Realty Finance, Inc. (RTYFZ.PK)

this stock has bottomed out. I just added this to my real portfolio @ $1.89.
this stock will take off when the real estate market turns around in a year or two. meanwhile, the dividend ( currently 22%) is a huge plus!

Shorting Mortgage Investment.

Arbor, please for God's sake force them to sell. They are trying to sell $300 million in equities while their market cap is only $150 million. I'm really scared, please save my poor portfolio.

The credit crises and morgage meltdown in the U.S. isn't going anywhere this summer and is likely to only get worse. If Bear Sterns couldn't survive what hope is their for the rest of the financial sector. Yes, the financial sector seems to be jumping back and key reversals seem to be lifting bullish investors, but this ray of hope will end once investors understand how bad this looming recession is going to be. Even the hopeful and growing few in the financial sector are going to suffer from the troubles of the many.

Their liquidity position has improved significantly. Write-offs have been accounted for and reserves are in place.

They have engaged Goldman Sachs to "evaluate a wide range of strategic and operational initiatives to enhance shareholder value."

As of close of business on 12/31/07, this was a 5-star Morningstar stock that was trading at less than half it's Morningstar fair value.

mortgage investment

US dollar crushed. This leads to higher interest rates. Dow Titans will be the beneficiaries as the Chinians & Arabs replace maturing treasuries with intrrinsic value equities. Higher rates will benefit CBF as their margins will dramatically improve. Economy slows but avoids recession. Companies like WB, HCBK, and even a CBF will be survivors. Valuations will follow returns of the broader averages in terms of stock price but with a CBF you get an enhanced return on the capoital gain over 15 months with a generous(non-qualified) dividend.

CBRE's ability to meet Wachovia's $26.7M margin call in AUG, coupled with the Board's 3d QTR dividend call ($0.17/sh; 10.3% DIV Yield) indicate that the company is weathering the ongoing credit crisis in good form.

The current stock price fully reflects the 2 non-performing assets on their books and it seems that the liklihood of further defaults is low.

While the comercial realestate market will likely see very modest near-term growth, CBRE is well poised to leverage its relationship with CBRE/Melody and has the potential to significantly expand its loan origination business.

Finally, recent strong insider buying (as commented on by others) reinforces the view that CBRE is trading below full value and represents a significant buying opportunity at its current price (although I liked it even better below $6!)

-shares are being bought by financial institutions

keep in mind that CBF mainly focuses on *commercial* real estate related loans and securities. Target price by FYE: $8.

Good management large insider buying going on. Im buying and will hold.

I think we're going to start seeing the real estate market make a comeback.

this company is in niche commercial realty financing space. It has been unfairly knocked down in the sub-prime fiasco. It has good dividend that is increasing, and a good price/book ratio of below 1! Plus, guru investors such as BAMCO are in. This one is a steal below $10.

no way this sector out performs the market, an argument could be made for shorting almost the entire sector. Cramer advises buying puts on about every mortgage and housing play out there. But at the very least will underperofm the market.

CBF is a specialty finance company that has been indiscriminately killed in the marketplace. The company, trading below 0.8x book value, has several catalysts coming that will propel the stock over the next 6 months to 1.1x book. With a dividend in the middle, you are looking at 50% returns in 6 months.

The company is a lender to COMMERCIAL real estate borrowers and makes investments in COMMERCIAL real estate loans. I make the "commercial" point because it is being treated as if it was subprime. Right now, commercial real estate is far and away healthier than residential (although i don't expect this to last). The stock, after coming public earlier this year, was punished as two of the company's condo-conversion loans went bad. This scared away all investors, especially so early in the company's public history. Furthermore, origination volume has been weak during a time when the industry is enjoying tremendous origination volume. Lastly, the CEO was fired in April for lack of performance, leaving the company in the able hands of Ray Wirta in the interim. So why buy this stock?

First, the condo loan problems are one-off, not systemic in the portfolio. (In fact, they only have one other condo loan, in NYC). Credit has not been an issue for the company since, and I would expect management to be more careful going forward. Also, the loans they took over, while maybe not worth 100% face value, will definitely be worth at least 75% of face once CBF is done mitigating the loans. As for origination volume, that has been the steady problem. However, removing the CEO is the first step in the right direction. Also, CBF's relationship with CB Richard Ellis (its manager) should help push volumes its way. I would expect the second half to be much stronger. Lastly, the CEO hiring can only be a positive catalyst at this point.

I'm not making a bull case for commercial RE for the next 24 months, but I think the next 6-9 months will be good for this company. At its current valuation, it's time to go shopping. Build positions here and start taking profits as the stock goes above $13.

Two insiders purchased over $3.5 million worth of stock on the open market so far this month. Sounds like they have confidence in their company's prospects.

CBRE Realty Finance (CBF) is a mortgage real estate investment trust (REIT). The company’s business primarily focuses on originating, acquiring, investing, financing and managing a diversified portfolio of commercial real estate-related loans and securities.

The United States commercial real estate industry has witnessed lucrative property-level returns, as a result of which it attracted a huge amount of investment capital. Moreover, the decline in default rates on commercial mortgages nationally has spurred of the demand for commercial real estate loans, this is clearly reflected from the fact that total Commercial Mortgage-Backed Securities issuance has been increased by 11.8% for fiscal 2006. With improving occupancy levels, rising rental rates in commercial real estate combined with Federal Reserve’s decision to leave the interest rates unchanged at 5.25% will have a positive impact on mortgage REITs earnings in 2007.

For the fiscal 2006, the company originated $1.04 billion of new investments of which 63% were sourced through its affiliated CBRE/Melody network. The company debt investments generated income of $64.6 million. It’s total investment portfolio shoot up to $1.37 billion for fiscal 2006, when compared to $538.1 million last year. The company’s loan portfolio has a weighted average maturity of 3.4 years and a weighted average loan-to-value ratio of 69%, much below the industry standard of 80%.

A stable interest rate scenario should enable the company to achieve its fiscal 2007 adjusted funds from operations (AFFO) guidance of around $1.10-$1.20 per share, an increase of at least 20.9% when compared to fiscal 2006. These positive aspects should make investing in CBRE a worthwhile option.

undervalued