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General Growth Properties, Inc Message Board

  • benyeong benyeong May 23, 2013 5:28 PM Flag

    GGP, HHC, #$%$ ... why did Ackman's babies shed more blood than the rest?

    The seemingly formidable babies of Ackman - GGP, HHC and #$%$ took a beating yesterday and today after the market selloff. In just 2 days they have lost abt 10%.

    I have no idea why Ackman's stocks suffered more than the rest in the general market. For instance SPG only lost abt 5%.

    Does Ackman's stocks have any correlation with how Herbalife which he shorted perform? Or was it a fact that these 3 stocks have ran ahead of fundamentals in recent weeks?

    Care to share yr views guys?

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    • It's a short term stupid OMG!!!! reaction to the Feds totally predictable announcement that interest rates would be rising, after an buying frenzy that drove GGP up from $20 to $23 when there was no change in consumer buying or GGP management that could justify such an increase.

      If you aren't a day trader, and you're going to invest in a real estate related stock, you have to learn to ignore daily trading prices at volumes close to the average volume. They don't predict a stock's future performance. They don't correlate with its yield over time. What a day's closing price reflects is buy high-sell low sellers and day trader activity, within the small pool of stock that's held by private investors.

      GGP has approx 1B shares outstanding, normal day trading volume is approx 4M, or 0.4% of the outstanding shares. 95.75% of GGPs stock is held by institutions and insiders. They rarely trade, and rarely make rash decisions about their investments. Ackman hasn't sold GGP stock yet, only options. Brookfield is holding fast.

      Small investors could never purchase the total holdings of any one institutional investor. So pay attention to the actual trading _activities_ of large investors like Brookfield, and Ackman, not a specious calculation of their assets "worth" based on the trading behavior of small investors.

    • they ran up pretty fast in the last year,,,profit taking,,,,,,,jmo

    • I am wondering if it has to do with the extra selling pressure from Blackstone exiting its GGP position. They really didn't state in the article whether they already exited its position or if they are still doing it. Any thoughts?

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