Well, when the stock price of Forest City Enterprises hit $3.42 six weeks ago, I observed that it was "headed for oblivion or it's a very good buy."
That latter has proven accurate in the short term (but not for those who bought it at $50 a year ago). Yesterday, the stock rose $1.87 to $8.49, a 28.25% rise. Four other firms in the property management sector rose (nearly) 15% or more.
Forest City stock began to rise after noon. Perhaps not coincidentally, the developer issued a press release stating that the Forest City-New East Baltimore Partnership had a new tenant at the Science + Technology Park at Johns Hopkins: the Brain Sciences Institute of the Johns Hopkins University School of Medicine.
But a deal to occupy 25,000 square feet of office space isn't enough to move the market that much. Perhaps some institutional investors were making decisions.
That latter has proven accurate in the short term (but not for those who bought it at $50 a year ago). Yesterday, the stock rose $1.87 to $8.49, a 28.25% rise. Four other firms in the property management sector rose (nearly) 15% or more.
Forest City stock began to rise after noon. Perhaps not coincidentally, the developer issued a press release stating that the Forest City-New East Baltimore Partnership had a new tenant at the Science + Technology Park at Johns Hopkins: the Brain Sciences Institute of the Johns Hopkins University School of Medicine.
But a deal to occupy 25,000 square feet of office space isn't enough to move the market that much. Perhaps some institutional investors were making decisions.
I'd caution you to avoid reading to much into these dramatic moves in stock at distressed levels. They tend to be at the mercy of wild swings in sentiment, attract heavy speculative interest, and probably, at this price, become tempting targets for the kind of knuckleheads that congregate at finance message boards.
ReplyDeleteI'm not reading too much into it, but I do think it's worth noting.
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