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iStar Financial Inc. Message Board

  • smoothjazz0204 smoothjazz0204 Aug 9, 2011 7:35 AM Flag


    Looks like the Jay & the BOD are finally stepping up after this massive selloff. If they can move quickly enough and use the entire $65M and get the shares below $5, that's a buyback of 13M+ shares. That's 14% of the current 92M float!!!! That's a great way to use capital given the current discount to book, and sends a terrific message that the PFDs are in great shape. I also noticed that as of 6/30, they had $12.6M remaining on their prior buyback authorization which is now "substantially completed". So it looks like they mave have bought back $12+M worth of stock since since the end of 2Q through 8/8.

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    • Though I don't remember the exact details of the "incentive" stock award granted to Jay a year or so back, I can't help but think that in the back of his mind is an eventual attempt to take SFI private.... If I remember correctly, there's a massive incentive grant that would provide him with more than 10% additional ownership once the stock price exceeds a trading price over a specific increasing price target which I think currently is $10/share... Assuming that award was granted in a specified number of shares, what a great way to be able to buy the company back for an overall cheaper total personal outlay than to have the company buy back existing float when it is much cheaper? The buyback itself theoretically increases the share price, future corporate performanced accelerates the stock price eventually and voila! Once the true and permanent recovery of commercial real estate and SFI takes hold, Jay exercises his "incentive" grant and then, once all the economy's risk is taken out of the equation, he makes his bid for the now lessened total number of shares outstanding that he doesn't already own and guess who gets taken out of the equation and who gets to make the real fortune? Opinions? Could SFI be operated as a private company? Either way, it would be a nice problem for any shareholder who entered SFI in the past few years to be facing.

    • SFI up 25% and the preferreds up 10%. Gotta hand it to management on that one. Perhaps other companies should be paying attention.

    • I agree with this post, except for the description "finally".

      Is seems to me that the company has moved extremely quickly.

      It seems they have used up their remaining capacity under their old repurchase plan and then instituted a new one in a very timely manner.

      The market seems to appreciate this.

      FWIW, at this hour, the SFI preferred have taken back all of yesterday's losses and both SFI and RSO common have almost taken back yesterday's losses whereas most other financials are still much lower than where they closed on Friday.

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