3DH

I was merely pointing out a post you wrote that I read as a similarity to the given curiosities regarding rental of DC homes... my apologies if it was out of line in your opinion.

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"Boutique" is better! Another extremely satisfied LUSSO member!

Bourne

That statement made by UE to you has a caveat.

In simplistic terms, a firm is net worth positive if the value of assets is greater than the liabilities. UR has always been in the best shape in the industry because it did not owe anything to T&H members in the short/mid term. For a given year, that amount of debt did not exist/was deferred.

What happens 3-5 years down the line when T&H members would be allowed to receive a part of their deposits back. This will show up as debt and is a potential Damocles sword for UE.

Then again, they did the right thing by deferring and laddering this debt five years down the line hoping that eventual growth will even things out.

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The Nile is a river in Egypt......

adhominem

Does that mean that the net worth was not positive before the merger? If so how does the merger cause the net worth to be positive? Does "enterprise value of the new entity (UE) is > 1.0" take into account all carrying costs and costs of sale (for a reasonable period of time) if 1) no new members join for a period of time and 2) a number of members resign and stop paying dues?


As I posted in another thread: "Unfortunately, when there are problems any sane member is not going to try to publicize them because by doing so they put their deposit more at risk." Hopefully the issues were just because of the merger and things will be fine moving forward.

Kagehitokiri

not sure why you quoted my statement there...

adhominem

was just trying to emphisize my opinion that DC problems won't turn up on this board until it may be too late, but maybe that had already been put to sleep.

caribbeansun

The net asset calculation is not equal to enterprise value but it's close enough I guess not to nit pick. To answer your question, the value does not in any way consider carrying costs or cost of sales.