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#1
04-03-2008, 07:05 AM
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Magna machinations: Frank's new trick
A remarkable few days for those that enjoy the Magna sideshow with Stronach yet again finding a way to wrangle money (another $40 million) out of his auto parts business. David Einhorn (Greenlight Capital) screaming again about the outrageous tactics and brazen behavior of Stronach.. Below find 4 pieces that will help you understand the sad and bizarre failure Magna Entertainment is.
To understand the players: A.) Magna Entertainment Corp (MEC): Stronach Racing-related business B.) Magna Development Inc (MDI): Holding company created by Frank to lend money to MEC and manage real estate/lease property to Magna Industries entities. The entity Greenlight invested in and complains is failing to provide value to shareholders by fatuously pandering to failed MEC needs. C.) Magna Industries (MI): Original, highly successful and financially stable Stronach auto parts business. GLOBE & MAIL STORY ON PROPOSED DEAL: http://www.theglobeandmail.com/servl...Story/Business MAGNA PRESS RELEASE ON THE DEAL: http://www.shareholder.com/MID/NEWS/20080331-302190.pdf GREENLIGHT CAPITAL PRESS RELEASE OBJECTING TO DEAL: http://money.aol.com/news/articles/_...02084709990013 NATIONAL POST STORY GIVING BACKGROUND ON MI EXECS DISPLEASURE WITH MEC: http://www.financialpost.com/story.html?id=415244
__________________
All ambitions are lawful except those which climb upward on the miseries or credulities of mankind. ~ Joseph Conrad A long habit of not thinking a thing wrong, gives it a superficial appearance of being right. ~ Thomas Paine Don't let anyone tell you that your dreams can't come true. They are only afraid that theirs won't and yours will. ~ Robert Evans The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command. ~ George Orwell, 1984. 
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#2
04-03-2008, 08:29 AM
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Dude is a Class A Scumbag. I have no idea when Greenlight bought their shares, but they obviously didn't know who they were dealing with when they did.
I love how he can use Super-Voting Shares to overturn a 92% vote. I can only hope that the money infusion into MEC will make things better for their racetrack holdings, but I doubt it. Not as long as this clown is holding the puppet strings of the decision makers at MEC.
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#3
04-03-2008, 11:20 AM
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Just before Magna bought MJC, I had a friend who vehemently opposed the sale to the point he would stand in the clubhouse at Laurel whenever Joe was walking around and raise his voice in protest. I always told him what an ass he was being and that ANYTHING was better than Joe DeFrancis owning MJC.
Looks like I was wrong....
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#5
04-04-2008, 12:29 AM
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Quote:
NYRA No Bid Contracts, plus every bit of other BS they have been involved in over the past few years. One of the biggest supporters of NYRA getting the bid to run NY racing is the head of this forum board. I believe the correct word is "Chutzpah" I thought the guy with the biggest EGO in NY sports history was Denis Potvin. I now think we have a horse race.
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#6
04-04-2008, 03:43 AM
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April Fools Day was Tuesday.
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#7
04-04-2008, 04:37 AM
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[quote=theiman]People Who Live In Glass Houses Should Not Throw Stones ( don't criticize other people when you yourself have faults and weaknesses ... )
Perhaps you should heed your own advise..... instead of starting up this nonsense again.
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#8
04-04-2008, 09:38 AM
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[quote=3kings]
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The Kool-Aid crowd makes me laugh too.
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#9
04-04-2008, 09:46 AM
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Magna has singlehandedly ruined Gulfstream Park and is the process of burying racing in Maryland. Mr. Stronach basically has a set up where his vote supercedes the will of the shareholders and funnels money to failing MEC.
NYRA, despite a conspiracy between the former Governor, state lottery division and a broken racing model continues to put out the best year round product out there. If this is Kool Aid, make mine cherry.
__________________
You have a million dollar set of legs and a five cent fart for a brain.-Herb Brooks
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#10
04-04-2008, 09:49 AM
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#11
04-04-2008, 09:54 AM
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[quote=theiman]
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As to your other churlish and trollish comments, when do I 'come out all the time and knock the other owners of tracks'? Find all the examples... I'm eager to see them... Secondly.. It does happen to be my website, and I will express whatever views I care to.... No one is obligated to agree with me on anything. What's your point already? Don't like our community here... leave. It's obvious what you're all about.
__________________
All ambitions are lawful except those which climb upward on the miseries or credulities of mankind. ~ Joseph Conrad A long habit of not thinking a thing wrong, gives it a superficial appearance of being right. ~ Thomas Paine Don't let anyone tell you that your dreams can't come true. They are only afraid that theirs won't and yours will. ~ Robert Evans The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command. ~ George Orwell, 1984.
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#12
04-04-2008, 10:20 AM
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By the way... Funny that as someone 'attacking owners of other tracks' I had Ron Charles of MEC-owned Santa Anita on "At the Races with Steve Byk" (M-F, 4-7pm, Sirius 126) repeatedly to help stem the negative publicity of the CushionTrack difficulties and defended SA's position in the situation endlessly.
Funny that as someone 'attacking owners of other tracks' I traveled to MEC-owned Remington to broadcast "At the Races with Steve Byk" (M-F, 4-7pm, Sirius 126) and have endlessly plugged what a great facility it is and what an asset Scott Wells is to Magna and the racing industry. Funny that as someone 'attacking owners of other tracks' I had Lou Raffetto of the MEC-owned Maryland Jockey Club on "At the Races with Steve Byk" (M-F, 4-7pm, Sirius 126) repeatedly whenever he needed to try to offset negative publicity associated with Magna's mismanagement of Laurel and Pimlico. Want some more examples... friendo?
__________________
All ambitions are lawful except those which climb upward on the miseries or credulities of mankind. ~ Joseph Conrad A long habit of not thinking a thing wrong, gives it a superficial appearance of being right. ~ Thomas Paine Don't let anyone tell you that your dreams can't come true. They are only afraid that theirs won't and yours will. ~ Robert Evans The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command. ~ George Orwell, 1984.
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#13
04-04-2008, 10:32 AM
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[quote=theiman]
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I prefer Frank's Energy drink.
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#14
04-04-2008, 04:45 AM
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Quote:
 I laughed..
__________________
All ambitions are lawful except those which climb upward on the miseries or credulities of mankind. ~ Joseph Conrad A long habit of not thinking a thing wrong, gives it a superficial appearance of being right. ~ Thomas Paine Don't let anyone tell you that your dreams can't come true. They are only afraid that theirs won't and yours will. ~ Robert Evans The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command. ~ George Orwell, 1984.
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#15
04-04-2008, 07:24 AM
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Quote:
__________________
You have a million dollar set of legs and a five cent fart for a brain.-Herb Brooks
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#16
04-04-2008, 12:24 PM
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Quote:
There are 5 major institutional inverstors in Magna Dev. Their percantages of total Mag Dev stock range from 14% to 8%. Greenlight owns 10%. How come the other major sh holders aren't barking as well? According to Magna's response today, Greenlight has been been "attampting to impose its views" since 2003, when Magna Dev spun off. You have to ask why Greenlight has stuck it out so long, as Stronach has been feeding money into MEC for years? It's interesting that the initial stock price was about $18/sh and as recently as 10 months ago traded as high as $39/sh. so, over those 4 years ending 10 months ago, Einhorn's initial $80 million turned into $190 million. That's not bad. But, the stock has been beat hard the last 10 months and that $190M is now $130M. Maybe that's what's got Einhorn especially po'd? The second most interesting fact is that the five biggest inverstors Magna Dev holdings represent the following percentages of their OWN firm's portfolios: 0.8%, 0.9%, 1,7%, 1.7% and 5.0%. The 5.0% is Greenlight. Einhorn certainly does have a lot of his eggs stamped Magna. The most interesting fact is that upon news of the proposed restructuring, Magna Dev stock rose 16% in a day which addded just under $200,000,000 in value to the company's stock. SOMEBODY liked the reorg plan.
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#17
04-04-2008, 01:06 PM
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Thanks for your imput here.. I know you have a real grasp of the financial market side of this, and the details of that aspect are not easy to grasp. Einhorn was on ATR last month and couldn't really expand too much on the pending court case, but his frustration with MI and MDC catering to MEC was palpable. I have no idea how Stronach plans to straighten things out at MEC. There just isn't any coherent direction..
__________________
All ambitions are lawful except those which climb upward on the miseries or credulities of mankind. ~ Joseph Conrad A long habit of not thinking a thing wrong, gives it a superficial appearance of being right. ~ Thomas Paine Don't let anyone tell you that your dreams can't come true. They are only afraid that theirs won't and yours will. ~ Robert Evans The Party told you to reject the evidence of your eyes and ears. It was their final, most essential command. ~ George Orwell, 1984.
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