Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, shopping-center REIT Developers Diversified
With that in mind, let's take a closer look at Developers Diversified's business, and see what CAPS investors are saying about the stock right now.
Developers Diversified facts
Headquarters (founded) |
Beachwood, Ohio (1965) |
Market Cap |
$596.56 million |
Industry |
REIT |
TTM Revenue |
$974.20 million |
Management |
CEO Scott Wolstein (since 1992) CFO William Schafer (since 1993) |
Return on Equity (average last five years and TTM) |
9.9% and 5.6% |
Competitors |
Kimco Realty
CBL & Associates Properties |
CAPS members bearish on DDR also bearish on |
XL Capital
Pulte Homes |
CAPS members bullish on DDR also bullish on |
Citigroup
Apple |
Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 167 of the 282 members who have rated Developers Diversified -- some 59% -- believe the stock will underperform the S&P 500 going forward. These bears include zorgblack and CAPS All-Star uclayoda87.
In late October, zorgblack used some simple logic to support the bear case: "Empty malls, empty shops, empty dividend."
In a more recent pitch from last month, uclayoda87 points to Mr. Market, himself, as a possible sign of bearish things to come:
Asset sales and cost cutting activity in the last two months, but the stock price keeps dropping, which suggests that they are not bailing out the boat fast enough. I suspect vacancy rates will rise and some tenants will go bankrupt causing further problems with revenue. Uncertain if their cash position is strong enough to weather this financial storm.
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