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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (31486)	7/14/2008 1:10:19 PM
From: Madharry	Respond to of 78625

I took a flier on wm. the first bank failed . i think wm can survive. after all it just raised $7 billion in cash in april. I think the risk return makes sense but I could be wrong.

To: Paul Senior who wrote (31486)	7/14/2008 1:45:42 PM
From: Grommit	Read Replies (1) \| Respond to of 78625

I also added BDN earlier this AM. And just 2x my AFC, now holding a minor portion. And started minor portion of SKF also. I hope I am late and it drops.

To: Paul Senior who wrote (31486)	7/16/2008 1:32:02 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78625

re BDN I would recommend to be careful with BDN. leverage is simply too high and the valuation in terms of EBITDA/EV is not favorable. Basically BDN trades at 12x EV/EBITDA. Since most of the EV consists of debt (3B$ Debt 1.2B$ market cap), the lower equity prices do not improve this ratio a lot. now they are trying to reduce leverage (because cost of capital is going up) which so far has led to writeoffs. I take this as an indication that the assets on BDN's balance sheet are not undervalued. HRP seems like a better deal. there EV/EBITDA ratio is about 10.4 which is approx. 15% less than BDN. They deploy less leverage and they were also able to sell some properties for a book value gain. The analysis below is still mostly correct. Just looking at market cap/FFO does not cut it in a capital constraint environment. Same is true for some hotel REITS. I warned out AHT which also was not cheap enough in terms of EV/EBITDA. their future looks bleak, IMO. Message 23730103