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

To: Tapcon who wrote (36439)	1/12/2010 9:45:13 PM
From: Paul Senior	Respond to of 78753

GOV. Each stock discussed here should stand on its own merits. If it's a fit for the reader, then the reader might buy or consider buying. If not, something else, maybe of a different sort entirely, will be mentioned later, that could be considered. That said, some guys here seem to have a pretty good history for picking value stocks that move up. (Jmo. From what I believe I can discern.) So sometimes it pays to consider the jockey as well as the horse. My opinion is this: When grommit speaks, listen. When EKS speaks, also. ============================= With dink companies, I can buy a few hundred or more shares, and if they do well, the percentage gains can be substantial, and the small dollar amounts can add to increase the portfolios' value. And if one or a few of these stocks crash, it's no big deal. (So I tell myself, although I know I will at least moan and curse. -g-. Maybe cry.) With something like GOV, to make it pay, imo, if someone has a diversified and sizable portfolio (however "sizable" is defined), to make any money on GOV, the position has to be fairly large - larger that is than the $ amount held with a dink company. (Although, perhaps with GOV's recent birth and its relatively small size, it itself could be characterized as a dink company.) With GOV, I am ASSUMING I am dealing with a conservative reit where the yields perhaps might very well outshine any capital appreciation of the shares. If I'm wrong and the stock craters or even declines and stays there, I am going to get hurt, since I am weighting this position more than many of my other stocks. (My weighting doesn't mean I'm any more knowledgeable or confident about GOV than I am about any other of my holdings though.)

To: Tapcon who wrote (36439)	1/13/2010 2:35:30 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78753

GOV does not have it's own management it's contracted out just like HRP's, as I understand it. the asset manager get's paid a percentage of assets, so i would expect that they grow assets in order to generate more fees, whether that is beneficial for shareholders or not. That is how it worked out with HRP at least. That said the same management never screwed up badly either and overleveraged the REITs it has been managing. one thing is for sure, I would not bet on much share appreciation with GOV just the way their management company is incentivised.