by Travis Johnson, Stock Gumshoe | October 1, 2012 4:08 pm
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FYI, later on this evening Ackman did mention that part of the reason for the discount at Brookfield Residential Properties is the “Brookfield Discount” as the parent keeps the price from being where it should be (because they keep control, they extract fees, don’t sell assets because that would shrink their control/fees, etc.) … a discount that he thinks GGP will inherit if Brookfield gets complete control of GGP, the fight against which was the focus of his talk.
Your notes, Travis, on GY as to the Rocketdyne acquisition triggered a dated alarm. Having lived in Simi Valley, CA, below the R’Dyne testing facility located in the Santa Susana mtns., above Simi on the southeast of town and adjacent to the western San Fernando Valley east of their former rocket engine testing facility [got us to the moon and beyond], the toxicity of the water table attributed to R’Dyne over the decades was [is?] an ongoing firestorm. I’ve not drilled down on the apportionment or settlement of those liabilities, if any, as to GY,
Thank you for all you do……….
TVW, JD
I haven’t read in on the environmental cleanup yet — the story in the presentation Q&A was that because the liability was largely pushed off to the prime contractors (Northrup Grumman, I think), that the long-term funding from them and the agreed-upon spending over time in the EPA settlement (this was maybe 20-30 years ago?) means that their environmental commitments actually turn into an asset on the balance sheet because they have ongoing cash commitments from their prime contractor. It sounded like it was a reasonable settlement at the time because they had been following the 1960s regulations but were badly deficient later on when the regs changed in the 1980s, but that’s all I know so far.
good tickers to follow up on … thank you again TJ if I may call you that. About yesterday’s intriguing value DLIA, I’m not finding any analyst coverage. It seems hard for a regular guy to get additional info on DLIA. Do you have any recommendations? Thanks buddy!
They’re too small to have any real analyst coverage — even if there was an analyst on this little name, odds are good that it would be the analyst from the firm that helped them raise money, which generally leads to cheerleading and optimism. Not that they’re unethical or anything.
If you search you’ll see quite a few articles and comments from Whitney Tilson over the years, he’s owned it for a while and writes a lot, but for companies like this it’s hard to get spoon-fed data and forecasts, you have to read the filings and do some thinking and connect-the-dots on their press releases to see if you think their strategy is working. Their investor relations site, including SEC filings, is here: http://www.deliasinc.com/
If I decide to buy or feature them further here, I’ll do what I can to throw in some more data — but I haven’t read their recent filings or anything like that yet.