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

To: Paul Senior who wrote (53514)	8/2/2014 3:38:22 PM
From: E_K_S	1 Recommendation Recommended By Mattyice Read Replies (1) \| Respond to of 78710

Re: Campus Crest Communities, Inc. (CCG) - all time low (4 years) Doubled up current position. Sold 66% of the preferred and put those proceeds into the common shares @ $7.93/share. CCG now selling at 70% of stated Book Value. Company missed on estimated FFO by $0.01/share but still make enough to cover their current dividend. Management has to fix their Grove project JV which represents 9 different properties accounting for 60% of their revenues. These properties only have a 76% occupancy combined (some of their smaller deals in the group have over 90%). All of their other 100% owned properties have an occupancy rate of 90% or more. See my write up on the Income Investing thread here. I think there is a better than average risk/reward now with the common shares. The dividend is 8.4% but if/when management fixes their Grove project (w/ divestiture and/or refinance) and get those properties producing FFO equivalent to their other properties, stock could be back up to $11.00/share. That would represent a potential 38% capital gain on the common shares. The fix should take no more than 12 months and they hired a new Executive Vice President to orchestrate this fix. He also bought 100K shares (July 31, 2014) at $8.13/share perhaps showing that he too feels the stock is significantly undervalued at current prices. EKS