Chasing Value: Grubb & Ellis Hits New High

The original post, Chasing Value: 2010 -- #2 Grubb & Ellis, highlighted steadily improving quarterly reports with diminishing losses, an infusion of new capital and the retirement of debt. These things still hold true and the economy seems to be healing while interest rates are being held at historically low levels.

As long as GBE remains a penny stock, it should be considered highly speculative. Generally, it can be expected that no institutional investors will be placing a bet on it until it passes $5.00 per share, when and if it does. If this happens with the risks ever farther behind it, then I would expect to see some added upward pressure on the stock.

Capitalized at under $150 million, there is also the possibility of being acquired, taken private or both. There is some short interest but that remains well under 1% of the outstanding shares, although the blogosphere seems to have a fare amount of discussion about it.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture and planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of GBE.