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: Brendan W who wrote (28477)	10/11/2007 8:33:36 PM
From: gcrispin	Respond to of 78634

Thank God I didn't invest in SUI five years ago! Actually, if you look at the ten year financial data listed with Morningstar, it shows that the company was consistently profitable from 1996-2003 earning around 185 million in net income during that time period. As you correctly pointed out, the company has lost money starting in 2004 to the tune of 70 million. Looking at a price to FF0 ratio, SUI appears quite reasonable. My combined purchases average about 26.70 a share which is around a ten price to FFO ratio which looks very reasonable in comparison to 17 times for REITs overall, according to data provided by BMO Capital Markets. Regardless of what time period you select, I am basing my investment on a turn in operating performance. Unfortunately, the company doesn't archive CCs, but I was impressed that Gary Shiffman, the CEO, explained that the company's decline resulted in sub-prime financing that allowed borrowers to buy a 170,000 dollar starter house for no money down. In his words, he said the company got its @@@ kicked by sub-prime financing. What SUI is currently offering is a $70,000 MH with cathedral ceilings, but no basement. I think his suggestion about the company's troubles being due to sub-prime financing is somewhat corroborated by looking at the ten year financial record, and I'm willing to collect dividends that are covered by the FFO while watching to see if the company's financials improve.