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MAGUIRE

Maguire (MPG) is an office REIT that operates in southern California. Its shares have struggled dropping about 90% in the last 52 weeks. At the end of 2008 indiscriminate selling created an interesting opportunity in the Maguire series A preferred stock (MPG.PA). The A up until 4^th quarter 2008 paid a .47 cent a quarter dividend.

So far I have written four “Short Ideas” for Seeking Alpha, and my track record has been stellar.

My article on Crystal River (CRZ) was submitted when the stock was around 3.5, and as I write it is now at 2.18, down nearly 40%. In it I predicted that the company would in Q2 write down its book value from $5.33 per share in Q1 to either 2.38 or 2.44 per share in Q2, depending on whether there was a second write down on a defaulted junior loan to a Portland condo development.

When evaluating short plays of financials with falling asset values, a very profitable strategy for me the past two years, I look for three things: ownership of the declining assets, short-term or callable financing, and a high degree of leverage.