chainma1l
6 years ago
They will just continue doing what they are doing. Selling facilities to SNH and they will eventually just close up shop.
SEC should have gotten involved in this years ago, but now that it's a penny stock, they aren't going to waste their time. Looks like there were a few dollars made going from $.3 to $1.
Five Star faces challenges that are currently negatively impacting its revenues, expenses, cash flows and results from operations, and Five Star expects these challenges to continue at least through 2019. These conditions raise substantial doubt about Five Starβs ability to continue as a going concern. Based on Five Starβs cash balance at December 31, 2018 and projected cash needs for the next 12 months, Five Starβs management believes that Five Star will need to increase its revenues, reduce its costs, renew or replace its existing credit facility, reduce its operating leverage and/or pursue other transactions to be able to continue to fund its operating and capital requirements and meet its debt covenant obligations.
chainma1l
7 years ago
golfndude knows how this thing operates.
It's a cash generating machine for the portoneys. Almost any quarter since inception, FVE could have easily shown a profit, but the way the whole thing is structured, they just pay fees to RMR instead of dropping that to the bottom line.
I dumped this joke a long time ago, but like most of my purchases, I have to continue to watch them and see if I missed out on anything.
Million dollar loss is nothing. I believe they could have shown a profit, easily. They choose to continue the way they do.
Book value is probably well above 2x the stock price, so tell me why people avoid this thing like the plague. It's the corporate structure.
Mackey knows what he's doing. Collecting a huge paycheck to operate this very financially healthy company that pays exorbitant fees to RMR.
Best part for them is the share structure means that NOTHING can be done by shareholders to change anything.
When they decide it's time, the company will be bought by RMR for peanuts, then they will sell it to VC for 10x that amount or maybe they'll just take it public again and do the same thing again.