Maguire Properties, Inc. (MPG)

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.

The Maguire earnings release, unlike some other companies where the bad and good intermingle and a balance detector is needed, is clearly all red ink and I can't find what made the investors so excited (rational or irrational). 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?? "Net loss available to common stockholders for the quarter ended September 30, 2009 was $(46.8) million, or $(0.97) per share". (ON a company with a NEGATIVE $8 book value and net negative tangible assets).

MPG has been able to shed some of their troublesome properties by giving back the properties to the banks under the terms of their non-recourse loans. Now, with a portfolio of properties acquired before the real estate run-up, their prospects look better.