Your comments were a lot beefier than the article.
The author didn't spent too much time studying the subject. Some gross errors like the year-to-date appreciation of the stock or the lack of understanding on CTs earnings. I am not holding this because of the past. I think we should consider the business they are in and the one they are trying to get in in relation to what is going on with Fannie and Freddie and the CMBS market. Add to the mix the new heavy-weight name of Blackstone backing the effort and suddenly we may see a magnificent outcome. It looks like they may have a plan. We will see how this trades after May 6th.
I agree. The reasons for owning CT have morphed from turn-around candidate, to buy-out/dividend candidate, to CMBS dry-powder opportunity that corresponds to the fact that CMBS is looking somewhat "peak cycle" right now.
I wouldn't like CT on it's own right now, but Blackstone appears to be making CMBS a priority right now, given the void being left by the banks, and CT is at least one avenue by which they want to do it. Given the heightened attention that the more traditional M-REITs are paying to commercial in light of the compressed yield curves being wrought by the fed's QE-Infinity, money-printing extravaganza, it would appear that Blackstone has some company in that space.
I think it'll trade the same as it has, but the jags will be dollars versus pennies. The reverse split dries up volume, and all of us who've been here for a while know this is already a thin volume trader. The real tell tale will be after the capital raise. That'll put some volume back into the stock and they're going to have to make SOME KIND of announcement\guidance leading into that. I'm going to ignore any activity after the reversal until an earnings announcement and the secondary offering. REALLY want to hear these guys speak to their game plan.