Thursday, September 23, 2010

Inland American Valuation Is $8.03 Per Share
I am traveling and completing research reports, so I will post more on this valuation over the weekend.  Inland American announced this afternoon that an original $10.00 per share investment in the REIT is now worth $8.03.  That is an amazing valuation.  If you figure that 15% of the REIT's initial value was lost to offering costs, the REIT only lost about 5% of its value in the worst commercial real estate market in years.  Who would have thought that the Inland American's focus on hotels and retail properties - two of the worst performing commercial real estate sectors during the slump - in 2006 through 2008 would have proved so prescient.  Somehow Inland American eluded the decline in a commercial real estate market that has lost over 40% of its value from its peak.


Anonymous said...

Fantastic (based on fantasy) valuation may be more accurate than amazing. The CMG tender was for $4/share.

Anonymous said...

CMG's price is not a "valuation", it's how much they would like to buy your shares for.

Basically, the take advantage of people who shouldn't be investing in the first place, scare them, and steal their money.

I'd believe Inland American, their investments haven't returned a loss in 35 years... and CMG knows it.

Anonymous said...

Further, this is how CMG works:

Please note that CMG clearly states in their offers:
• CMG is seeking to acquire shares for investment purposes only.
• CMG’s offer price was determined by applying a discount to CMG’s own estimated
value of your shares, although they are not qualified real estate appraisers.
• CMG believes that the company’s shares are worth more than the offer price.

Basically they:
1) Scare
2) Lowball
3) Hope the suckers sell

It's easy money for CMG, no risk to them whatsoever.