The company is a real estate company that owns, manages, leases, acquires and develops real estate located in: the greater Los Angeles area of California; Orange County, California; San Diego, California; and Denver, Colorado.
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Here I go on my fourth call on Maguire, violating my rule of not downthumbing viable companies that have less than a $5 share price. UltraLong tempted me and then again, there's my definition of "viable companies". Downthumbing real companies sub-$5 can be harmful to your caps score. The multiplier, should the equity spike due to a drunken Mr. Market can exhaborate the throbbing red thumb. Still, and again, Mr. Market drunken stupor or not, I can't resist Maguire. I last red thumbed them in November after a similar spike as they had today. Sub $5 stocks that use to be $20 seem to be Mr. Market's passion for a get rich scheme. Nevermind that in the last two years the equity has bled pretty much all the blood it can spare. I do agree that bankruptcy for some companies has become a non-event as even Banks don't want to hold the assets the company holds!
Maguire Properties share price spike today is addional proof, (as I posted with ABK) that investors can't read quarterly reports. It's also another chance for the irrational market to slam a hammer on my red thumb and make it throb, but I'm willing to take that risk under these conditions. I really didn't expect Maguire to hit that $100 Million market cap again here on caps, at least not in the current decade. Just the phrase "owning and operating high-quality office properties in the Southern California market" should make someone shudder.
I can't believe that Maguire's earnings report on March 22nd will be anything special. I can't see that even if slightly positive that it would make Maguire investor grade. NEGATIVE $12 EPS, NEGATIVE $9.60 book value, Heavy Debt, $4.5 Billion), dubious locations for it's rental properties, (California). As a property/lease manager, Maguire is shedding some some properties, both to raise funds and to limit exposure. Selling your better assets to raise funds reduces future potential, but who wants the bad assets?? " Additional financing is due in May. Again, Maguire may find ways to stave off reluctant bond/lien holders, but why invest here until they get thier finances in order?
Again, downthumbing anything sub $5 can be painful. Some players say there are more points in downthumbing here on CAPS than upthumbs. I highly disagree, but I won't debate it here, other than to suggest looking at what happened to red thumbs on companies like TEN that were made when it was sub $3. It would take me 30 successful Red thumbs to recoup that.
Lost $5.48 per share fourth quarter. Including $290 Million on properties it defaulted on last year. It stopped paying on six Southern California properties that it owes $888 Million on. Wow, Debt load is improving, down to $3.5 Billion from $5 Billion a year ago. Guess that happens when you default on property and don't own it anymore, nor did you get any money from it. The six Southern California properties are for sale...wonder if they are "underwater"...may as well be!
$200 Million of cash on hand, (after selling two properties) isn't likely to go very far. The only reason they are not bankrupt is because the majority of their properties is under separate mortgages. I would be very surprised if they are pickable on CAPs a week from now.
You called it... thumbdowning a viable company that have less than a $5 share price is really harmful to your caps score.
Yes, I should know better. I'll let this one ride, however and keep a close eye on it. Mr. Market may let it slip as time goes on while looking for greener pastures. Great call on your part on REIT's. I've been holding NRF since $2.67 and collecting the $0.40 per year dividend, but I couldn't risk more than one REIT, although I've been in and out of PLD a few times and keep a close eye on it.
I call my plays like I see them. When they don't work out they are great research material for me. I'm here to learn, and if you don't fall down once in a while or if you refuse to get back up, then your learning is limited!
Good luck!
Sell those assets, give away anything you need to to get them off the books. Don't make payments on anything. Negotiate, renegotiate. There are only a handful of assets making any money and those losing are draining the company. I fail to see how Maguire will recover, but it's one of the "most" played stocks I've seen by optimists who believe every company is worth what it was two years ago.