Monthly Archives: November 2015

NorthStar Realty Europe’s Curious Buyback

NRE logo - CopyIt’s one of the strangest buyback announcements I’ve ever seen. NorthStar Realty Europe (NRE) has authorized the repurchase of $100 million of its common stock. This is tremendously unusual, since companies typically let the market take care of the mispricing of their stock, especially right after a spinoff. Of course, it’s also highly unusual for a REIT to authorize a stock repurchase, but sister REIT NorthStar Realty Finance (NRF) also authorized a buyback, for $500 million. So why the strange step? Continue reading NorthStar Realty Europe’s Curious Buyback

Copart Makes a Tender Offer

CopartIt’s official – Copart (CPRT) has made a tender offer. The company is offering to purchase up to 8.1% of its stock at a price between $38 and $41 per share. With the stock now at $39.66, there’s no chance of a risk-free profit here, however, and the spread has quickly narrowed even at the top end. So those investors looking for a quick buck and who didn’t already on the stock, they’re probably out of luck. But the tender offer does have my favorite provision for small shareholders, the odd lot provision. Continue reading Copart Makes a Tender Offer

John Malone Speaks to CNBC

120px-Liberty_Media.svgHead of the Liberty empire John Malone sat down with CNBC’s David Faber for a long interview on the state of the media industry and the various Liberty companies in particular. It’s always interesting to hear what one of the world’s most successful investors has to say, and this time was no different. You can check out the full video at CNBC’s site here. If you’re a John Malone junkie, you won’t be disappointed.

NorthStar Realty Finance – Where’s the Downgrade, Bro?

NRF imageA couple days ago I lambasted KBW’s analyst for what seemed like a rather arbitrary discount applied to NorthStar Realty Finance (NRF). (You can see the original post here.) The analyst determined a figure of net asset value of $32.08 per share, whereas management reported in its filing last week that it estimated NAV at $29.07. So where’s the downgrade, bro? Continue reading NorthStar Realty Finance – Where’s the Downgrade, Bro?

Liberty Has Moves Like Jagger

120px-Liberty_Media.svgNobody knows how to make corporate moves like John Malone. The chairman of the Liberty empire is at it again, with a series of new transactions at two of his Liberty enterprises. Liberty Media (LMCA) announced that it was splitting into three tracking stocks, while separately Liberty Interactive (QVCA)(LVNTA) announced that it was spinning off two businesses. If all that weren’t complex enough, the Liberty Media transaction also has a rights offering attached to it. Continue reading Liberty Has Moves Like Jagger

NorthStar Realty Finally Gets Serious – A Little

NRF imageIt looks like management at NorthStar Realty Finance (NRF) is finally getting serious about moving its stock up. They’ve begun a series of disclosures that probably already should have been in place years ago, such as breaking out NOI by property type in the press release, but now they’ve also included NAV in their latest quarterly supplemental. Will that help to stem the very irrational selling that’s hammered the stock in recent months? Only if they back it up with buying back stock and shoring up that dividend. Here’s how a strong buyback would save the stock. Continue reading NorthStar Realty Finally Gets Serious – A Little

NCR Gets in the Tender Offer Game

NCRNCR’s (NCR) undertaking a tender offer now too. The company is offering to buy up to $1 billion of its own stock at a price between $26 and $29.50 per share. That’s good for up to 22.6% of its stock, if an overallotment of 2% is allowed. With the stock now at $26.42, there’s no chance of a risk-free profit here, however. And that makes it disadvantageous for investors who want to participate in the tender but didn’t own shares before the announcement. So it’s not my favorite type of tender. Still, the offer does have advantages for small shareholders. Continue reading NCR Gets in the Tender Offer Game

NorthStar Realty Finance – Some Kind of Joke?

NRF imageAh, sell-side analysts… All the information but no ability to use it, like a kid in a brothel. I was stunned when I read the recent KBW analysis of NorthStar Realty Finance (NRF) following the third quarter report. I was stunned not so much for its estimate of net asset value, but rather the analyst’s price target. I simply cannot fathom the rationalization, given the inputs. Continue reading NorthStar Realty Finance – Some Kind of Joke?

McDonald’s Nixes REIT Spinoff

mcd_800x800-200x140The news probably irritated a number of activist investors, but McDonald’s (MCD) has decided not to spin off its substantial property holdings into a standalone REIT. Activists have been pushing for some time to get the fast food chain to break apart into a real estate trust and a restaurant operator. That’s probably ultimately better news for long-term shareholders. Continue reading McDonald’s Nixes REIT Spinoff

Darden Spins Off Four Corners REIT

DardenTuesday marked the debut of Four Corners Property Trust (FCPT), the REIT spun off by Darden Restaurants (DRI). Shareholders received one share in Four Corners for every three shares of Darden that they owned. So how interesting does this spinoff look anyway? Continue reading Darden Spins Off Four Corners REIT