After 70 years of break-even work, the taxi driver lender may leave the exchange due to the growth of Uber
The American company Medallion Financial may withdraw from the exchange due to the aggressive development of the service to call a taxi Uber . The business model of Medallion Financial is based on crediting drivers to purchase licenses. In December 2013, the company reached a maximum capitalization of $ 400 million. Currently, Medallion Financial's share price has halved, but revenues are still rising.
The fall of the shares of the CEO of Medallion Financial Andrew Murstein connects with market fears about the next step of Uber. The taxi service will allegedly oust licensed drivers from the market and hit a portfolio of loans issued by Medallion Financial. Uber in the last round was estimated at $ 50 billion. Medallion Financial has been trading on the NASDAQ for about 19 years; among its investors are the large funds BlackRock and Morgan Stanley .
The damage caused by the Uber service is so great that Medallion Financial can leave the stock exchange and lose the status of a public company. According to Murstein, several private investment companies and banks have already approached him in recent months. The discrepancy between the capitalization and the financial results of the company is too great, says Murstein.
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Medallion Financial worked with virtually no losses throughout its 70-year history, says Sandler O'Neill analyst Alexander Tverdal. Last week, the Board of Directors of Medallion Financial approved the repurchase of shares worth $ 26 million over six months: twice as much as during the last repurchase. According to Bloomberg, at 19.00 Moscow time on Monday, shares of Medallion Financial went up by 19.77% to $ 7.39 to the closing price of Friday. Taking into account current quotations, it is possible to purchase a fifth of the company for $ 26 million.
The credit unions of New York (Melrose, Montauk, Progressive and Lomto) claim that Uber devalued the cost of the New York taxi medallion by 40 percent. On the balance of these unions, problem loans of $ 2.5 billion for 5,300 taxi medallions stuck. The medallions of the New York taxi are metal emblems with a number, they are mounted on the hood of yellow city taxis. The number of medallions is limited, and the prices of them several years ago reached a million dollars.
The cost of buying an existing license has fallen by about a third (to $ 700,000) since 2013. Shares of Medallion Financial are falling after prices for the driver's license itself. According to the CEO of Medallion Financial, the authorities in New York are interested in restraining the growth of Uber: the budget receives 100% of the cost of each new license and 5% of the sale of already issued, reports Financial Times.
The fall of the shares of the CEO of Medallion Financial Andrew Murstein connects with market fears about the next step of Uber. The taxi service will allegedly oust licensed drivers from the market and hit a portfolio of loans issued by Medallion Financial. Uber in the last round was estimated at $ 50 billion. Medallion Financial has been trading on the NASDAQ for about 19 years; among its investors are the large funds BlackRock and Morgan Stanley .
The damage caused by the Uber service is so great that Medallion Financial can leave the stock exchange and lose the status of a public company. According to Murstein, several private investment companies and banks have already approached him in recent months. The discrepancy between the capitalization and the financial results of the company is too great, says Murstein.
')
Medallion Financial worked with virtually no losses throughout its 70-year history, says Sandler O'Neill analyst Alexander Tverdal. Last week, the Board of Directors of Medallion Financial approved the repurchase of shares worth $ 26 million over six months: twice as much as during the last repurchase. According to Bloomberg, at 19.00 Moscow time on Monday, shares of Medallion Financial went up by 19.77% to $ 7.39 to the closing price of Friday. Taking into account current quotations, it is possible to purchase a fifth of the company for $ 26 million.
The credit unions of New York (Melrose, Montauk, Progressive and Lomto) claim that Uber devalued the cost of the New York taxi medallion by 40 percent. On the balance of these unions, problem loans of $ 2.5 billion for 5,300 taxi medallions stuck. The medallions of the New York taxi are metal emblems with a number, they are mounted on the hood of yellow city taxis. The number of medallions is limited, and the prices of them several years ago reached a million dollars.
The cost of buying an existing license has fallen by about a third (to $ 700,000) since 2013. Shares of Medallion Financial are falling after prices for the driver's license itself. According to the CEO of Medallion Financial, the authorities in New York are interested in restraining the growth of Uber: the budget receives 100% of the cost of each new license and 5% of the sale of already issued, reports Financial Times.
Source: https://habr.com/ru/post/294720/
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