JDS

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jman111
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Re: JDS

Postby jman111 » Wed Oct 14, 2015 1:46 pm

An interesting quote from the city attorney (Pacific's link, above):
Mike May wrote:When the City puts [tax incremental financing] into a project, the project yields a physical object, such as a building, that increases the tax base to contribute to the repayment of the City’s investment. The key is to be certain the building is constructed and makes that contribution to taxes. The City is not a shareholder either in the developer of the project or any of the tenants of the project.

(my emphases)
While this is most certainly true, it seems to be a bit misleading. Doesn't it follow that for the city to be "certain" that the building "makes that contribution to taxes", it must (by extension) be certain that the developer and/or tenants of the project will perform to their predicted potential? As seen at Edgewater, what if the predicted tax revenue is far less than anticipated? Isn't that tax contribution dependent upon their success?

Sure, the city isn't a direct "shareholder". But it sure seems to have a vested interest in their success. MPMay, am I missing something here?

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Re: JDS

Postby jman111 » Wed Oct 14, 2015 2:08 pm

To clarify, following the link provided in the Isthmus article reveals the rest of the quote:
TIF is essentially money loaned or granted to the developer - not to any tenant - to assist in the creation of a physical asset. The City make (sic) take security such as a mortgage on the property or obtain guarantees of repayment, but the legal structure of the transaction is nothing like purchasing shares in a corporation.

(my emphasis)

So, in fairness, Mr. May did clarify that there is a legal distinction. The Isthmus article (IMO) should have included more of May's text from the letter, for clarity. It seems misleading to even imply that the city has no interest in the success of the project.

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Re: JDS

Postby christopher_robin » Thu Oct 15, 2015 3:01 pm

"They probably will not be hiring as rapidly though they will continue to ramp up," Soglin told News 3 This Morning. "This could then change the design of the project."

http://www.channel3000.com/news/mayor-a ... e/35842930

He's only, what, a week behind us on this?

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Re: JDS

Postby christopher_robin » Thu Oct 15, 2015 3:03 pm

Ahem

christopher_robin wrote:Clearly Mayor Soglin doesn't understand any of this:

------
Mayor Paul Soglin, asked about the drop in shares at a budget press conference Tuesday, said he doesn't think it is relevant.

"It’s a result of a change in classification and it’s not a final decision," Soglin said. "We don’t see that it changes Exact Sciences' hiring, which is what’s critical to this decision."

http://chippewa.com/news/local/govt-and ... 49fee.html
------

If my taxes didn't just go up I might be nicer about this. But it's now abundantly clear to me that neither the mayor nor most of the council have any inkling about how publicly traded companies work.

Let's look at that again:

"We don’t see that it changes Exact Sciences' hiring, which is what’s critical to this decision."

So, when a company is suddenly worth 1/2 of what it was the day before, this will not affect hiring?

W.T.F. Soglin. If you are that clueless, seek expertise elsewhere. The first step of getting clued in is recognizing that you are clueless. Start there.

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Re: JDS

Postby christopher_robin » Thu Oct 15, 2015 3:13 pm

Jeez, they hit $6.86 today:

http://www.msn.com/en-us/money/stockdet ... =INSFIST10

In today's dead cat news:

"Exact (EXAS) Is Today's Dead Cat Bounce Stock"
Trade-Ideas LLC identified Exact ( EXAS) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Exact as such a stock due to the following factors:

■ Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, EXACT SCIENCES CORP's return on equity significantly trails that of both the industry average and the S&P 500.
■ Net operating cash flow has significantly decreased to -$31.19 million or 88.60% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
■ Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 58.52%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 83.33% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

http://www.thestreet.com/story/13325552 ... stock.html

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Re: JDS

Postby christopher_robin » Thu Oct 15, 2015 3:26 pm

Stu Levitan wrote:If you've read the conference call that ExAs had with analysts -- and you DID read the report, right? -- you would see that Conroy was surprised by the recommendation; company fully expected to be included in recommended treatments.


Stu, this is ... an idiotic statement, there's no other word for it.

(1) There is no other possible way from a PR standpoint for Conroy to react in attempting to placate shareholders.

(2) If the company "fully expected to be included in recommended treatments" they are wholly incompetant -- because they were not.

(3) To conclude that the JDS process was not rushed to beat the recommendation is to be credulous to a fault. This is $47 million we are talking about. A life raft for a sinking ship. Why DO you think they were putting so much pressure on that particular timeline? Do you think that no one at the C-level of the company, ever, for an instant, entertained the possibility that they might not be be included in recommended treatments? An absurd proposition -- but even if you believe it, see (2).

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Re: JDS

Postby christopher_robin » Thu Oct 15, 2015 4:29 pm

Hoo boy, this just keeps getting uglier. Joe Tarr digs in:

On June 3, the negotiating team that was hashing out the Judge Doyle Square project with a private developer asked for some advice from Brian Weinstein. Weinstein is a stock analyst for the Chicago-based William Blair & Company, and the city’s negotiators wanted his opinion on Exact Sciences, which was vying to have its headquarters be the cornerstone of the Judge Doyle Square project ... What isn’t mentioned in the report, however, is that Weinstein’s firm is the third-largest holder of Exact Sciences stock. It currently holds more than 5.4 million shares.

--------------

And Weinstein was the ONLY analyst the city consulted (!!!)

Heads should roll.

http://www.isthmus.com/news/news/defini ... le-square/

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Re: JDS

Postby gargantua » Thu Oct 15, 2015 6:12 pm

So when will we get our next opportunity to bail out on this proposal and review the others that were so cavalierly cast aside? I hope that we're all ready to lobby our alders.

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Re: JDS

Postby snoqueen » Thu Oct 15, 2015 7:03 pm

"They probably will not be hiring as rapidly though they will continue to ramp up," Soglin told News 3 This Morning. "This could then change the design of the project."


Do not forget part of the agreement with Exact Sciences is that they provide a particular number of new jobs. If their hiring plan slows down, is that not yet another reason to question the wisdom of the city's continuing to back the company?

The last thing we need is having Madison start to resemble the Walker administration handing out millions to completely unqualified business applicants. Let's see the mayor's office and certain alders back off, swallow their pride, and take a good hard second look. There's still time.

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Re: JDS

Postby jman111 » Fri Oct 16, 2015 2:01 pm

Paul Soglin suspects Exact Sciences stock drop will affect Judge Doyle Square design, timing

In a letter to City Council members Friday, Mayor Paul Soglin said he suspects there will be impacts on the design and timing of the Judge Doyle Square project following a drop in Exact Sciences Corp. shares this week and opened up the possibility of restarting negotiations with three alternate developers.

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Re: JDS

Postby willystresident » Tue Oct 20, 2015 4:44 pm

http://www.isthmus.com/opinion/citizen- ... look-good/

Interesting point RE the impending driverless car and the plethora of parking in the JDS proposal. I've always thought those underground parking garages could be repurposed as data centers, though I'm not sure the floor to ceiling height would be enough to accommodate server racks, but I don't know these things.

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Re: JDS

Postby snoqueen » Tue Oct 20, 2015 4:58 pm

I know I've said previously on this forum that, regarding parking facilities, at the very least they should be built with horizontal floors and separate ramps at the ends instead of on the continuous-inclined-plane model. If the floors are horizontal with high enough ceilings to retrofit HVAC, the structures could be repurposed for human occupancy or, at the very least, some type of storage or warehousing.

The driverless car thing only makes this more obvious.

While I'm not sure how soon driverless cars will be practical in snow and ice, we have to assume at the very least car technology has not attained some steady state whose future will look just like its past. How many other business models are buried in that graveyard?

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Re: JDS

Postby jman111 » Mon Nov 02, 2015 12:00 pm

Press Conference this afternoon
Exact Sciences will hold a news conference with Madison Mayor Paul Soglin at 2 p.m. Monday to discuss the fate of a downtown redevelopment project at Judge Doyle Square.

http://www.channel3000.com/money/exact- ... t/36204104

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Re: JDS

Postby willystresident » Mon Nov 02, 2015 12:08 pm

jman111 wrote:Press Conference this afternoon
Exact Sciences will hold a news conference with Madison Mayor Paul Soglin at 2 p.m. Monday to discuss the fate of a downtown redevelopment project at Judge Doyle Square.

http://www.channel3000.com/money/exact- ... t/36204104



Should we read intentionality into the choice of the word "fate"? Is it dead?

jman111
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Re: JDS

Postby jman111 » Mon Nov 02, 2015 2:01 pm

plans scrapped


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