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Strategies & Market Trends : Value Investing

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To: Wallace Rivers who wrote (59615)	7/23/2017 12:42:35 AM
From: geoffrey Wren	1 Recommendation of 78670

As always with RMR-involved transactions, the purchase by GOV of another company looks more like a move to help increase RMR's assets under management rather than improve the lot of previous GOV shareholders. GOV's metrics have been deteriorating for awhile. I think the GOV dividend is at risk of being cut. The way that works, if it happens, is that the market prices GOV much lower to where the yield is 12% or so, the pressure is on, and GOV then cuts the dividend. In reality even if GOV cut the dividend by 1/4th, and paid the reduced dividend to the end of time, it would not be a bad investment long term. But then you have to factor in the risk that RMR will again torpedo the stock with another shareholder unfriendly maneuver. Worth watching, but not a buy at current price IMO. And if current priced drops due to bad news, not a buy at a reduced price either.

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