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July 9, 2009
Slip Slidin' Away
Straphangers, who were hit with major fare increases beginning on June 28th, just about the same time that the board of the Metropolitan Transportation Authority was cutting a new sweetheart deal with developer Bruce Ratner over the MTA's Vanderbilt Yard, aren't the only ones getting the short end of the Forest City stick these days.
Investors who bought up the 52.3 million new shares of Forest City Enterprises' Class A stock floated by the company in May, at $6.60 per share, are also feeling pinched. With trading of FCE-A shares closing today at a flat $5, those investors have thus far lost a smidgen less than 25% of their money. Not bad for a few weeks' work.
If it's any solace to those misguided investors — and admittedly, it's hard to find a silver lining when tacking on a 25% loss on top of the hammering the stock market has taken the past year — Ratner family members reportedly purchased about $20 million worth of those shares sold in May.
So at least they're feeling your pain at the same time they're causing it.
Posted by eric at July 9, 2009 4:49 PM