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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (49033)	8/9/2012 3:29:37 PM
From: Spekulatius	1 Recommendation Read Replies (6) of 78670

I don't understand, why GOV appears attractive to people in this thread. GOV is a spinoff from HSP (which many here owned), which was a mediocre Reit managed by RMR. GOV and CWH (HSP morphed into CWH, i think) which really means that an asset manager/gatherer (RMR) manages these Reit's not a dedicated management. think closed end fund. They get a fee based on the size of the assets , which means that they will do a secondary or merger whenever they can to expand their asset and fee base. You can see the pattern with CWH and GOV very clearly and this will always put a lid on the NAV and the stock price. GOV was created during the financial crises, because having the government having as a renter seemed Golden and let them spinoff assets and gather more via subsequent secondaries to finance more purchases. Just read the last quarterly earnings transcript and Michael Bilermanns questions, pretty hilarious don't you think: seekingalpha.com Given RMR's incentives, i would not want to own anything they manage unless it is dirt cheap (Think HSP at 3$/share with a 9$ book value in 2008/2009).

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