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$78.51 11.15 (16.55%)
10/10/2008 4:03 PM

Simon Property Group, Inc. (SPG)

CAPS Rating:
*

A self-administered and self-managed real estate investment trust, engaged primarily in the ownership, development, and management of retail real estate, primarily regional malls, Premium Outlet® centers and community/lifestyle centers.

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Avatar SpaceMonkey01 (< 20) Submitted: 6/01/08 5:27 AM : Underperform Start Price: $99.15 SPG Score: -16.26

Let's see here:

A business tied directly to a pinched U.S. consumer-- a REIT that deals in malls. No thanks.

Trading at 50 P/E ratio and 8x book value....way overbought. Rochdale has a fair value of $39.

Declining earnings and projected declining earnings thru 2008...projected return to earnings growth in 2009, but I would not bet on it.

A dividend play? 3.6% taxed at regular income tax rates? If I want to play dividends, I'll take a Canadian oil sands player paying 12%+ dividends.

It amazes me that analysts still have a buy rating on this dog. Zacks (who I use and like) says this is a buy up to $106. I just don't see it.

I'll ride this one down to 70.







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