Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : REITS - Buying 1 - 2 weeks before going ex-dividend -- Ignore unavailable to you. Want to Upgrade?

To: J Gunn who wrote (1612)	11/20/1999 8:12:00 PM
From: KW Wingman	Read Replies (1) \| Respond to of 2561

IMO most of HRP decline was due to general market decline in REITs. It appears that there was also some confusion about the spin off some people thought it was going to result in a div cut. I have added quite a few shares in both HRP and SNH in the last few weeeks. I have enough HRP but will probably add more SNH. I also have a lot of CEI but may add more. I will look into others as well. I don't really care if the REIT stocks go lower, this just means I can buy more shares per invested dollar. I intend to keep loading up the boat. IMO, REITs will have to bottom out sooner or later. IMO, this time is at hand. CEI and others appear to me that they have started to turn positive. Regards, Wingman

To: J Gunn who wrote (1612)	11/21/1999 9:44:00 PM
From: Richard Barron	Read Replies (1) \| Respond to of 2561

HRP is trading at an absolutely tremendous discount to the other office REITs. The biggest disappointment is a feeling that the external advisor is self-serving. I'm not sure if they have an ownership position in SNH. If not, they dividend appears to be safe in one of the strongest sectors of real estate. SNH, like most of the medical REITs has been effected by changes in medicare reimbursement rates called PPS (Prospective Payment System). Almost all nursing home operators have seen their stock prices drop 80-99% in the last 2-3 years as a result. Recently there was a lot of talk about restoring some of the reimbursements to nursing homes in this budget, to keep all the nursing homes from going belly up. As such, there should be a great long term entry point in ownership of these nursing homes, and other healthcare vehicles. Until then, many of the health care REITs have serious financial cash crunches that have become very serious. MT and ETT are examples. OHI, NHP, HCN and others are also off by a huge amount. The sad thing is that these are among the most recession proof industries until the government started to muck around with short thinking, misguided changes. so... even though REITs are out of favor and may continue for another week, month or year, there is a decent upside potential of 15% + returns for many, many years.

To: J Gunn who wrote (1612)	11/28/1999 3:11:00 PM
From: Bob Rudd	Respond to of 2561

J Gunn: <<Is there any chance at all that these 2 will come back at all by the end of the year? Or would the consensus opinion be to sell them now and reinvest in practically anything else.>> These are two very different questions. Basically, sunk costs don't count so the second question...'should you sell and reinvest elsewhere' is how you need to be framing the decision. Given current market valuations it's hard to find more favorable [to buyer] risk return outlooks than HRP & SNH, but if you demand that the market recognize this by the end of the year, you're going to be disappointed. Tax loss selling will continue to put downward pressure on prices as disgusted investors bail on this to jump into things offering far less favorable values but are more popular. Over the long term, buying good values that are out of favor usually pays off much better than buying stuff everybody likes despite the fact that good values can become 'better values' in the near term and popular can become soar despite overvaluation. An important key to investing in out of favor stocks that offer better values is to accept that they may be out of favor for awhile. Hope this helps, bob