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

To: Spekulatius who wrote (27565)	8/2/2007 11:55:02 PM
From: Paul Senior	Respond to of 78751

RIT. That's right about the nav discount. From the graph on the link I gave, I see that both nav and RIT price have fallen. I'm guessing if nav falls further RIT price will not. That's because RIT's high annualized div. yield, now $2.28 annualized on an $18.58 share price, already promises a yield over 12%. That should or could put a floor on how much further the stock price might drop. A floor unless we see some bad news coming out from RIT with its reit holdings or money management. Legg Mason took over this fund (RIT) when they bought Citi funds. They changed RIT distribution to what I believe they believe is a more stable monthly dividend. I hope it will not decease, and so I'm hoping/expecting the $2.28 number to hold. If the underlying reits that RIT has do turn up, I expect RIT share price will rise too. Lagging up though, because I figure RIT stock will again drop to a more normal discount to any newly improved nav. And if RIT doesn't move up, that's okay with me too - I tell myself-g-, because if RIT just stays where it is, I'm getting or expecting to get, a 12% return on my money at this buy in. (And some of that will be return of capital, for less immediate tax consequence (as a USA taxpayer).)