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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Poet who wrote (6962)	4/26/2000 1:55:00 PM
From: Exacctnt	Read Replies (2) \| Respond to of 8096

Unsolicited REIT recommendation. I've owned HCP since its IPO. biz.yahoo.com

To: Poet who wrote (6962)	4/26/2000 5:19:00 PM
From: Cosmo Daisey	Respond to of 8096

Poet, I hold GRT, DDR, NHP, HCN, RFS. If I was adding today I would probably buy more HCN and RFS. HCP @ 10.59% is also on my watch list. HCN @ 14.94% and RFS @ 13.46% returns are attractive. The others I bought a few weeks ago and they have moved up in price. If I was buying two I would choose two sectors. RFS is Hotels and HCN is health care. I am looking at others also but nothing has clicked yet. The only REITS's I look at are listed on the NYSE so just put in an order with your broker. I have been successful buying at the bid in every case, sometimes it takes an hour or so but I have gotten the bid price. I am looking for a specific return so I buy the number of shares to yield that amount. For example if you are looking to generate income of 50,000 a year in dividends it would take about 360,000 @ 14% return spread between five REIT's for diversity. I am using 14% because it's a blended return that's available now. Lets use HCN which is paying 2.34 div. I would round up to 4300 shares for 10,062 a year. Todays close @ 16 11/16 requires 71,756. A 7% CD would yield 5,040. I screen for five years of dividend payment, minimum of six analyst, more strong buy and buy than hold. HCN has 2 strong buy 6 buy 1 hold. Dividend growth is a bonus. HCN 1995=2.08, 1996=2.08, 1997=2.11, 1998=2.19, 1999=2.27 2000=2.34 REIT's aren't for everybody but for that part of a portfolio that is allocated to income it makes sense to look at them now especially because the yields are so attractive. A friend buys them in his margin account and buys twice the number of shares and after paying margin interest he is getting a 10% return. Think about it, 250,000 cash at 14%=35,000 or 500,000 at 10%=50,000 and extra 15,000 a year. cdaisey@give-me-the-simple-life.com