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

To: Grommit who wrote (33266)	1/12/2009 3:33:12 PM
From: Paul Senior	Respond to of 78748

Grommit, did you mean HOG? Or is it HOS? "Added some HOS with y'all." Most of these smaller oil service stocks look pretty reasonable to me as buys. HOS would be one. I'm already in several and adding to my shares in them, so I'll pass on HOS.

To: Grommit who wrote (33266)	3/5/2009 8:03:14 PM
From: E_K_S	Read Replies (2) \| Respond to of 78748

Hi Grommit - I finally got my fill for HRPpD shares today. There were over 80K shares traded so it appears that some one wanted out. Based on today's close, the yield on this series preferred is now around 20% again. These shares go into the IRA account. I may buy some at lower prices for my taxable account for a bounce trade. The company recently announced an IPO offering to establish a subsidiary that contains 29 of their Government leased properties. They plan to sell 51% of their IPO shares keeping 41% ownership. This should raise $288 million that can be used to pay down debt and/or supplement reduced cash flows from any unexpected rent roll reductions. I think this is a brilliant way for the REIT to establish a source of liquidity w/o fireside sales of property. If need be, they can sell shares in this subsidiary to raise additional capital if future refinancing market are constrained. HRPT Properties subsidiary to go public HRPT Properties subsidiary Government Properties Income Trust to go public finance.yahoo.com There is a small dilution factor to their common shares with this strategy, so the company announced their intent to buy back common shares using the money saved from their recent dividend cut. I believe the different series of preferred shares are safer now with this new structure as the company has a liquid source of funds that can be used as a fall back position if future debt refinancing becomes a problem. The common shares are selling at 70% below Book Value, so they really can not raise new capital by selling more common shares. However, based on the over subscription for this IPO (The Government Properties Income Trust), they should receive close to BV for these properties. Government tenants are consider the best renters since they always pay their rent. They will get a premium price for these "crown jewel" properties even in this sour economic period. I passed on the LXP preferrds as their common hit a new low today. This company may be at risk for much lower rent rolls in the future (based on the types of properties they own lxp.com ), They have too much exposure to retail. Notice the Circuit City and K-Mart properties they own. EKS