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Bargain Real Estate

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Karen Finerman recommended shorting real-estate investment trusts on the way down. But now she's seeing value in the sector.

“I’m currently looking at Maguire Properties ,” Finerman reveals on CNBC’s “Closing Bell.” “It’s been involved in a broken deal and the REIT has discontinued its dividend. Sound good so far,” she jokes.

The thing that’s interesting to Finerman is that a lot of players were in this name for a sale. In other words, traders bought the stock believing it would climb because the company was up for sale.

"That happened in the first 4 months of the year and the timing for the deal couldn’t have been any worse,” she explains. “So they couldn’t get the deal done. (Subsequently) they kicked out CEO Rob Mcguire and the stock just tanked.”

Shares lost nearly 50% of their value plunging from $30 down to $14. And when they discontinued the dividend a lot of REIT players got out.

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“I like the dynamic,” Finerman concludes. (Remember she looks for value.) “They have good properties. I think it’s a stock that’s just incredibly out of favor.”




“I like the dynamic,” Finerman concludes. (Remember she looks for value.) “They have good properties. I think it’s a stock that’s just incredibly out of favor.”



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