Ive bought FSP 5 times in equal blocks as well as had my dividends reinvested.
My open market buys were
8-19-05 $17.35
9-9-05 $17.05
9-14-05 $16.51
6-13-06 $20.58
7-13-06 $18.91
In all, with the dividends reinvested it brings my average cost basis down to $17.07 per share.
I also own it in my IRA. Its the largest single position in my IRA. (Other than Cash)
The reason I averaged up is because the Insiders continued to do so and because I had a number of liquidity events so my cash was increasing and I wasnt finding stocks I liked.
I never used to average up but Ive changed my philosophy if more information becomes available which suggests things are doing well. (The repeat insider buying in this case)
Here is the lowdown on FSP for the poster asking....
REAL ESTATE OPERATIONS: FSP owns an unleveraged
portfolio of real estate assets, consisting primarily of
suburban office buildings. The Company's real estate
operations include leasing and interim acquisition financing,
which generate rental income, loan origination fees and
development fees and, through its subsidiary, FSP Property
Management LLC, asset and property management fees.
FSP offers an investment/product strategy that is different
from most of its competitors. FSP’s knowledge of the real
estate industry and understanding of its return generating
characteristics allows it to identify superior assets for
investment. Unlike most real estate investment companies,
which utilize varying degrees of leverage in an attempt to
enhance their real estate portfolio’s returns, FSP employs no
leverage. This business model significantly reduces the risk
profile of FSP’s product offering by more appropriately
matching the long-term nature of real estate as an asset
class with “permanent” equity. By eliminating foreclosure,
financing and refinancing risk from the product offering, FSP
is able to offer better-quality risk-adjusted returns. FSP
believes it can significantly lower investment risk while
enhancing current income and long-term appreciation
potential by owning property on an all-cash basis (i.e.;
without any mortgage debt), in diversified geographic
locations that have long-term economic potential. |
