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

To: 249443 who wrote (13362)	11/29/2001 1:10:54 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78486

mrcjmoney, others: review of real estate operating companies discussed here and some possible stock ideas: As you know, REOC's offer the potential of reward if their underlying assets can be determined to be more valuable than their stock market caps. Especially if/when those assets get monetized through land sales, development, etc. So of course, JOE, being among the larger and older of these type businesses (JOE with its railroad and land holdings actually predating the category REOC) has been discussed and followed here several times. One professional analyst here had followed the stock, and his comments were prescient and profitable for those who listened and bought. Other stocks discussed on this thread include: CDX, ALCO, CTO, NWL, TRC My recollection is that anyone who bought any of the Florida REOC after they were mentioned here (or on the Buffett thread) has had an opportunity to take good profits. (price rises in CTO, ALCO, and JOE stocks) For California companies, it was/is more iffy. Newhall stock (NWL) has bounced around - they've had some difficulty getting building permits - I notice now still a little insider buying though. And it's been slow going for Catellus (CDX) too. For Tejon Ranch (TRC) it's been a cyclical ride. Those people here who were in when it was much discussed here in '97 (was it that long ago?) got a double or triple quite quickly after Marty Whitman announced he was buying the Tribune's large TRC position and would speed development of TRC's Los Angeles properties. Fwiw, I see TRC and JOE stocks as being cyclical (at least for now - until development progresses more?), and so I'm reluctant to start a position at current prices. I've passed on NWL many times. (JOE too- to my sorrow) CDX is boring - I have it, I occasionally add to it, and I'll consider adding more if stock drops. I also have SCZ which owns large positions in a few REITs but which itself is not a REIT. The offset to the lack of dividend is that SCZ is more flexible (in its businesses and capital structure) than is the typical REIT. A few days ago I started a small exploratory position in LNR (the real estate business spin off of homebuilder Lennar). LNR's public record is only since '97, but that record is pretty good. Low p/e, with diversified real estate holdings. They may have more debt than I'd like -- that could be a function of the collateralized mortgage loans they make (which itself could be a dangerous game) All jmo, my recall of actual events might be incorrect, I'm no expert in REOC or real estate, I'm glad to have been in a few, sorry I missed out on some others. Paul Senior