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Strategies & Market Trends : REITS - Buying 1 - 2 weeks before going ex-dividend

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To: upanddown who wrote (535)12/15/1997 9:52:00 AM
From: Richard Barron  Read Replies (2) of 2561
 
John,
Your list of REIT's is pretty good as far as I'm concerned. 3 of them are hotel REIT's (AGT, FCH, KPA) and I'd check out for overbuilding in their particular sectors before long term investments are added. These have had enough steam knocked out of them that they are cheap, but if a recession comes on, then corporations cut down on hotel expenses. If any of the rest of these pull back 10-15% from the highs, you are at a good entry point.

Johndee,
Most REIT's won't trade more than 20-30% over book since it's just real estate and you can always buy real estate somewhere at current values. The reason people pay a premium for CEI and other leaders, is because of the quality of the management team and/or the property quality/locations.
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