If you've ever seen Storage Wars on A&E, then you understand hidden value. On the program, a group of investors are briefly shown the inside of abandoned storage locker, and then they bid on the unit. Similar to valuing a business, what you see goes into the price you pay. What's stuffed behind that dirty old mattress, however, is hidden value.
Likewise, take a quick glance at real estate investment trusts Vornado Realty Trust (NYSE: VNO) and Starwood Property Trust (NYSE: STWD), and you'll see plenty of obvious value. But there are also hidden gems that don't get nearly enough attention. As of today, Vornado Realty's investment in Toys "R" Us, and Starwood Property Trust's position in Auction.com shouldn't be high on your list of reasons to invest in either of these companies. However, if you already own one or both of these companies, or you're planning on investing, these potential hidden gems are certainly worth keeping an eye on, as they hold serious upside but aren't getting factored into the price of the stock -- which means you're getting them for free. And who doesn't love free?
Source: Motley Fool
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Posted by D4L | Monday, January 11, 2016 | ArticleLinks | 0 comments »________________________________________________________________
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