MAGNA Entertainment Corp worth peanuts

[majxmom]

I think GGF is at great risk because the city of Albany no longer cares about it. It used to provide a quarter of their budget, now it's only 5%, so they now want to grab it as an open space. Some developer will convince them that they will give them 25% open space in exchange for packing in condos, and it will go. Remember that if you face away from the grandstand toward the bay, you can see three bridges and the SFO skyline. Developers would kill to have that property, and it won't be a mall.

Regarding the Dixon issue: when Stronach first cooked up that plan, GGF was still sitting on a lease that was going to expire soon, and Bay Meadows Land company had already announced it would develop, although it operated for several more years. It seemed like a great idea for somebody to open another track. In fact, a serious attempt was made in the early 1980's to build a new track in Hayward. In those days, we still had 10,000 people to the racetrack on the weekends, and cities hated the idea of the traffic. Pleasanton had already said they didn't want the riff-raff from the track (they've since reversed themselves since now we have no live attendance to speak of). The only thing we all thought was nutty was parking the track out in Dixon with no people and all the heat. But then, like zinn21 said, their approach just got more and more arrogant, and it was obvious to everyone it was never going to sell.

[Joltman]

well, there must still be some cash somewhere in the Magna empire.

http://news.yahoo.com/s/nm/20090425/bs_ ... _germany_1

Bad money chasing bad money?

jm

[TrueColours]

joltman - interesting - but you have to also understand Magna's position in looking to acquire shares in Ford (a few years ago) and now GM.

The main business that Magna Corp is in is tool and die and supplying parts to the Big Three auto makers. If any of them go down, a large percentage of Magna's core business is also lost. So - from a pure business perspective, if they bail out GM Opel and part of that bailout is conditional upon GM continuing to buy parts from the Magna companies (or perhaps even "upping" their buy to, lets say, 70% Magna produced parts from the 50% they currently purchase), they have then solidified their position as the parts supplier for the forseeable future

Honestly - Magna has no choice in the matter, because if they dont become an integral part of one or more of the Big Three, their future is in jeopardy as the confirmed parts supplier once those existing contracts expire and/or a new player comes onto the scene to bail them out who might be purchasing parts from a competitor to Magna

Its like watching a very interesting chess game being played ...

[Bunty Lawless]

joltman - interesting - but you have to also understand Magna's position in looking to acquire shares in Ford (a few years ago) and now GM.

The main business that Magna Corp is in is tool and die and supplying parts to the Big Three auto makers. If any of them go down, a large percentage of Magna's core business is also lost. So - from a pure business perspective, if they bail out GM Opel and part of that bailout is conditional upon GM continuing to buy parts from the Magna companies (or perhaps even "upping" their buy to, lets say, 70% Magna produced parts from the 50% they currently purchase), they have then solidified their position as the parts supplier for the forseeable future

Honestly - Magna has no choice in the matter, because if they dont become an integral part of one or more of the Big Three, their future is in jeopardy as the confirmed parts supplier once those existing contracts expire and/or a new player comes onto the scene to bail them out who might be purchasing parts from a competitor to Magna

Its like watching a very interesting chess game being played ...

Very enlightening! All makes sense now. With all that is happening with Big 3, I'm wondering if MEC isn't the least at risk, as far as investment. The unions and union "legacy contracts" are destroying the auto industry's viability; just as those things destroyed the steel industry in this country. We never learn.

[Joltman]

Its been coming and now is here. Its yours for the right price.

Don't count on Halsey Minor to save anything. The bank which loaned him big bucks for his Charlottesville hotel was shuttered and everything is in litigation.

The lawyers will be the winners. But Cal racing may be the BIG loser here.

jm

[Hold Your Peace]

Its been coming and now is here. Its yours for the right price.

Don't count on Halsey Minor to save anything. The bank which loaned him big bucks for his Charlottesville hotel was shuttered and everything is in litigation.

The lawyers will be the winners. But Cal racing may be the BIG loser here.

jm

http://www.dailyprogress.com/cdp/news/l ... tel/39588/

http://williamsburgsrealestate.com/2009 ... al-issues/

Yes despite all of his talk Minor has no hope of gaining control of any racetrack.

[Joltman]

here is the link on the fire sale of SA

http://www.bloodhorse.com/horse-racing/ ... properties

Is there anybody out there interested in these properties that is a for-real entity and can afford to purchase, then lose some money running races trying to get to profitability? If not, one really has to question the viability of SoCal racing circuit in 12 months...

jm

[Bunty Lawless]

here is the link on the fire sale of SA

http://www.bloodhorse.com/horse-racing/ ... properties

Is there anybody out there interested in these properties that is a for-real entity and can afford to purchase, then lose some money running races trying to get to profitability? If not, one really has to question the viability of SoCal racing circuit in 12 months...

jm

What will be will be. I wouldn't be surprised if it all turned out much better than it looks on the surface. I think they ought to form a corporation of money people in racing and purchase the tracks. If nothing else, we'll see just how much those that have benefitted most from racing, really care about it!

[st. louis kid]

What amazes me is that Stronach actually thought he could rebuy these properties himself through another corporation for pennies on the dollar and nobody would object. The guy has lost it years ago and racing is paying the price.

[Joltman]

Now the German parent of Magna, must not be in too bad shape after all. Apparently they want to bid for GM.

http://news.yahoo.com/s/nm/20090524/bs_ ... pel_fiat_3

Nothing like backing yet another loser.

Maybe the Preakness 2010 will be at Baden Baden.

jm

[zinn21]

Stronach built an empire by being in the right business at the right time. With the auto industry in shreds that puts his core business in real jeopardy.

[TrueColours]

zin is correct.

Magna / Stronach has no choice in the matter.

If they dont buy into GM (and I believe this is GM Opal - the European division and not GM North America) they lose a HUGE portion of their parts business if GM folds. And then they face the very real possibility of shutting their doors as well. So - if they now own a percentage of GM Opal, they can a) mandate that all/most parts for GM Opal must come from a Magna company and b) they can have a critical say in how the GM operation is being run. And to be very honest, if I was a struggling auto maker, having Mr Stronach at the helm pulling the strings would NOT be such a bad idea at all. He is, after all, a brilliant businessman and would probably do far better than who they have there right now ...

I, for one, hope that he is successful in doing so ... it would be a positive step forward for everyone concerned

[IcouldbeU]

Thank goodness we kept our horses off the east coast for this racing season after all.
http://www.thoroughbredtimes.com/national-news/2009/March/17/Maryland-Jockey-Club-bounced-14-checks.aspx

[Barbaro06]

Good gravy!!!!

[Joltman]

zin is correct.

Magna / Stronach has no choice in the matter. ...


I, for one, hope that he is successful in doing so ... it would be a positive step forward for everyone concerned

I would agree that he pretty much has to do it or the whole empire crumbles. The problem is though that when a corporation has overwhelming debt (MEC), it has a way of pulling down the whole conglomerate. AIG was actually very sound financially, but because of one small part of their holdings, the whole thing became foodfest of the piranhas. Same could happen to Magna.

And yes, you can't argue with Stronach's investment in racing, despite the repeated failures, not all of which are due to mismanagement.

jm