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  • Fact-Checking The Taxi Medallion Market [View article]
    Mr. Steier, didn't TAXI just LEND $185,600 on each of two Medallions in March that were sold at a "stated" price of $290,000 as part of their 'standard conservative underwriting procedures?' Were these same 'stated' prices used to value their portfolio of 159 owned Chicago medallions? Looks like their March loans are already under water.
    Jul 3, 2015. 10:01 AM | Likes Like |Link to Comment
  • Fact-Checking The Taxi Medallion Market [View article]
    This auction took place on 30 June and failed to achieve a price of even $150,000. I wonder how TAXI will value its Chicago medallions for the quarter ended June 30, 2015? This is some nice fresh data. So which prices are the outliers Mr. Steier?
    Jul 1, 2015. 09:23 PM | 1 Like Like |Link to Comment
  • Fact-Checking The Taxi Medallion Market [View article]
    "The Chicago Dispatcher was informed there were no bids on the medallion during the public sale. However according to David Koshers, General Counsel of Progressive Credit Union, responding via email, "We were contacted by a buyer who made an acceptable offer and so the process was converted to a private sale. The complete sale information will be available from the Department of Business Affairs and Consumer Protection when the transfer is processed."

    I asked Mr. Koshers via email what the agreed upon price was but have not received a response as of the time of publication." Chicago Dispatcher
    - See more at:

    MR. STEIER - So no bids at the opening price of $150,000. Let's track this medallion and see what price it is recorded at. Anyone could have had it at the auction at $150,000 as there were no bidders and this was the opening price. How much lower than $150,000 do you think it was? Or will it magically get recorded at some price higher than $150,0000 despite no takers at the auction for $150,000? Unfortunately, it will probably take months for it to be recorded.
    Jul 1, 2015. 09:18 PM | 1 Like Like |Link to Comment
  • Fact-Checking The Taxi Medallion Market [View article]

    Under 810 ILCS 5/9-601 ET SEQ. - Uniform Commercial Code

    Secured Party: Progressive Credit Union
    Debtor(s): Michael O. George, Individual Owner
    Date of Sale: June 30, 2015
    Time of Sale: 1:00 p.m.
    Location of Sale: 161 N. Clark St., Suite 4700, Chicago, Illinois 60601
    Collateral: City of Chicago Taxicab Medallion Number: 1999TX

    The medallion described above will be sold to the highest bidder in satisfaction of an indebtedness owed by the above-referenced debtor(s) (the “Debtor”) to Progressive Credit Union (“Progressive”) in the approximate amount of $233,500.00. Opening bidding shall start at $150,000.00."
    - See more at:
    Jul 1, 2015. 09:09 PM | Likes Like |Link to Comment
  • Fact-Checking The Taxi Medallion Market [View article]
    As for Marking to Market, you really should read FAS 157. Here is a summary - Then tell me about what I know or dont know about marking a portfolio of medallions to market. The use of non-independent data to value medallions. The non-use of exit data to mark to market, etc. It is the difference between using Generally Accepted Accounting Principles (GAAP) instead of applying your Conveniently Rationalized Accounting Principles (I'm sure you can figure out the acronym).
    Jun 30, 2015. 04:43 PM | 1 Like Like |Link to Comment
  • Fact-Checking The Taxi Medallion Market [View article]
    Also, Mr. Steier, did you forget about the Troubled Debt Restructurings that TAXI reported for the March 31 quarter totaling $7,469,000 (pre-modification) and $8,996,000 (post-modification) consisting of 11 medallion loans? It is called EXTEND AND PRETEND. Roll the overdue and unpaid interest up into principal and call it a new loan. Voila! no more delinquency for $7.469 million in loans. Who is trying to fool readers Mr. Steier?
    Jun 30, 2015. 04:33 PM | 1 Like Like |Link to Comment
  • Fact-Checking The Taxi Medallion Market [View article]
    Mr. Steier - What are you talking about? In the article you purport to be "fact checking" Mr. Hickman CITES 3 private sources:
    - Mohammad Kamran - owner of City Service Taxi (475 affiliated cabs.)
    - Shoib Hasan - licensed taxi broker and manager and owner of Globe Taxi Association, Inc. (roughly 500 members.)
    - Charlie Goodbar - Chicago Taxi Attorney
    I note that these are private sources who are sometimes hard to get to agree to be interviewed or quoted for the record. YOU on the other hand, refuse to disclose the name of the person you interviewed at a public company for this article. UNBELIEVABLE!
    Why do I need to ask if he as provided the names in his article? MORE MISDIRECTION MR. STEIER??
    Jun 30, 2015. 04:12 PM | Likes Like |Link to Comment
  • Fact-Checking The Taxi Medallion Market [View article]
    "On the 'borrowers are paying' theory you put forth, overdue payments (more than 30 days) are around 4% of the portfolio for medallions at March 31, 2015 and rapidly deteriorating over the past few quarters. Gross interest charged on the portfolio is between 4-5% if memory serves. Doesn't sound like people are paying irrespective of the circumstances as you keep saying." My earlier comment Mr. Steier. Clearly states the magnitude of the RAPIDLY GROWING problem. If you think a 4% greater than 30 day delinquency rate is "barely any" for this supposed "low risk" asset based lending then perhaps you and I should agree to disagree.
    Jun 30, 2015. 02:47 PM | 1 Like Like |Link to Comment
  • Fact-Checking The Taxi Medallion Market [View article]
    BrokerBob45 - If you admit you have nothing to add to the discussion then why do you keep posting? You have suggested I have provided no useful information. Do you really believe that? You are not here asking questions, you are making uninformed (by your own admission) definitive statements as a holder of the stock. As such, expect that your statements to be examined. I am looking for the correct answer from whomever it comes. I would gladly change my views if the facts or circumstances changed or if someone (including you) showed me a more sensible way to look at the current TAXI situation. Instead, I see a group of people pretending that somehow licenses that are OFFERED at $150,000 should somehow be valued at $277,000 on the books of this company. Also, an author of this article purporting to 'check facts' who won't even disclose who he interviewed at this public company or actually show that the facts he is checking are not true.
    Jun 29, 2015. 02:39 AM | 1 Like Like |Link to Comment
  • Fact-Checking The Taxi Medallion Market [View article]
    BrokerBob45 - you say the following items above that seem incongruous -
    1. "I am long TAXI"
    2. "I do not have facts,[#3.] just opinions"

    Usually it is good to do analysis and investing in the following order #2 then #3, then #1. You mention in your comments and your profile that you dispense business advice. One would expect that you would do your homework before doing so. Why not do the same here?

    Not sure what you are referring to as useless information? Is it the availability of Chicago medallions at values substantially below what TAXI carries them on their books for? Or that they are writing new loans above $150,000?

    You can ignore the facts at your peril but useless? Oh, or is it the above comments about your investing style that you consider useless? Or is it the fact that my comments go against your admittedly ill advised investment decision?
    Jun 28, 2015. 02:47 AM | Likes Like |Link to Comment
  • Fact-Checking The Taxi Medallion Market [View article]
    Mr. Steier, I sent Mr. Hickman's profile photo to my mom and she has confirmed it is definitely not me. MORE MISDIRECTION?

    Have you read the 10Q yet? Do you see where it says that the medallion loans in TAXI's medallion loan portfolio have an LTV of 0-153% with a weighted average of 70%? Do you see where delinquent loans are up 87.6% in only 3 months despite your comment: "I see an increase in delinquent loans by a modest amount."?? Is TAXI valuing its 159 Chicago medallions at an average of $277,000 when medallions are available to purchase at $150,000? (YES!) Has taxi made loans in march at above $150,000 loan amount in Chicago?(YES!) What is the name of the person you interviewed at TAXI?
    Jun 28, 2015. 02:32 AM | 1 Like Like |Link to Comment
  • Uber Has Lost The Taxi Battle In NYC [View article]
    Sorry ff2017. My point is still valid. Agreed many do manage their own licenses (the list is for the last auction of 36 Accessible licenses but I take your point) but they also manage for passive owners by paying them $3,000/month. There are many thousands of non-driver licenses (~60% of over 13,500 licenses) and they are not all owned by owner/managers. These are highly leveraged investments for some who have been investing for capital appreciation in what was a growing bubble market and not looking for a 3.6% return. Remember, a 10% increase on a $1,000,000 leveraged medallion is a 33-50% gross return if you only put 20-30% down. Hard to get that in muni's or diversified bonds.

    In addition, those that do manage medallions have a slew of additional costs including insurance, staff, maintenance, etc. I would assume they make money on the management part (or else, why would they do it) but that is a return for management services that does not require owning a medallion (just like driving a cab does not require owning a medallion.) It will not take many speculators at the margins who invested passively for capital appreciation to swing the market down for all.
    Jun 26, 2015. 03:40 PM | 2 Likes Like |Link to Comment
  • Uber Has Lost The Taxi Battle In NYC [View article]
    Mr. Meyers likes to cite owner-drivers which make up app. 40% of the medallion population because he can then mix together revenues from owning a medallion (an investment return) with revenues from actually driving a cab (a return for labor) and then cite a debt service coverage ratio that looks much bigger but does not take into account that the driver/owner also has some incidental expenses such as food, shelter, clothing, caring for his family, etc.

    In actuality, the return on owning a medallion is the lease fee of $3,000/month or 36,000/year. If you assume a medallion owner had a 70% loan on a $1,000,000 purchase (well within the range of the last few years) and his/her loan was at 4% with a 25 year amortization then the monthly payment would be $3,694.86 or $44,338.32 or a 0.81x debt service coverage ratio. Notice where the decimal point is. A far cry from 4-5x debt service coverage and an even farther cry from 10-12x. This is also a loan that will likely attract a much higher interest rate IF it is renewed at all thereby making the economics look even worse.

    This is the debt service coverage ratio for owning a medallion. Not for owning a medallion combined with driving a cab. Not owning a medallion and managing a medallion. Not for owning a medallion and working as a magician’s assistant. Just for owning a medallion. OOOPS! Doesn’t look so good Mr. Meyers, does it?

    Jun 26, 2015. 03:42 AM | 2 Likes Like |Link to Comment
  • Uber Has Lost The Taxi Battle In NYC [View article]
    ff2017 – Very good points and welcome to the world of Larry Meyers, where numbers are cited to suit his agenda. A loan of $464819 appears to be a 70% LTV of a purchase price of $664,027. Many borrowed much more than this to purchase medallions over the past few years and it will be these people at the margins (higher borrowings) that will run into trouble first.

    Here is another example of Larry Meyer’s magic:
    "Truthful economics of taxi driving demonstrate 4-5x debt service coverage." from summary above in this article dated June 23, 2015.

    “The secondary market price for a medallion is irrelevant to the owner-driver. All that matters is his cash flow, and the average medallion earns 10-12x annual debt service each year....not counting lease fees from other drivers that the owner leases to.” Larry Meyers comment on April 15, 2015 in the article “For Medallion Financial, The Future Is Arriving” by Paulo Santos

    So, if 4-5x debt service coverage is now “truthful economics”, what does that make Mr. Meyer’s previous claim that the debt service coverage was 10-12x?
    Jun 25, 2015. 03:03 PM | 2 Likes Like |Link to Comment
  • Fact-Checking The Taxi Medallion Market [View article]
    It's called a 10Q Mr. Steier. You should read one sometime before you write your articles. Lots of numbers and and such.
    Jun 24, 2015. 08:59 AM | 2 Likes Like |Link to Comment