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-10641128561208737902022-09-14T09:29:42.421-05:002022-09-14T09:29:42.421-05:00It is expert market now. Unfortunately, I can'...It is expert market now. Unfortunately, I can't buy more even if I wanted to, but if you do have access to the expert market, probably a good buy.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-64968267315070291302022-09-14T08:57:54.534-05:002022-09-14T08:57:54.534-05:00Anyone know why not trading today? At Etrade, the...Anyone know why not trading today? At Etrade, they are showing bid and ask of $0.00MJHnoreply@blogger.com