Greenlight’s David Einhorn Misses Mark on MI Improvements $MIM

MI Developments Inc. (MIM), “which rents office and factory properties, said Tuesday it plans to convert itself into a real estate investment trust and quintuple its dividend,” according to TheGlobeAndMail.

David Einhorn

Activist Shareholders Pushed for REIT Structure

“This announcement represents a victory and vindication for all of the activist shareholders that have worked towards this over the last seven years,” said Alex Avery, CIBC World Markets analyst. TheGlobeAndMail reports that “Minority investors had been pushing for the REIT structure since 2004 as a way to extract bigger rewards from MI Developments. Prominent among the activists was Greenlight Capital LLC, the hedge fund controlled by U.S. investor David Einhorn, which sold its stake this year.”

David Einhorn Advocated For REIT and Against MIM Management

David Einhorn was one of the biggest advocates for MIM to convert to a REIT. He was also highly critical of the firm’s management, primarily denouncing, MIM chairman Frank Stronach for using MI’s cash to give loans and enter into transactions with other companies he controls, including Magna Entertainment which manages horse racing tracks and casinos mainly in North America,” reports GuruFocus. Einhorn, who once owned as much as 11% of the company divested his position. Shortly thereafter, Stronach “recently left the company and they converted it to a REIT.” According to GuruFocus, “Many investors expect MI to rise as it now sports a $2 dividend. The stock now trades at $32 meaning that Einhorn left a lot of money on the table.”
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!