Northstar Realty Finance Corp. (NRF)

Holy dividend batman! Great P/E ratio and I really think the worst is behind them. Real estate is slowly coming back up and while management pay is high, management is quite apt. Bullish on this quite long term, targeting $7-$10.

.5

Getting undervalued real estate will pay off soon enough.

Mainly depends on their exposure to commercial property in areas where job losses have been the greatest, and if they can avoid foreclosure losses people will flock to this for the div, but do not expect the '07 highs. Closer to the $8 range.

Piotrosky

The only reasonable negative comment I’ve heard so far about NRF is about Hamamoto’s compensation ($3.15m). Other than that… The financials strong, they are paying down debt, the company is very well managed, large internal ownership, excellent dividends (including one due to come out this month I believe), and it’s price has been beaten down to a nub.

From Q1 2009 Earnings Call Transcript: "With the strength of our balance sheet and diversity of our real estate investment platform creates opportunities to prospectively make outstanding investments that generate exceptional returns." I believe Hamamoto is not only right about that statement, but that NRF is very unique in its class in this regard.

Personally, I’m adding this to my ROTH IRA. At this price it seems foolish (lowercase) not to. There’s no doubt in my mind that this is a long term winner. At 3.50 a share and the prospect of dividends returning to their normal .36/quarter in a tax sheltered account... it’s too sweet of a deal to pass up.

anything in realty and/or finance is an accident waiting to happen. Being $2B in debt is not good either. (The book value of 18.15 vs. stock price of 3.49 is mathemagical - if they can't sell their assets, their book value may as well be zero!)

It might be bought up by someone, but not before the value drops further.

The first of many reloads as this is a short to zero.

NRF might be the best play in REIT's at the moment. Unlike most of the others, book value over the past 4 years or so has be going up(Not taking into account current mark/market valuation), they have a nice cash balance and sufficient assets to take advantage of distressed opportunities, and they have heavy insider ownership. The CEO hasn't sold a single share. My only qualm is Hammomoto's salary- 3.5m. IMO, in this environment, he should slash his salary by at least 2/3rds in support of shareholder interests. If he did that, his large stake in the company would have more meaning. Regardless, from a balance sheet and business plan perspective, NRF is the best play going. On the next run up in the real estate markets, based on NRF's continually growing book value, look for them to make new all time highs. When that'll come is anyones guess, but I'd say 5-7 years would be a reasonable time frame.

JBB, M.D.

Commercial Reit.

Because it is a "realty" stock, market is unncessarily punishing it.

Although there is risk associated with this type of company, in the mid-term I believe this stock will perform well.

This stock is incredibly undervalued. The P/E and P/B ratios are extremely attractive. Right now, it's taking a hit because of the anxiety generated by real estate and financial situations, but that will change in due course and this one will shoot up.

Low price to book and price to operating cash flow.

Adding a little diversification to my portfolio. Hopefully, NRF made some sound investment decisions and will benefit in the economic and real estate rebound.

Hoping for a real estate bounce but will enjoy the healthy dividend in the mean time.

REIT. I am not a fan of REIT's typically especially due to the real estate crash, but this stock has held up great. Portfolio looks solid and returns continue to climb. Fundementals and numbers look solid. Div yield is strong and looks to continue.

why not?

div>3%, profit margin>10%, p/e no more than 5, p/book no more than 5, p/sales no more than 20