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General Growth Properties Inc. (GGWPQ.PK) Message Board

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  • madmoneyguru madmoneyguru Nov 19, 2009 4:21 PM Flag

    Present value of GGP is $32.54/share

    You haven't included ANY upside for any increase in tenancy, any improvement in current properties, or any growth factors whatsoever. My point is, while it is nice to be conservative, the buyout value or breakup value is still much higher. Even at $7/share it is reflective of a company in bankruptcy. Once they really do emerge from bankruptcy things get much better and valuations go much higher.

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    • I think you are double counting by adding the book value and the enterprise value. IMO, it is either worth the asset value less the debt or it is worth a multiple of its earnings potential. Not both.

      I am not saying that I know what the numbers are. Just commenting on your methodolgy.