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April 17, 2009

Forest City Enterprises stock rebounds

Atlantic Yards Report

Forest City Enterprises stock, which in late March had sunk below $4 a share, has more than doubled, closing yesterday at $8.23. That's still well more than 80% below the peak in recent years, but it's a major short-term gain, especially since Morningstar has said the stock is worthless.

The comeback did not begin dramatically after the developer released earnings results March 30, but rather picked up steam a little later.

While part of the recovery may be tied to the general rise in the market, it also may reflect new confidence in the company. The Motley Fool reports:
[S]ome of the smartest minds in the business are trolling through the wreckage of this market turmoil and picking up some of the pieces. All-star mutual fund manager Marty Whitman recently added to his position in real estate operating company Forest City Enterprises (NYSE: FCE-A)...

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NoLandGrab: There's no disputing that someone with the foresight to have purchased FCE shares two weeks ago would have made some money, but we should point out that Marty Whitman's Third Avenue Value Fund has been by far the biggest holder of the company's shares for many years.

Posted by eric at April 17, 2009 9:59 AM