Comments on Advance Indiana™: IBJ Says Pacer Bailout No Slam Dunk

The $imon$, like all the other billionaire familie...

2009-03-21T16:16:00.000-05:00

The $imon$, like all the other billionaire families, seem to be circling the horses. They obviously are smart enough to see the writing on the wall. This entire country, for the last 30ish years or so, was only stable and prosperous due to one thing: Debt. Consumer debt drove up prices and wages in numerous industries. The growing economy allowed our various governments to print more and more debt obligations. The game is now up and those elite rich folks who benefited the most seem to be trying to maximize their returns prior to the complete collapse of this country.

As for SPG stock, I looked it up prior to this reply. I then read AI's reply to "Bob." I am also seriously considering shorting SPG when the bell rings on Monday.

To "Bob", the guy who e-mailed me a link (without ...

2009-03-21T15:48:00.000-05:00

To "Bob", the guy who e-mailed me a link (without his return e-mail address) to the Star story bragging about SPG raising $1.1 billion from its stock offering this week, here's a perspective of another reader that might provide would-be investors a fairer picturer of SPG. I don't think you will get this perspective from the Indianapolis media:

"The reason the Star article sounded as it did was as a result of the fact that the Star got their info from the WSJ. Les Morris, spokesman for Simon Property did not issue the local media a release and did not return phone calls. That tells me Simon does not want to discuss the nitty gritty. A red flag!

Also, the Star noted Simon's $3.5 billion line of credit but did not mention what Simon owed on that credit line. Again, another red flag.

Somebody or some group snatched up those new shares very fast without batting an eye. There's a reason for that and it's not a positive for Simon. Wait until a hedge fund starts short selling Simon stock again just like they've done for over a year. Personally, I would short sell it down to a $24 per share target once their Q Report comes out.

Here's the clincher that shows Simon is in trouble. They took on NEW DEBT in the amount of $650 million when the sold 10 Year Senior Notes (bonds) that are paying WHOPPING 10.75% !!!!!

My lord, the Fed rate is virtually at zero and Simon takes on new debt of $650 million and is going to pay 10.75% on that debt over a 10 year period!!! Junk Bonds soon to be sure but at 10.75% a pop somebody was willing to take that gamble. If Simon were to go bankrupt the Senior Notes are ALWAYS paid of first while preferred and common get zip.

And to top it off some idiot ANALyst in Connecticut says Simon now has money to buy "distressed malls". What freaking idiot, those malls are distressed for a reason and nobody will touch them even if they had the money.

So these are the facts as I see them and people a whole lot smarter than me see them too. When a company takes on $650 million of new debt at an enormous rate of 10.75% for ten years it speaks volumes.

I do believe that David Simon has successfully ran Dad and Uncle's company in the ground with a debt burden they cannot overcome in this economy.

For what it's worth, I have two major credit cards and the highest rate of interest of the two is 10.25%. Simons are paying 10.75% on $650 mil and that's a deal????? They are screwed."

PP, it won't be within a year. The Simons know th...

2009-03-21T10:00:00.000-05:00

PP, it won't be within a year. The Simons know the PR consequences of getting an agreement for $15 million more and then turning around and selling the team. It will be at least 3 years after the anger dies down.

Bravo. It's time to buck the sports franchise bul...

2009-03-21T09:30:00.000-05:00

Bravo. It's time to buck the sports franchise bullies.

pThere's a much bigger sport than either basketball or football. It's called 'rape the taxpayer.' And the Simons, Irsays and their counterparts across the country are All Star players. Time to rein them in and stop giving them whatever they want instead of what we can afford.

Whether the Pacers stay in Indy or not, I have sai...

2009-03-21T09:22:00.000-05:00

Whether the Pacers stay in Indy or not, I have said for weeks that they will be sold within one year. There is far too much property and corporate investment opportunities to take advantage of in this economy, where a good investor can make a killing.