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

To: George8 who wrote (33906)	3/20/2009 8:21:36 PM
From: E_K_S	Read Replies (2) \| Respond to of 78744

George8 - This is the question the market is trying to figure out. If you read several of the posts on this thread by Grommit and Spekulatis you might get a better feel for the risk. Just do a search on the value Investing thread for "BDN" and all of the posts will show up that you can review. Here are a few. Message 25428024 Message 25432513 I have focused on buying just the preferred series and am spreading my buys over a small basket of (hopefully the survivors) of REIT companies. I also have an exit strategy that provides some hedging (short common or buy Puts) on the common shares if dividends are terminated and/or common stock dividends are initiated. It appears that BDN management is considering paying a portion of their future common dividends with newly issued shares of common stock. This would dilute the common shares outstanding if they use this strategy for several dividend cycles. The positive is that with the Feds recent announcement of QE (Quantitative Easing) of over $1 Trillion should provide the sector a lower cost of funds (and more liquidity) for future refinancing and roll over of their LT debt. I am not too sure how all of this will play out but believe that the preferred series provide a compelling "value opportunity" at $0.36 on the dollar. I will continue to be a buyer if new lows are made and the REIT sector doesn't crash too much further. The concern investors have with all REITs in general and specifically BDN is that FFO numbers are going to get worse before they get better. The big question is how much worse and are we in the the 3rd or 4th inning of reaching the trough or in the 7th or 8th inning. It's a moving target and from many of the recent analysts reports it's going to take longer perhaps 12-18 months before any stabilization of the FFO numbers occur. Hope that helps. EKS