MPG Investor

Why Maguire Properties is Going Down

Good point, an option that will probably last a long time. Well I hope you bought too. Bought shares on Dec 31 at 1.46...sold half yesterday at 2.7 just in case. W/ profit locked in, going to hold these a long time...still think it is worth owning at this price due to seperate loans.

Why Maguire Properties is Going Down

Great article, spot on back in August. What's your call for 2009? According to the letter from the former CEO, the loans are not cross-collateralized. If they walk from all their debt and just keep a couple of the properties which have equity, their remaining equity would exceed current market cap. How do you see this playing out? Seems like a good buy if they can walk from the debt.

Why I am Selling Thornburg Mortgage

Bush isn't the issue (at least not for this topic); banks were making rediculous loans and are paying for it as much as consumers. When I bought a house in 2005 in the Bay Area, the bank was more than happy to offer to lend out 100%-115% of the value of the house, little to nothing down. Point it Thornburg is paying for it. Unless you bought in very low, or you really need the cash, or really need the tax loss, there's no point selling now as there isn't much else to lose that hasn't already been lost. That said, they have just over 100 loans out of their 37,000 loan portfolio that may be delinquent or become delinquent, which is stellar. Their recent actions may not have shareholder value in mind but I believe there are still value in the shares. As he said, they are a well run company and those are typically the ones that do best in bad times. Disclosure: I own about 100 shares bought at $2. If in a few years they are back on their feet, you will enjoy the dividend yield that's based on a $1 stock.