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

To: Grommit who wrote (33514)	2/12/2009 2:58:27 PM
From: anializer	Respond to of 78743

I agree, its a worthy idea to hang on. Yet the market is so chilly and volatile, I've learned to take gains on 30% one day pops as a matter of prudent caution. I'll stay with my remaining DFT and on a gap fill or retrace, may re-up some more. If value meant anything in this market, I wouldn't have so many stocks selling at huge discounts to tangible book value with earnings. All the market cares about is the price of the stock and grabbing gains when it's possible. In that environment, anything goes.

To: Grommit who wrote (33514)	2/12/2009 9:24:33 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78743

DFT - And these assets are not distressed or idle. They are worth full book value. Commercial RE is not worth what it was in Y2007. Even if it's rented out it is worth less due to higher cap rates. Across the board CRE is down 30%. now pack in a 50% leverage (conservative) and you see why most REIT's are down 50%+. Now I agree on DFT being different but i think the higher CAP rate trend applies to them as well. A 9X EBITDA/EV is indeed reasonably cheap but not dirt cheap.