Colony Capital – in the discards pile

Over the past couple weeks, I did some research on Colony Capital (NYSE: CLNY) as it appeared to hit a few of my target spots for investment criteria.

Unfortunately, due to having a minority or bare majority investment in a ton of joint ventures and a myriad of various recourse and non-recourse loans, the consolidated financial statements are completely useless for the purpose of financial analysis, which takes quite a bit of digging to get the proper numbers.

I’ve put this stock into my “have a reasonable idea of the valuation, but the underlying is beyond my core competence” category. In terms of valuation it seems relatively cheap (and dividend investors also have a good reason to throw some money in it), but I’m not pulling the trigger on it.

So this ends up in the discards pile – one of you out there might wish to take a second sober look at it.