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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: fastcats who wrote (49860)	3/27/2001 6:35:52 PM
From: baddtiming	Read Replies (1) \| Respond to of 57584

Do you still have that list from last year? Thanks BT

To: fastcats who wrote (49860)	3/27/2001 10:31:26 PM
From: Rande Is	Read Replies (1) \| Respond to of 57584

FastCats, the REITs portfolios from last year represented a cross-section of the sector and included non-Real Estate oriented Royalty Trusts [when I refer to REITs, I mean all types of Royalty or Investment Trusts]. There never was a "preferred list" per se. Everyone basically picked their own early last Spring and made various hypothetical portfolios from their picks. . . and we picked from the lists. Perhaps others can share some finds or REIT ports they may have assembled. I wish I could spend the time doing the research myself, but I am quite busy these days. LOL! Every year we move into REITs, we get flack from aggressive tech traders. . . .as though we've all lost our minds. And yet over the past two summers that we have played REITs we managed to protect our assets, while keeping our money at work for us. I remember taking flack right up until the day that Warren Buffet announced he had bought several REITs last April. >g< A good way to make your own selection is by using a stock screener. . . . and put in your own criteria. When I look for Royalty Trust companies, I generally look for an extremely high rate of dividend yields. . . coupled with good valuation and solid fundamentals. Careful though. . . it can be deceiving when a Real Estate Trust begins to sell off its properties. It will issue extremely high dividends to shareholders of record from the funds received in the sales transaction. However, when these show up they will skew your scans. There is NO indication that a similar dividend will be issued the following quarter after selling a property. And of course with each property sale, the earnings are proportionately reduced. So when you get interested in particular REITs, I strongly suggest you take some time to read the Edgars and get the whole story. Many times a company will scan out beautifully. But upon digging through the Edgars, you may find that the company is being liquidated or that all or most of the properties are up for sale or that the company holds nothing but some funky old oil wells in desperate need of repair. . . . so best to do your DD and KNOW YOUR COMPANY! We made such a great trade on NUT [Mauna Loa Macadamia Orchards] when the stock was chopped down due to La Ninas, which were expected to cause the side of the island where the orchards were to be too dry. But when we learned that the crop was coming along just fine, yet the price was still quite low, it became a no-brainer investment, which paid off nicely. We made a similar nice trade when the company rejected a merger offer by the operating company, C. Brewer Homes. . . . so these may be position traded like any other stock. . . . but the best time to move on a royalty based trust is always just before the ex-dividend date. In fact, many of the REITs that were discovered here by everyone actually had annual yields of between 10% and 20%!! It always amazes me how many folks will choose to place their money at risk with a stock in hopes of scoring 20% to 30% over 6 months. . . . when they could just as easily get a guaranteed 10% dividend payment during the same 6 month period in a stock with virtually no risk. . . . .not to mention that the stock may that also appreciate as so many of ours did last spring/summer and the summer before. Anyway, best to use the screener, read the Edgars and go with a basket approach, IMO. Thanks. . . I hope that helps some, Rande Is