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

To: MCsweet who wrote (26136)	2/23/2007 4:40:20 PM
From: Paul Senior	Respond to of 78740

FSP. Lot of insider buys last year and in '05 around current price, with no insider sales. I'm betting with the insiders here.

To: MCsweet who wrote (26136)	2/23/2007 8:06:27 PM
From: a128	Read Replies (1) \| Respond to of 78740

Im not sure FSP is cheap based on an AFFO multiple compared to other REITS. Their dividend is higher than most. And their lack of debt makes it more conservative. The 2 things that bother me are in an investor presentation last year, mgmt tried to convince listeners than their gains should be considered in addition to AFFO but apparently, the street doesnt like one time gains...even if they recur pretty much every year. The other thing is....Im afraid they may be shooting themselves in the foot with every new private placement securitization. Apparently, they have a really large % of investors in these syndications that buy again & again. And later on when FSP buys them out for stock, Im afraid they SELL their FSP stock to invest in the syndications. (Apparently higher risk deals, untill FSP buys them for their own portfolio) As Paul mentioned, the insider buying is a positive here but mgmt sounded a bit frustrated that the stock wasnt getting the valuation they expected. I feel pretty confident their current dividend will not be decreased. (I was hoping it would be increased but it doesnt sound like it) Not sure where you got 85 cents from. They earned $1.65 versus $1.32 the prior year. They said to look more at FULL year over year earnings (as opposed to quarterly) because they never know which quarter gains on sale might occur.