cdx announced at the end of the second quarter that they will be booking a lot of home sales in the third and fourth quarters of this year. Certainly this market for houses in ca is tremendous and cdx has been active in it this year; excellent timing! these sorts of earnings are not always repeatable, but for the time being, we should be in the sweet sport. Also, I live in the bay area and have followed the mission bay project with some interest. it looks to me like the project will be getting an early and relatively easy approval. This, of course, is far from certain. Mission Bay has been tied up for more than 20 years and there's bound to be lots of criticism. Environmental groups are saying the project with over tax the sewer system (cdx is offering 5mm to compensate); the project will impact the creek (cdx is being compromising here too) and probably most important, some are demanding a larger number of subsidized housing units. Here the project already includes lots, but there is an attempt to get more. Still, the criticism has been very muted, considering the norm in sf politics. the fact that brown is a supporter really helps. In fact, it is the key point. He wants it and the pressure groups can only have effect through the democratic party, which he controls. Rising is very effective in these situations as well. He doesn't ride into town, capitalist rhetoric blazing. He knows how to give a little and get a lot. I'm going to buy some more
I've watched the beauratic shennagins about Mission Bay for almost 20 years. Additionally Nell is correct about residential real estate having turned around. Until just about 7 - 9 months ago, there was no market for homes over $200k in Orange County -- but it has been going wild since then. We're looking to sell our $2.8k home later this year on advice of a close friend. If CDX is holding this kind of property, which they may well be, it makes sense to project 3q or 4q residential sales. Wish I had the spare cash to buy some more right now. :( but, I certainly am happy with what I have, and know it will appreciate in time.
CalPERS (California Public Employees Retirement System) has major holdings which they are liquidating . . . for whatever reason they think is right. As long as this condition exists, the price of CDX will stay right where it is.
CDX has been a disappointment. Here we have the largest land- owner in California, the California economy is hot, the stock market has been spectacular, Mission Bay is cooking, home sales are great. What more does Rising need to make Catellus go? The California pension fund should be breathing down his neck, and still I have to worry about how low CDX is going to go.