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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: CpsOmis who wrote (12640)	2/23/2002 9:14:59 PM
From: pls418	Respond to of 23153

CpsOmis, I have 33% of my portfolio in 13 different REITS diversified over the different REIT Sectors. I was fortunate to get in a couple of years ago when the REITS were cheap and I have made a lot of money and I wouldn't sell here because I have become dependant on the dividends and I am willing to take the price fluctuation. But your question is a tough one. I believe REITS are high right now because number one there is no where else really to get a decent income return, and number two which worries me most is that REITS are a parking place for money and when the overall market turns up money may flow out of REITS big time. As to your question as to weather you should invest now I couldn't tell you. But if you do, invest in sectors that will do best in an improving economy. Try to pick those with less debt, decent NAV's, and above all else make sure they have a decent pay out ratio. If you can get your hands on a copy of Realty Stock Review it will be of enormous help to you. Just remember the higher the yield usually means the more risk and less growth. Less growth usually means less return in the future. And boy do I have trouble with that one myself. Do I want it now or do I want more later? If you are looking for income I think you will love REITS but of course the question is are they a buy right now? That you will have to answer for yourself through research. But if you can buy high quality REITS and are satisfied with the dividend and willing to take price fluctuation the answer to your question is maybe yes. One quick example, I bought MLS about 5 years ago at its high of about $28, and I was getting a nice div. well from there the stock proceeded to drop 40 percent in two years and stayed there for another two years, it was not until the last couple of weeks the stock has come back to 28, but for five years I've had a nice return with increases in the dividend, would I have liked to buy it cheaper with the rest of them, hell yes? Did I buy at the top? yes. so that brings me to my last bit of advice, don't buy everything at once. TakeCare Steve

To: CpsOmis who wrote (12640)	2/24/2002 1:18:45 PM
From: jim_p	Read Replies (1) \| Respond to of 23153

Cps, Welcome back if only for a brief visit. I'm working towards a 50% tech and 50% energy portfolio that I will be able to hold, sleep at night and not trade. It still needs some fine tuning, but hope to be doing a lot less trading and getting back to buying oil and gas properties, building a new Harley for fun and training for next years marathon. This was the first year in six that I didn't run a marathon. There are a lot of oil and gas properties on the market that have not sold due to a large gap between the buyer and sellers. Many sellers like CPN and EP need to reduce debt and may get more reasonable on a selling price this spring. CPN will need to recognize a huge loss on their sale unless they can find a larger mullet out there. I'm hoping that gap closes in the next 2-3 months and we see a buyers market before prices start back up so I can add to my oil properties. CPS keep in touch and send a poem our way from time to time. If you have time, take a look at AMD. It's back in the 12's were we sold it awhile back. Selling at 18X next years EPS, no net debt, 81% of book and 20% of stock price is in cash. Also take a look at NITE. AMD and NITE are the best buys I see outside of energy right now. Jim