Saturday, October 03, 2009

MaryAnne Gilmartin's very good investment advice (so far)

On July 22, at the first community information session, Forest City Ratner's MaryAnne Gilmartin said that “we have assets that are, in our opinion, worth many times more” than the current stock price.

I called it a bit of a stock tip and, if you followed it, you would have done quite well. On July 22, the stock (FCEA) of parent Forest City Enterprises, was at $6.94. Yesterday, even after two days of deep percentage drops, the stock closed at $11.76.

That doesn't mean long-time stockholders are in the clear, given that stock's 52-week high was $29.47 and the stock neared $70 in 2007. It all depends on the timing. (Click to enlarge three-month price chart.)


  1. I'm going to detect a very dry note of sarcasm here. It's almost a corporate commonplace to say that your stock price doesn't reflect the price of your underlying assets. Needless to say, they never observe the opposite phenomenon when it comes to their stock. The general rise in the stock market (the S&P 500 is up 15%) over the last quarter is partly responsible, though in FCE's defense, it's outperforming both the S&P and most specialist real estate indices and etfs.

  2. shorting at 13.95 would have been good too.