If you have a $100,000 federally insured balance at a given bank, but the ATM machine is broken, how much is the balance worth? Would you buy another depositor's identical account, if he was willing to sell it at a substantial discount because of the broken ATM? What if you are in no rush to withdraw any money and you know that the machine will be fixed soon?
This is the situation that presented us in the form of Gramercy Capital (GKK), a net lease REIT that has temporarily suspended its dividend. Because there is no current yield, it is trading at a substantial discount to where we expect it to trade when the ATM machine is fixed and dividends...
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