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

To: Paul Senior who wrote (25351)	11/30/2006 3:02:22 AM
From: vi2007	Read Replies (1) \| Respond to of 78516

Regarding FSP... Well, like I said before, I am NOT finding the kind of microcap value stocks that I used to. And or maybe because of that...and the fact that I dont have "other than stock market & interest" income anymore....I find myself valuing preservation of capital more than in the past. Another reason I liked FSP was the company was, in the past, buying back stock. I think they spent $7 million and change and the highest average price paid during a quarter was like $20.59. They did not buy any back in the 3 months contained in the most recent 10q however. My concern with FSP is their business model...the way they raise capital with these private placement deals which they later fold into FSP. I listened to a presentation months ago and they said a very large percentage of their private placement partcipants came back and bought another. So these folks take the bigger risks and make the bigger rewards and then get FSP stock instead of cash. So when their salesmen are calling them for more private placement money, it seems to me that it can have the effect of causing those folks to sell their FSP to buy what they consider more lucerative investments. (Albiet without the regular income or "safety" that the higher quality FSP-owned properties have. I guess Im comparing apples to oranges...risk capital versus steady dividends & possible capital appreciation. But, i see private placement sellers as holding the shareprice down somewhat. Of course, that theory might be flawed in that the folkd investing in these private placements have so much money they just let it ride and dont take the gain and add different money to buying the next private placement. What Im looking for out of FSP is an annualized total return in the 8-15% range over the next 3-5 years. Anything above that would gravy.