Why Gramercy Capital Is Poised to Pop

Brian D. Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT Gramercy Capital has earned a respected four-star ranking.

With that in mind, let's take a closer look at Gramercy and see what CAPS investors are saying about the stock right now.

Gramercy facts

Headquarters (founded)

Los Angeles (2004)

Market Cap

$165.0 million

Industry

Diversified REIT

Trailing-12-Month Revenue

$107.5 million

Management

CEO Gordon DuGan (since 2012)
CFO Jon Clark (since 2009)

Return on Assets (average, past 3 years)

(1.1%)

Cash / Debt

$175.4 million / $2.5 billion

Competitors

Equity Office Management, LLC
iStar Financial Newcastle Investment


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 374 members who have rated Gramercy believe the stock will outperform the S&P 500 going forward.

Earlier this week, one of those Fools, All-Star TMFDeej, succinctly summed up the Gramercy bull case for our community: "The conversion from a wierd CDO machine into a normal REIT with real property assets continues. Once [Gramercy] pays off its preferred shareholders (of which I am one as well) and initiates a dividend on the common at some point this year or next its stock should take off."

If you want market-beating returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Gramercy may not be your top choice.

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The article Why Gramercy Capital Is Poised to Pop originally appeared on Fool.com.

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool owns shares of Gramercy Capital. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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