Arbor Realty
July 12, 2010
– Comments (3) |
RELATED TICKERS: ABR
Just bragging. I bought 1000 Shares of Arbor Realty (ABR) @$1.80. Now Arbor is at $6.50!!! You gotta love having that one winner in your portfolio that makes up for all the other sh*t you bought in 2009.
But I'm still not selling. Although the write-downs in 2008-2009-2010 were horrible, Wachovia reducing Arbor's debt by $350 million and Arbor using the large cash reserves it cleverly built up from 2007-2008 + monetizing its equity kickers for more cash enabled Arbor to buy a substaintial amount of its own debt back at a discount.
Although the value of Arbor's real estate portfolio is doing poorly, the actual income being generated by the properties is fair and stable. Arbor's creative approaches to its debt have made it look like a bad investment over the past year, but people are now realizing how good of a strategic move it was in the long-term. Arbor still has access to tons of liquidity through their equity kickers and financing from Wachovia and other banks. This should keep them out of trouble in the case of a "double dip" and/or enable them to buy properties on the cheap when the time is right.
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