On November 28, 2016, Boston medallion number 517 was purchased for $107,100 by
Preet Trans Incorporated
8 Albany Street
Woburn, MA 01801
Boston Hackney claims the arm’s length price averages $350,000. See:
Evidence of loans backed by one medallion each prove Medallion Financial (NASDAQ:MFIN) used $360,000 as the assumed value of a Boston medallion as of September 30, 2016.
MFIN claims the “fair value” of their Boston loan portfolio was $23,862,000 on September 30, 2016.
Investors, analysts and the media will need to wait until December 31, 2016 to review newly recorded arm’s length transfers necessary to value MFIN’s Boston loan portfolio legally following ASC 820 guidelines.
If the $107,100 transfer price is used, MFIN’s Boston loan portfolio would need to be marked down by $16,763,055 to $$7,098,945 as of December 31, 2016.
The 32 MFIN borrowers I contacted on December 19, 2016, together own 43 Boston medallions and owe $15,621,000 to MFIN. Therefore, their outstanding loan balances average $363,279 per medallion. At a mark to market value of $107,100, the LTV on average is 339%.
Any comments on these facts and logic are welcomed.