Reggie Middleton

A Model Valuation of GGP

The writings in "my" analysis states clearly:

"However if we expect GGP to raise additional capital of $1.75 billion through private placement, GGP’s valuation increases to around $7.7 billion due to savings in interest expenses. However as a result of the dilutive effect (due to the increase in shares outstanding) GGP’s per share valuation declines to $26.5 (under our base case assumption), implying a further downward potential of 35.3%."

Thus, not only did we take into consideration the equity captial infusion, we took it at 2x what actually occured. These numbers are very conservative. I hope you would read a little more carefully before being so critical.

I diluted the guest commentators numbers to reflect the equity dilution and you are right in that I didn't include the funds from the offering explicitly - which is why the they are "comments" in italics and the original commentary and numbers are there for all to see and agree or disagree with as all deem fit.

I very rarely get around to commenting on Seeking Alpha, so anyone who has questions or comments that they actually wish to be addressed should direct them to my blog, boombustblog.com. I will be glad to engage you there where I appear on a regular basis.