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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (40978)	4/7/2004 11:23:55 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70882

09:05 Real Estate stocks: BofA Sec does not see recent weakness as buying opportunity BofA Sec does not think there's a buying opportunity in real estate stocks b/c valuations are high even though the stocks have plunged 8.9% over the past three trading days. Real estate stocks were expensive at the start of the year, and even with the recent decline, the stocks are up 3.0% y-t-d. In addition, the avg real estate stock is still trading at 13.0x estimated 2004 FFO (funds from operations), a 27% premium to the historical average (1993-2003) of 10.3x, and above the prior peak (1997) of 12.9x. Slowing fund flows present downside risk: Funds flows have been at record-breaking levels over the past 15 months, which is important because firm's proprietary trading desk estimates that a significant portion of the strong performance in 2003 and 1Q/04 was driven by a high level of funds flows making their way into a relatively illiquid group of stocks. If this trend were to reverse, which is likely given the size of the recent decline in stock prices, it could accentuate the downward move.