What a bruhah over not much. Clear to me that there is more to the deal than was published. Assuming a .25 dividend which will have no impact on the stock, $6 is a no brainer considering the length of the warrant. We will never know the rest of the deal and it doesn'tmatter. The Cohens pushed it and buried the warrants for peanuts. Job well done and lets forget it. In the meantime...what caused the sudden jump in the pfd C?
That could be. They are certainly in business to make a profit, and stockholders are, their essentials, simply another source of leverage. I think you overstate the case, however. The tendency to demonize managers when the problem is in the market is understandable, but counter-productive. I haven't spent more than five minutes talking with Daniel or Betsy Cohen one on one, but I have done so. I believe them when they say their motives are to build, and help others build, things. In the end, however, all they can do is assess risk and try to make good decisions. Its easy to question those decisions with 20/20 hindsight, but you have to make decisions in the present.
I will not demonize people unless they have shown a clear preference for being evil. I have encountered very few such people, but there are at least least a few such people on this and the AFN board. Be careful about letting their rhetoric infect you. Unless you need the money now, all that matters is the long term.
I was investing to get 20%, 30%+ returns....even if it means building the next "Pottersville."
I think the Cohens were shooting for 100% to 1000% returns.....and I think they got there .....through fees:-)
A market with a short attention span....Yup.
I think that the Cohen's believe that they make the world a little better place by providing the financing that allows people to build things.
I think that the Cohen's, like the operators of all financial industry companies, face an extremely difficult market in which it is not only difficult to borrow money, but to assess risk.
I think that many investors are focused on two hours from now when they should be thinking about two years from now.
Its not starry eyed to focus on fundamentals and to treat the short term as on opportunity rather than a challenge. Its good investment strategy. But even at the speed of light it takes time to reach the stars.
I think its a case of if you owe the bank $100,000 you have a problem. If you owe them $100M the bank has a problem.
It's probably cheaper for the banks to deny everything and extend the loans, than to suddenly flood their balance sheets with hard to market REO.
Overall, I think he's grasping at straws after his big sucess with shorting the bond insurers.
lol i'm never gone for too long. but i do have businesses to run so it get's busy from time to time. you avoiding the land mines deep? cash rich is easier to find than organic growth at this point.
DA, you're an ackman follower right? what is he thinking on ggp? force lenders into refi and pocket the cash flow? FLV is probably not going to be pretty so he's gotta have something up his sleeve.