OTCPK:HBAYF - Post by User
Comment by
seatleslimon Dec 13, 2017 12:53pm
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Post# 27148052
RE:RE:RE:RE:Although there is a handful of Litt supporters
RE:RE:RE:RE:Although there is a handful of Litt supportersI haven’t heard anyone characterize the real estate as a magic answer. I don’t think the real estate is even opaque like it would be for a collection of anchor pads in traditional malls. You can dispute whether the values are the same as when they were appraised or when the relevant transactions took place. In my opinion, those estimates are reasonable if not understated since they don’t take imto account alternative uses, as the L&T deal demonstrated. Also, those properties are not highly leveraged.
Neither have I heard anyon say that Litt would be a savior. He is what he is: an activist manager, who pursuant with a business plan he markets to is own customer, spots what he believes to be undervalued situations that are correctable by actions that management is not taking.
The real estate perhaps of interest to those trying to make a base case in measuring the undervaluation of this company by the stock market. Baker is first and foremost a real estate man and in fact runs a retail reit with one of the highest valuations in the us. I worry less about his competency than wether his objective are aligned with shareholders - will he try a take under?
It it will be interesting to see if baker squanders the massive value (relatively modestly leveraged) in the real estate assets to sustain some quixotic business plan on the retail. I don’t think he will do that, nor do I believe that the retail is worth zero or less.
I am attracted to this situation for some of the very Hyberbole that can be found on this board, the sentiment of which can be seen in the stock price. 10.60 is very cheap. 8 to throw out a number is even cheaper and better.
For those that that don’t understand why this stock is cheap or has gone down so much, it’s probably not an appropriate investment. I believe the real estate Nav is a minimum value, but will take a few years to realize. If I were surprised and were offered 20 tomorrow I would take it (my guess is that is the likelier outcome. ).