Hat tip to Zero Hedge for this. Regular readers know we own a bunch of General Growth Properties (GGWPQ) at $.49. It currently trades at $1.60 today and if Ackman is right, it is still a stunning value.
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5 replies on “Ackman: General Growth "worth $20 to $35"”
can anyone post a non scribd link of the pdf? I’d be much appreciated.
under the “more” tab on the document you can save it to your computer and then convert to word or .pdf if you want.
rwmcpar might be asking for a seperate link, because some work places block out scribd.
yeah, its getting filtered out. no worries, i can get at it when i get home. I’ve got some other things to read on the ride home.
I find it amusing that the story Bill Ackman tells the press and the general public is very different from what he tells current investors in Pershing Square. In his fund he owns a tiny portion of the assets in GGP stock and a larger amount in the debt of a subsidiary of GGP, which trades at a big discount and he believes will be money good. He sees the GGP stock as an option with ~50% of being worth zero and ~50% chance of being worth many times its current value.
He is not 100% right in saying that when assets are greater than liabilities, the value of the equity is not zero after bankruptcy. In fact, bankruptcy is caused by a cash crisis, not a valuation one. There are numerous cases where the assets were worth more but equity ended being wiped out or almost wiped out; creditors won the battle in court. Recent examples that come to mind were Calpine and Leap Wireless. Just see how their stocks appreciated after they emerged from bankruptcy and the enterprise valuation they reached.