Gramercy Capital Corp. (GKK)

Well thanks to the increase in home sales courtesy of the $8000 dollars tax credit, Gramercy Capitol should post a third quarter profit. Smart money is buying now @ $3.00-$3.50 with an average target of $5.00 within six weeks:-)

Goner.

$1.50

price to book is great. They could pull through and 2007 highs of 35 dollars could arrive again in the far future.

Some risk, but possible multi bagger.

I got nothing on this... I own it in real life

im laughin strait to the bank with this.

Gamble

reit play

Gross devaluation has reduced this stock to a Price to Book ratio of .2. Make no mistake, profits were posted this quarter solely thanks to amendments accounting rules and slick "earnings magic" that should be despised and mistrusted. However, present market conditions and free cash flow losses would have to persist for a period of four to five years before the intrinsic value of this stock would match current price levels.

Very strong company. Loads of cash on hand. Very little debt. BUY!BUY! Very under valued stock. I see it rebounding to the $18- 23 dollar range with in the next couple months since housing is starting to turn around. Get it while you can at this cheap price, because it wont last long.

very beat down stock. I use to own AFR, but when GKK bought AFR GKK was trading at $20 per share. Now its down to $2.00

so I will roll the dice here

This looks so healthy and traditionally has been very profitable. No major debts, plenty of assets and dirt cheap!

Recently released earnings show the company is still profitable and has considerable assets. It should be able to weather the temporary financial storm with its new internal management agreement and no heavy debts due for a couple of years or more.

Commercial real estate has not suffered the price decline of individual homes. Most of their assets are in strong locations, like NYC.
The AFC assets are leased long term to strong tenants like BAC.

The company will produce consistent earnings, and eventually the market will recognize the company as being undervalued.

I see little down-side in the valuation and limited risk to the earnings.

Despite current low price per share, which has held steady with slight increases, the balance sheet is still firmly in the black. The company has declared a regular .63 quarterly dividend, consistent with past quarters when stock prices were 4 x's as high.

I'm opening a position now and provided they continue with the dividends, I will open another position next quarter. I will have a 37% return and if the share price increases, so will my % return.

PE of 1.31? Never seen that before. Will jump in this head first.

This stock isn't very transparent, and one reason that it has been beaten down so hard is that nobody really knows how much more risk is built into its portfolio. But we are talking commercial real estate, not residential, so its has been beaten down a bit more than deserved. Don't look for this to be a short term winner, but as the smoke clears, look for Gramercy to rise up to the low teens, where I believe its fair value lies.

They've been hit hard by the market's perception that their products are susceptible to subprime damages.

Stock is signifcantly oversold. Lots of short sellers are going to have to buy back. Dividend will be cut but will still be in the .25-.45 range. Possible buy-out from SLG as well.

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.