Multiple Choice Answer B = ProLogis (PLD)
Yesterday, I told you that the company to which these financial statements belong is doomed:
ProLogis
The company is ProLogis (PLD). They claim to be the, “…the world’s largest owner, manager and developer of distribution facilities, with 542.3 million square feet (50.4 million square meters) of industrial space in 132 markets across North America, Asia and Europe.” [BLAH, BLAH, BLAH!] For the past few weeks, I have been intensely researching this ProLogis. It all started one day in July when I was researching REITs. I noticed that its Levered Free Cash Flow was approximately -$540M while other REITs were positive. (By the way, the AMB is “A” and Eastgroup Properties is “C”). The above balance sheet is updated for the current quarters results and you can see that its Levered Free Cash Flow is now -$715.59. Thus, cash flows are accelerating out of the company.
Since I made this discovery, I have been curling up to ProLogis’ SEC filings nightly. I have reviewed their worthless 10K’s and 10Q’s. I am convinced this company is going to fail.
I warn you: I am not an accountant, I am not a professional analyst and I don’t have a Harvard MBA (I do have one from Golden Gate University, which started out as a YMCA night school). However, I am partially edumacated, know how to read and I definitely know what bull$#%& smells like.
Could I be wrong? Of course - and I consider that possibility everyday as I struggle with the problem of induction. However, Im confident I am right and people will mention me alongside James Chanos and David Einhorn one day.
In the coming weeks, i will justify my position with evidence. I will pick apart their public reports and let you be the jury.
DISCLOSURE: I own one share of ProLogis and lots of PUT Options.
September 22nd, 2008 at 11:15 pm
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