Gramercy Capital Corp. (GKK)

Sisyphos (< 20) Submitted: 7/18/08 4:26 PM : Start Price: $8.74 GKK Score: -48.65

The business model with GKK and AFR together is yet unproven so we are in uncharted waters. Yet when I read the company's material I see solid thinking covering a lot of angles. I also see a company that aims not to over reach, yet is looking for growth.


The valuation of this company is currently very low, I wish I had bought my shares at the current levels, and I would have saved a pretty penny there. It seems that the market values the properties bought with AFR to be of negative value - as a real-estate investor I find that weird. Of course I am unable to go and value the premises that GKK got when they made the acquisition so perhaps market players know something that I do not know.


The real point really is this though: if there is no "insider knowledge" on the markets that I am unaware of that has pushed the price to its current levels - then this stock is at the moment grossly undervalued and I see some very posive gains ahead from the corporation.


It often feels, that when one sees a stock drop for extended periods - a stock that he has valued to a certain level - then one starts to doubt himself: "what did I get wrong, what am I not getting". Sometimes the answer is that one really did not know something or one misjudged some aspect. At the other times Mr Market is just not feeling happy on those days, and what was of good value some time ago, is still cheaper today. I think that these small caps are just being killed these days as none has the energy to concentrate on them.

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