Using Veritas to Construct the "Per…

29-04-2017 Hits:88416 BoomBustBlog Reggie Middleton

Using Veritas to Construct the "Perfect" Digital Investment Portfolio" & How to Value "Hard to Value" tokens, Pt 1

The golden grail of investing is to find that investable asset that provides the greatest reward with the least risk. Alas, despite how commonsensical that precept seems to be, many...

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The Veritas 2017 Token Offering Summary …

15-04-2017 Hits:82133 BoomBustBlog Reggie Middleton

The Veritas 2017 Token Offering Summary Available For Download and Sharing

The Veritas Offering Summary is now available for download, which packs all the information about Veritas in a single page. A step by step guide to purchasing Veritas can be downloaded here.

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What Happens When the Fund Fee Fight Hit…

10-04-2017 Hits:82015 BoomBustBlog Reggie Middleton

What Happens When the Fund Fee Fight Hits the Blockchain

A hedge fund recently made news by securitizing its LP units as Ethereum-based tokens and selling them as tradeable (thereby liquid) assets. This brings technology to the VC industry that...

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Veritaseum: The ICO That's Ushering in t…

07-04-2017 Hits:86517 BoomBustBlog Reggie Middleton

Veritaseum: The ICO That's Ushering in the Era of P2P Capital Markets

Veritaseum is in the process of building peer-to-peer capital markets that enable financial and value market participants to deal directly with each other on a counterparty risk-free basis in lieu...

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This Is Ground Zero for the 2017 Veritas…

03-04-2017 Hits:82958 BoomBustBlog Reggie Middleton

This Is Ground Zero for the 2017 Veritas Offering. Are You Ready to Get Your Key to the P2P Capital Markets?

This is the link to the Veritas Crowdsale landing page. Here is where you will be able to buy the Veritas ICO when it is launched in mid-April. Below, please...

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What is the Value Proposition For Verita…

01-04-2017 Hits:85087 BoomBustBlog Reggie Middleton

What is the Value Proposition For Veritas, Veritaseum's Software Token?

 A YouTube commenter asked a very good question that we will like to take some time to answer. The question was, verbatim: I've watched your video and gone through the slides. The exchange...

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This Real Estate Bubble, Like Some Relat…

28-03-2017 Hits:56178 BoomBustBlog Reggie Middleton

This Real Estate Bubble, Like Some Relationships, Is Complicated...

CNBC reports US home prices rise 5.9 percent to 31-month high in January according to S&P CoreLogic Case-Shiller. This puts the 20 city index close to an all time high, including...

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Bloomberg Chimes In With My Warnings As …

28-03-2017 Hits:84405 BoomBustBlog Reggie Middleton

Bloomberg Chimes In With My Warnings As Landlords Offer First Time Ever Concessions to Retail Renters

Over the last quarter I've been warning about the significant weakness in retailers and the retail real estate that most occupy (links supplied below). Now, Bloomberg reports: Manhattan Landlords Are Offering...

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Our Apple Analysis This Week - This Comp…

27-03-2017 Hits:84120 BoomBustBlog Reggie Middleton

Our Apple Analysis This Week - This Company Is Not What Most Think It IS

We will releasing our Apple forensic analysis and valuation this week for subscribers (click here to subscribe - lowest tier is the same as a Netflix subscription). As can be...

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The Country's First Newly Elected Lame D…

27-03-2017 Hits:83988 BoomBustBlog Reggie Middleton

The Country's First Newly Elected Lame Duck President Will Cause Massive Reversal Of Speculative Gains

Note: Subscribers should reference  the paywall material here for stocks that should give a good risk/reward scenario for bearish trades. The Trump administration's legislative outlook is effectively a political desert, with...

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Sears Finally Throws In The Towel Exactl…

22-03-2017 Hits:90454 BoomBustBlog Reggie Middleton

Sears Finally Throws In The Towel Exactly When I Predicted "has ‘substantial doubt’ about its future"

My prediction of Sears collapsing once interest rates started ticking upwards was absolutely on point.

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The Transformation of Television in Amer…

21-03-2017 Hits:88032 BoomBustBlog Reggie Middleton

The Transformation of Television in America and Worldwide

TV has changed more in the past 10 years than it has since it's inception nearly 100 years ago This change is profound, and the primary benefactors look and act...

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The initial quote that was attributed to me sounds a bit callous, and that was not my intention. I truly believe that GGP has some serious issues, but I did not intent to make light of them or belittle them. Just want to make my perspective clear.

Excerpts rom downtownexpress.com:

General shrinking? Critics warn Seaport firm has no dough

The stock of General Growth Properties fell nearly 50 percent in the past year, and the company has $18.4 billion in debt coming due in the next 3½ years, according to the Wall Street Journal. Earlier this month, Bob Michaels, G.G.P.’s president and C.O.O., was forced to sell half his shares in the company because of the dropping stock price, the Journal reported...

General Growth hopes to demolish the touristy mall on Pier 17 and replace it with low-rise retail, a boutique hotel and a public plaza. They also hope to build a 495-foot condo-hotel tower just north of the pier (Hey New Yorkers, that's just what our dear city has been lacking, more condo towers - talk about massive demand and no supply in a strong macro environment!), and they want to move the landmarked Tin Building to the pier’s tip...

“They’re dead broke and in extreme financial hardship,” said Reggie Middleton... “I can’t see them doing [a new project]…. They definitely can’t afford a redevelopment of this size.” This doesn't quite read how I intended, but the gist is accurate. They are currently paying a dividend that has been funded through stock sales and mortgage refinancing in a slowing equity, debt and CRE market while they have massive amounts of debt to refi that is looking to be quite troublesome. I think its fair to say they have problems. See GGP and the type of investigative analysis you will not get from your brokerage house  for more on thier trials and tribulations.

Middleton traced General Growth’s expansion over the last decade, in which the company aggressively acquired property around the country, riding the top of the credit bubble. In 2004, General Growth bought the Rouse Company, the former owner of the Seaport mall. Then the credit bubble popped, and Middleton thinks General Growth won’t be able to refinance its debt and will have to either sell off properties or foreclose on them.

Earlier this month, the Las Vegas Review-Journal reported (I was quoted in that article as well) that General Growth is backing out of a deal to co-develop a $4.8 billion resort on the strip, called Echelon. General Growth is also delaying development of a 1.4 million-square-foot mixed-use project in Las Vegas called the Shops at Summerlin Centre, the Review-Journal reported.

Middleton sees these Las Vegas delays as an indication of what could happen at the Seaport.

General Growth executives declined interview requests for this article (But, of course they did), but the firm released a statement defending its ability to complete the Seaport project and indirectly addressing the Las Vegas delays.

 

“G.G.P. conducts business throughout the nation,” a General Growth spokesperson wrote in an e-mail to Downtown Express. “Our decisions in any individual market have no bearing whatsoever on our plan for the Seaport.”

The statement continued, “General Growth Properties has a 50-year track record of successful developments. This is a long-term project and G.G.P. remains 100 percent committed to realizing its vision for the Seaport’s future. We are moving forward without hesitation in our mission to reconnect the Seaport to the Lower Manhattan community and to bring important benefits to the neighborhood.”

Middleton said the statement sounded like public relations “fluff” and he would want to know how General Growth planned to pull itself out of its financial straits. Even when the market improves, which could take years, Middleton does not think General Growth will fully recover.

“They’re not going to come out of this the same company they went in,” Middleton said.


General Growth is working closely with the city Economic Development Corporation on the project, since the city owns the waterfront land G.G.P. wants to develop..

General Growth has a history of requesting — and receiving — government subsidies and tax abatements, according to Good Jobs First, a group that researches development subsidies. Good Jobs First released a report last year called “Growing At Whose Expense?” which calls G.G.P. “one of the biggest drains on local government revenues in the United States.” The report looked at 50 of General Growth’s other malls, about a quarter of its U.S. properties. Fourteen of the 50 malls have received a total of $200 million in government subsidies and $9 million in tax savings from assessment appeals...