December 26, 2008
Forest City Enterprises "astonished and appalled" at Morningstar for calling stock worthless
Atlantic Yards Report
Norman Oder analyzes the debate over the value of Forest City Enterprises' stock.
I don't know whether Morningstar typically contacts senior-level executives before issuing such a dramatic assessment, but Forest City's grievance seems reasonable. (If only they would reciprocally answer questions from the press themselves.)
The analysts who are neutral or slightly positive on the stock should count for something--indeed, the consensus among five analysts tracked by Yahoo is 2 on a scale of 1 (Buy) to 5 (Sell), with two at Strong Buy, one at Buy, and two at Hold. The analysts haven't exactly distinguished themselves by publicly asking hard questions of the company. But I think neither they nor Morningstar based their reports on a close look at Atlantic Yards.
Maybe they and the Morningstar analyst could put their cards on the table and have a debate.
NoLandGrab: Wonder what rating these analysts had on FCE stock 18 months ago, when it was trading above $70.
Posted by eric at December 26, 2008 8:08 AM