Hi
There's a Boston based REIT company symbol $RMR, managed by Adam Portnoy who inherited the compnay from his father Barry Portnoy.
RMR manages a few REIT companies $DHC $ALR $OPI $ILPT $SVC $SEVN
These companies actually belong to RMR, but to people who don't know the history, it seems as if they're seperate companies only managed by RMR.
But that isn't the case, what's actually going on is like this.
Barry Portnoy back in the day was an attornoy who helped Charles Brennick do all his corrupt business deals. (The FBI raided one of the Brennick facilities back in the day, it was a huge story, but no one was convicted in the end) After a few years Portnoy started conducting his own business, and he cunstructed a very simple business model.
He always had a company that belonged to him that got management fees from his other entities, his company will always get a management fee from his managed companies no matter if they were earning or losing money.
Every time one of his managed company will get into financial troubles, he opened a new entity, bring in a new batch of suckers that invested in the new entity, and realocate the assets from the old entity into the new entity, and usually the share holders of the old entity would lose a huge % of their stake in the assets.
The last time they did this, was when they converted $GOV into $OPI, and as for now there are 8 legal suits against the trustees of RMR, but they have been doing this for decades.
$DHC is a REIT that owns a lot of senior housing and was profitable until the pandemic that hit this sector very hard.
$DHC is trading at less then 10% of its BV, and like at half of cash on hand per shares outstanding, $DHC seems like a great cigar butt, that can easily be a 10 bagger.
But actually it's much worse than a value trap, since management of RMR are morally corrupt to a degree that their companies are univestiable, as a few analyst have stated in the past.
Most investors don't know the history of these people and the history of the companies, since 1 of the tactics the Portnoy's use is merging and remerging their companies, and constantly changing their companies symbols.
I've done research on them and on Barry Portnoy going back to the 60's, and I've found some shocking stuff on their moral corruption, share holders backstabbing, legal battles, and a lot more.
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