maybe4less Posted July 4, 2017 Share Posted July 4, 2017 I get ~1.5M shares from Preferred B (852,250 shares outstanding x $10 par / $5.57 covert price) and ~0.3M shares from preferred C (170,360 shares outstanding x $25 par / $13.5 convert price), but otherwise agree with you. These convertible preferred deals have not been great for shareholders, but maybe were the best way to get financing for a microcap company. Link to comment Share on other sites More sharing options...
PSDFinancier Posted July 5, 2017 Share Posted July 5, 2017 Ah, good catch, missed the diff between conversion price and par in the financials. Wow, that is a lot of dilution. I'm in ALJJ, and these MHGU financing deals seem so much more expensive than what ALJJ was able to do, especially given that MHGU is in arguably a better quality business than ALJJ. But I guess the latter benefits from the relationship between Jess Ravich and Cerberus. Link to comment Share on other sites More sharing options...
DTEJD1997 Posted November 26, 2018 Author Share Posted November 26, 2018 Hey all: Anybody else out there following MHGU? It seems to have fallen off the radar scope again. One thing I've noticed is that after so many years, they've reached an agreement with Disney to sell their undeveloped land in the Bahamas. Disney says they are willing to spend up to $400mm to develop the property for their cruise ships. I can't seem to find what the sale price is. A $15mm or $20mm sale would be a big deal for a company the size of MHGU. As an aside, I sometime eat at their Wendy's restaurants in Michigan. Good news/bad news...The good news is that there seems to be a bunch of customers for their stores. The bad news is that the quality of their employees at certain locations is wanting. They are not fast serving the customers. I wonder if somebody could staff & run the locations in question, they would simply make a killing. Any thoughts or comments? Link to comment Share on other sites More sharing options...
Radio Free Cash Flow Posted November 26, 2018 Share Posted November 26, 2018 I still own a LOT of it. The share price has been stuck in a range as the company digests its recent large acquisitions. I wish the company would be a little less aggressive with its balance sheet. They are carrying debt of about 2.8x restaurant-level cash flows. On the other hand, operating results have been nothing short of excellent. Schermer really knows how to run these units and how to invest in them. My hope is that the company spends a few more quarters optimizing its existing network and deleveraging in both a relative and absolute sense before considering additional acquisitions. I know they're incredibly determined to reach 400+ units, but they shouldn't work the balance sheet any harder to do it. Link to comment Share on other sites More sharing options...
NorteCapital Posted November 26, 2018 Share Posted November 26, 2018 The problem here is capital allocation. I wonder why they increase the dividend and not talk about debt repayment in their press releases lately. Execution seems fine so far. Link to comment Share on other sites More sharing options...
Sullivcd Posted November 27, 2018 Share Posted November 27, 2018 This one definitely has my attention. Does anyone have an estimate for normalized free cash flow yield? It looks like EV is approaching $300m and they break out consolidated EBITDA but I can't find what a running maintenance cap ex number would look like as opposed to cap ex including store remodeling. There could be enormous opportunity with old owners not wanting to finance remodels. Link to comment Share on other sites More sharing options...
DTEJD1997 Posted April 12, 2019 Author Share Posted April 12, 2019 Hey all: I've recently started looking at MHGU again. The stock is certainly not expensive...perhaps it is even a bargain. The thing that interests me the most is the agreement they have to sell their Bahamas property to Disney Cruises. That could result in a nice chunk of cash. Good to expand business, pay down debt or some combination. Eric at "The Intelligent Investing Podcast" was very kind to have me back on his show. We discuss MHGU, please check it out at: https://ericschleien.com/podcast/meritage-hospitality-group-mhgu/hospitality-group-mhgu Link to comment Share on other sites More sharing options...
oscarazocar Posted April 12, 2019 Share Posted April 12, 2019 From the annual report, it looks like MHGU owns 15% of the entity that owns the Bahamas land, and that proceeds from the sale are $5.041 million to MHGU. https://backend.otcmarkets.com/otcapi/company/financial-report/212812/content Link to comment Share on other sites More sharing options...
oklavalue Posted April 12, 2019 Share Posted April 12, 2019 Bahamas...correct on the $5m...it does say they sold a "portion" of the land. We know it was originally 700+acres. I believe their press release mentioned selling a "majority", however the Bahamian newspapers suggest Disney bought 150 acres...we should find out in the next few quarterly disclosures. Link to comment Share on other sites More sharing options...
oklavalue Posted May 8, 2019 Share Posted May 8, 2019 indeed....Meritage Bahamas retained 13 ocean front acres for future development. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now