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: richardred who wrote (26529)	5/30/2007 9:56:48 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78741

Fwiw, I'll take on a few shares of real-estate closed-end fund RIT. (-g-) ========================================================= On the one hand, real estate companies -- reits-- have really done so well the past few years compared to other investing areas (mid-cap growth, value, other fund types), that one has to wonder if the real estate appreciation in these sectors - apartments, commercial, etc. has about peaked. OTOH, we still see interest in acquiring reits, such as the take out of apartment reit, Archstone-Smith Trust, a couple of days ago. RIT consists of a bunch of reits, preferred stocks, and repurchase agreements (unfathomable stuff, repros, to me) in different USA real estate sectors. It's a closed-end fund that sells close to nav. Seems like they are trying now for a consistent monthly dividend; if the div. is sustainable at current .19/sh per month, the yield now is $2.28/$24 or about .095 = 9.5%. That's not possible based just on the dividends of the underlying reits in the fund. It is being done by trading and hedging by RIT fund management. Whether fund management can continue to do this successfully, I do not know. Given the generous (although perhaps risky) yield, the broad diversity of stocks held in RIT, the professional management of RIT by Legg Mason, it's my opinion this stock might/could/may be suitable for a 'mom account' where for a few shares in her portfolio, mom has a shot at spiffing up her dividend income a little. Jmo, and I've been wrong many, many times.