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

To: Dale Baker who wrote (13737)	1/21/2002 3:23:01 PM
From: Bob Rudd	Respond to of 78666

Dale<<FVE Any current thoughts here?>>A few. My FVE holdings are too small to sell economically [Spins often sell off cause holders of originating entity don't want them]...as to buying more...I keep hearing rumblings of Congress diddling the Medicare reimbursements. That's what sent several national nursing home chains to BK and drove down prices of REITS like SNH, ETT...etc. The latter have recovered and tend to be more insulated from the regulatory risk since many nursing home operators continued to pay rent despite being in bankruptcy. The FVE properties didn't and were basically repossessed and then spun as FVE. So they are more directly impacted by regulatory risk. The Feds have dealt with their industry regulatory responsibilities with about as much competence as Ca. showed on energy deregulation. [Sen Grassly, a key figure in regulating the industry, once said he didn't think BANKRUPTCY would have any impact on nursing home residents...Presumably he still shops at Montgomery Wards] Given this, I would demand a very high margin of safety to increase exposure to FVE. I didn't see it, but, like you, I didn't do an in depth dig.