honestly, today looked like a pump and dump. my guess is management inflated earnings, someone came in and started buying premarket in size then everyone who is anyone got out midday. again, not sure why anyone would want to own equity in this company. seriously, would you rather own CBG or Bank of America. Both are overleveraged, and have crappy assets. The difference is, one has a government backstop, and people that have attended an some sort of university. The other has people who have attended high school, and commercial real estate, and commercial real estate assets. Hmmmm. Lets be real....CBG is a complete pig.
i think the equity in SPG is worth very little by referencing one metric of data. Commercial Property Equity (i.e. SPG) is equivalent the the BBB- CMBX tranche (commercial mortgage back securities credit default insurance) that is esstentially trading at pennies on the dollar. This means that if you were to ask an insurance company to insure your SPG stock against going to $0.00....it would cost you about 40% of the value of the stock today per year. these REITs are garbage.
As far as CBG is concerned. shorting the stock here is not necessarily a bad play. this is a penny stock in a depressionary commercial real estate environment. this stock is trading as if Bankruptcy is looming. I am short, and am not worried one bit.
Blue Buick- All these guys are in trouble. If you trade i would recommend trading the SRS on a daily basis. SPG is a little different they do have assets, if retail really plumments then this stock is in trouble, if we get to this point then we are are in trouble. SPG has assets the bank will have to hang in there with them.
CBG is a whole different story they are finished. BLUM capital controls this company as being the major bond holder. They will team up with Goldman Sacks to do a pre-packaged bankruptcy at something below a dollar share, that is why I am shorting this thing, it is a no brainer.