No Medallion Transfers…..Period
ONE sale in October:
On October 11, 2016 Cheyenne Corp. sold medallion number 4934 to Bapa Cab Inc. for $60,000
ONE sale in November:
On November 7, 2016 Anwar Hermiz sold medallion number 3994 to Rumex, Inc. for $75,000
ZERO sales in December
Chicago has 6,995 medallions.
At the top of the bubble in Q2 2014 medallions transferred at $375,000
The total value of all medallions combined was
In Q4 2016 the TWO transfers averaged $67,500, plunging down 82%
At best, the total value of all medallions combined on December 31,2016 was
Yet does it even pass the RED FACE TEST to use two sales totaling $135,000 to estimate a market 3,500 times that sales volume?
PwC published a great white paper titled Fair Value Measurement 2015. The pdf is available here.
Under ASC 820, assets in inactive markets are known as Level 3 assets. However PwC cautions:
Even when Level 3 inputs are used, the fair value measurement objective remains the same—that is, to reflect an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability
Would more than just a handful of medallions going on the market tank the price below $67,500?
If the Chicago medallion market is not dead, then death must be redefined.