Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Paul Senior who wrote (25331)	11/23/2006 3:18:25 AM
From: vi2007	Read Replies (2) \| Respond to of 78516

Ive bought FSP 5 times in equal blocks as well as had my dividends reinvested. My open market buys were 8-19-05 $17.35 9-9-05 $17.05 9-14-05 $16.51 6-13-06 $20.58 7-13-06 $18.91 In all, with the dividends reinvested it brings my average cost basis down to $17.07 per share. I also own it in my IRA. Its the largest single position in my IRA. (Other than Cash) The reason I averaged up is because the Insiders continued to do so and because I had a number of liquidity events so my cash was increasing and I wasnt finding stocks I liked. I never used to average up but Ive changed my philosophy if more information becomes available which suggests things are doing well. (The repeat insider buying in this case) Here is the lowdown on FSP for the poster asking.... REAL ESTATE OPERATIONS: FSP owns an unleveraged portfolio of real estate assets, consisting primarily of suburban office buildings. The Company's real estate operations include leasing and interim acquisition financing, which generate rental income, loan origination fees and development fees and, through its subsidiary, FSP Property Management LLC, asset and property management fees. FSP offers an investment/product strategy that is different from most of its competitors. FSP’s knowledge of the real estate industry and understanding of its return generating characteristics allows it to identify superior assets for investment. Unlike most real estate investment companies, which utilize varying degrees of leverage in an attempt to enhance their real estate portfolio’s returns, FSP employs no leverage. This business model significantly reduces the risk profile of FSP’s product offering by more appropriately matching the long-term nature of real estate as an asset class with “permanent” equity. By eliminating foreclosure, financing and refinancing risk from the product offering, FSP is able to offer better-quality risk-adjusted returns. FSP believes it can significantly lower investment risk while enhancing current income and long-term appreciation potential by owning property on an all-cash basis (i.e.; without any mortgage debt), in diversified geographic locations that have long-term economic potential.