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I listened to the conference call and here are my quick takeaways/ notes:

- Tom started by acknowledging that the merger is a mistake, "we messed it, physical and financial obsolescence of what we acquired are much more dramatic than we thought."; I guess the apology should comfort the billions of capital lost by investor; Anyhow, moving on...
- So colony wandered around looking for direction and found religion on digital
- Goal is in 24 months 90% digital
- They have few more acquisitions on the digital side lined up. That along with Zayo, they should have another $20B in fee earning digital assets.
- The other verticals offer no organic growth like digital
- There is going to be ton of liquidity coming their way, $500M on others; NRE;and they have $4B raised on the digital fund; However, looking at their overall debt exposure, where their equity prices, I don't think they have market to issue preferred's, they will not be able to redeem preferred's, as that will reduce overall capitalization;
- This is going to be a very hairy, messy business with tons' of debt, and various trust securities redemption/ refinancing risk

Here is a comment from Tom that furthers my doubt their REIT structure and this will be a significant risk for preferred's

"Qst: are you fully committed to REIT structure;
Tom: No we are fully committed to making money to our shareholders; the quickest way to get the capital back to our shareholders in a tax efficient way is REIT for the foreseeable future"; Tom talked about at some point in future they could spin off REIT and digital assets could go in a different direction.

In a nutshell the investment thesis is, you have CLNY with a very low multiples and you have digital REIT's like AMT with very high multiples; And if CLNY can have a moderate success (TOM's words) the multiples should double from here.

I am going to take 1% position on CLNY common and roll the dice to see if I get lucky. To me while preferred's offer excellent yield but they don't have the upside of the common and the risk of them getting "waldonized" in some shape or form is a bigger risk. If an when the management talks about redeeming preferred's because they don't need those $1.5B equity capital is the time, I would get in.
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