After days of valuation chaos, William Ackman, the founder of Pershing Square Capital Management, released a detailed report on General Growth Properties, highlighting the upside potential of the REIT and responding with vigor to the misleading valuation from Hovde Capital Advisors. What’s genius about it is the timing. Few days ago, the Court approved a dividend the payment of 0.19 dollars a share for holders of record December 28, in order for the REIT to maintain its tax status. Today was the last day to buy the stock and still get the dividend in January 28 2010, as it will trades ex-dividend tomorrow. Realizing this, the shorts had to cover and longs had to buy, which magnified the effect of the report. It was just genius. I hope you can appreciate this reading as much as I did.
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