Seeking Alpha
Editor's notes: CBL's stock has suffered corollary damage from J.C. Penney's woes, but REIT expert Dane Bowler sees this as an opportunity whether the retailer turns things around or not. 35% upside.

The Buy Thesis

CBL & Associates (CBL) trades at a substantially lower multiple, relative to peers, than it should. There are two aspects in particular that we believe the market is mispricing.

  1. J.C. Penney's (JCP) contracts with CBL are at risk and viewed as a net loss, but are actually an opportunity.
  2. CBL's valuation is being overly punished for the age of their properties.

We view each of these as a positive catalyst going forward as the correction of the market's perception would lead to multiple expansion. Let us examine each catalyst in more detail.

Catalyst #1: Turmoil at JCP

There is a fair amount of debate about the future of JCP and its implications reach...

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