• Chris DeMuth Jr.
    Any thoughts regarding $SBY as a takeover candidate?
    3/28/13
    Reply (13)
    • SafisKusai: I think my worry here, is that with companies like blackstone and other PE and hedgies buying residential RE worth $100mil+ a week,
      3/28/13
    • SafisKusai: and with inventories starting to fall dramatically, rents will eventually fall hard as well. However with that much money changing hands
      3/28/13
    • SafisKusai: its definitely possible, $TWO is a well run company and this is their baby and this spinoff creates a motivated seller
      3/28/13
    • ValGal: I have looked at this fairly closely and wonder what your opinion is. I have been involved since the private Provident fund.
      4/1/13
    • ValGal: Long story short, the current market value is about equal to the market value of the balalnce sheet.
      4/1/13
    • ValGal: Based on the timing and areas of the home purchases by TH and Provident, I have the $421mm of purchases/remodels worth about $500mm.
      4/1/13
    • ValGal: However, operating numbers have underwhelmed. 17% vacancy on units owned more than 6 months. They have not given a lot of net rental inc
      4/1/13
    • ValGal: data, but i am getting 10.5% gross rental income on RENTED units and <5% net rental income on RENTED units. As well, the 1.5% mgmt
      4/1/13
    • ValGal: agreement is not shrhldr friendly. So, from what i can tell, this is an inefficient way to buy distressed homes, but it is not
      4/1/13
    • ValGal: terribly over-priced relative to market values.
      4/1/13
    • ValGal: I certainly do not think it is another GKK . . . what is your opinion?
      4/1/13
    • Chris DeMuth Jr.: That sounds about right; thanks.
      4/1/13
    • LeahyInvestor: Looks too early for any take over.
      9/26/13