DISQUS

Market Folly: The Prominent Investor Stamp of Approval: Boosting Company Image & Market Perception

  • sami · 6 months ago
    may be it has nothing to do with Paulson per se, but because CBG is deleveraging its balance sheet. CBG raised equity and extended debt maturities before and it was up on that news as well.

    Check most CRE and reits at the announcement of equity raise. they jump some 20%. There is higher multiple on less leverage. Paulson investment I think has nothing to do with it.
  • marketfolly · 6 months ago
    hey sami thanks for the comment. very well may be true that it was up on that news rather than Paulson, but we'll never fully know... we'd guess that its a combination of both.

    I think the 20% jumps after the equity raises was mainly provoked by short covering though. After all, REITs were one of the more massively shorted sectors earlier this year.