Boston Taxi Medallion Price Takes a Dive, Market Thins

Between January 1 and July 2, 2014, there were a total of 38 medallions sold at an average price of $680,000. With an average of 6 sales per month, volume was steady.

Then between July 3 and October 6, 2014, only 3 medallions sold. The market became a lot thinner at only 1 sale per month.

The most recent sale on October 6 was for $561,000. The sale before that on September 18 was for $500,000.

The price of a Boston taxi medallion dropped over 18% within 60 days.

Is there a way to take an advantage of the plummeting prices of Boston and New York taxi medallions?

Since Uber and Lyft are not public companies, you can’t buy there stock.

However in my June 24, 2014 post I quoted I described one way.

The publicly traded Medallion Financial (TAXI) is the leading financier of taxi medallions from New York, Chicago, Boston, Newark and Cambridge.

I referenced an article that advised the best way to bet on Uber’s success is to short TAXI.

 TAXI peaked in value on November 2, 2013 at $17.74

On May 30, 2014 TAXI closed at $13.51, 24% below peak.

Today, October 20, 2014 TAXI closed at $11.53, 35% below peak.

Investors have placed their bets.

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s