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

To: Jurgis Bekepuris who wrote (52271)	8/30/2013 9:46:43 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78740

Re CSG - yes it could be a relative value. I compare it with other triple net Reits like NNN and O, which trade T 16x FFO, while CSG is around 11.5-12x. It certainly looks cheap on a relative base, as well as cheap on the funds raised, but it certainly could get cheaper. That is apparently what the sellers are thinking. I am thinking that an existing triple net could buy them out, as it would be accretive to them to capture the valuation gap. But that again is a relative valuation call, not an absolute one. The triple net's like O and NNN still trade at a premium to NAV, as they are priced on dividend growth rates apparently.