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DigitalBridge Group, Inc. (DBRG)

NYSE - Nasdaq Real-time price. Currency in USD
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8.07-0.19 (-2.24%)
As of 10:21AM EST. Market open.
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  • R
    Roshambo
    Im not a technical analyst but the 6 month chart sure looks like it’s Teed up for a breakout to new highs
  • I
    Ivo
    B.Riley analyst Daniel Day raised the price target on DigitalBridge Group Inc. (NYSE: DBRG) to $13.00 (from $12.00) while maintaining a Buy rating.
  • M
    Max L
    Our slider showing over and under value finally moved. It stayed over valued for a long time. Nkw it shows under valued by 18% so... That is cool.
  • D
    David
    I'm thinking the drop over the last two days is because of the exchange of the exchangeable notes. Paying out around 400 million dollars worth of stock to get rid of 106 million of debt looks just awful, and it is a terrible thing, but I am thinking this debt was probably issued when the company was in dire straights during the first few Covid 19 months when many REITS were slammed with margin calls and had to make terrible deals on selling assets at pennies on the dollar or take loans with awful terms. The stock was down to around $2 then, so the exchange rate was probably set then, and it would have to be paid off some time at the $2 a share rate.

    Someone mentioned that the note holders , might be happy to give up the rest of the interest they would get through 2025 to get the shares now. It actually looks like they don't have to. From the press release, "For example, using the closing price of DigitalBridge Common Stock on November 15, 2021 of $8.17 (assuming a consistent price across the adjustment period described below), the exchange ratio would be 452.1261 shares per $1,000 of value, with the incremental 17 shares representing value for the incremental interest otherwise due to the Noteholders through 2025."

    So, they get the interest due through 2025 right now in the form of even more shares. It does look like these shares are at figured at full current value and not at $2.

    Another unfortunate thing in the press release is ""We’re pleased to have now exchanged a total of $150 million of the 2025 Notes, representing half of the original issuance" said Jacky Wu, CFO of DigitalBridge." So there will be more similar awful exchanges.

    On a possible positive note, the press release says the shares being given in the exchange are treasury shares: "The exchange of treasury shares of Common Stock for the 2025 Notes is being made...". That would mean they are not new shares, but they were previously bought back on the open market. Treasury shares are not usually counted in the eps calculation, but perhaps there was a "fully diluted" share count that was used in the eps. If not, then the eps will take a hit because of these shares and more hits as the rest of the debt is exchanged in the same way. Hopefully the company will be making enough additional money to more than make up for this.

    And maybe the note holders getting all these $2 shares are going to dump them soon after they get them, and maybe they are already shorting them to be covered when closing happens in a week or so. This may be contributing to the decline.
  • M
    Max L
    Holding up well today guys, great to have all my eggs basically in 1 basket 😆
  • R
    Roshambo
    Can anyone send me today’s WSJ article on Ganzi and DBRG…I’m too cheap to subscribe
  • p
    pinot noirist
    Up big on huge volume means people ( or institutional buyers) are banging down the door to buy. I am very pleasantly surprised.
  • p
    pinot noirist
    Nice recovery so far today. If $8 holds despite grim market day it will be, IMHO, a very good sign. Keep in mind that digital assets do well when people are more afraid of public gatherings like meetings and shopping because digital remote activities are in fact a lot safer. I think that is also why BABA will end up rebounding.
  • p
    pinot noirist
    Could be coincidence but I think the exchange of $108 million in debt for a ton of shares which basically means they sold hundreds of thousands of shares for around $2 has spooked a lot of investors. It sure as hell spooks me. Why did they do it. I understand that it was convertible debt but why not just keep paying the 5.25% until 2025 . Hopefully I am badly misunderstanding the deal and it was actually a pretty clever move. Any corporate accountant out there who comprehend this stuff better than ours truly?
  • K
    Kin Lam
    12 by end of year.
  • R
    Roshambo
    How does the price AMT is paying for coresites look relative to the assets Ganzi has been accumulating for DBRG?
  • R
    Roshambo
    As Ganzi and Wu work the debt down, DBRG becomes more investment grade to even more institutional $$….moving higher from here IMHO
  • p
    pinot noirist
    Solid earnings report IMHO, better than I had expected. Fully transformed to digital REIT, debt reduction, poised to start actually producing earnings and taxable income so a dividend sooner rather than later might just be possible. Mr. Ganzi won't get his bonus any time soon but could happen next year.
  • 5
    5Gwave
    Dividend yes...but de-minimis. This is a DI growth stock and with mgmt fee's from AUM growing so fast/large the REIT structure may no longer be valid... additionally Ganzi wants to re-invest earnings in DI infrastructure, not pay them out in divi's...so if you are looking for a med-high yielding digital reit, this may not be your play...imho

    Derive at least 75% of gross income from rents, interest on mortgages that finance real property, or real estate sales.
    Pay a minimum of 90% of taxable income in the form of shareholder dividends each year.
  • G
    Golden Mamba
    With the Series H shares being redeemed on Nov 15, I assume that quite a few folks that have owned these shares, might re-invest it back into DBRG considering the momentum and long-term potential of the company.
    Does this make any sense? Would love to hear from people on this board that have experience with preferred shares and this type of situation.
  • 5
    5Gwave
  • T
    Terry
    Whats up, up 7% on 3 times average volume, maybe some year end window dressing? folks reshuffling the Russell 2000 deck? I like it!!

    Maybe Ganzi pumping for early next year bonus
  • R
    Ryan
    A great quarter beating expectations. To say I am surprised is an understatement. Unfortunately I missed out on this little bump, but am going back in strong because of them finally showing a profit. What a turn around.
  • 5
    5Gwave
    Hit piece on SA by a short minion analyst... very weak analysis and report. Shorts grasping at straws. Time to wave the white flag and cover boys.