Another Company Going ‘Dark’

Add Drive Shack (DS) to the list of company’s going ‘dark’ and delisting their securities. The date of delisting will be 1/3/2023.

Drive Shack common shares trade at 47 cents, but the company has continued to pay dividends on their 3 preferred issues.

The 3 preferred issues closed today between $9.98 and $11.10 and can be seen here

The company press release is here.

10 thoughts on “Another Company Going ‘Dark’”

  1. NYSE To Suspend Trading Immediately In Pennsylvania Real Estate Investment Trust, Commence Delisting Proceedings

    Well, that happened fast. At least Drive shack made an announcement….. Although, not sure which is better. PEI’s preferreds have been suspended for a while now, so the carnage seems to be less ‘catastrophic’ to the shares.

    But, similarly, they both seem to be moving to OTC. PEI already has it’s OTC tickers.

    I wonder if this is just the tip of the iceberg. While it’s no surprise that PEI has been struggling for a long time, and apparently DS has also been a dumpster fire as well, I think this is a dark cloud over preferred investors.

    While I have only been playing in the preferred arena for a few years, there just seems to be a lot of sudden corporate / SEC / NYSE actions that are detrimental to the small fish.

  2. Market did not take kindly to this announcement. About the worst one day performance of $25 preferreds I have ever seen.

    DS-B @ 6.00 down -39.9% low was down -66%
    DS-C @ 7.79 down -27.5% low was down -36%
    DS-D @ 6.36 down -42.7% low was down -53%

    You normally only see percent moves this large on issues trading under 1.00. So these are STUNNING losses. All three of these traded roughly in the @20’s three months ago. Hard to think the business went from relatively stable to dumpster fire in that short of time period. Not sure if the company was not transparent or the “analysts” were asleep at the wheel. Gotta be somewhere in there. . .

    We do not hold any of these in any account and do not have open long/short orders either.

    1. Tex–Thanks for this – after I posted the press release I was going to watch them–but didn’t. I figured they would go lower and they didn’t ‘disappoint’ so to speak.

  3. Maybe she has a knack for positioning ‘things’ for ‘certain parties’ before, during and thru the BK process? Hey, experience counts!

  4. Kelley Buchhorn

    She was CFO @ Pier One which went bankrupt
    She was CFO @ JC Penney which went bankrupt
    Is interim CFO of Drive Shack. . .

    1. Tex–can you imagine–‘let’s hire her’!! I’ve noticed in the finance arena it is all about ‘who you know’.

  5. What a dung heap of a company. Didnt smell any better when it was called Newcastle either.

    1. Grid–at least I can semi-understand the logic here since they have been off and on near bk.

    2. DS preffereds down to $3 bucks? My inexperience has been asking whether these are a steal here or going by?

      1. sjc, Have you seen the financials?

        In the words of the late Raymond DeVoe, “More money has been lost reaching for yield than at the point of a gun.”

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