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

To: Paul Senior who wrote (43003)	7/20/2011 3:33:08 PM
From: E_K_S	Read Replies (2) \| Respond to of 78516

Hi Paul - Did you see the GOV news today. 8:57AM Government Properties Income Trust priced a 6.5 mln common share offering at $25.40/share (GOV) 26.37 : Stick trading near it's low of $25.15/share. Maybe a $23.00/share entry point would provide a "value" buy entry point. Re: Government Properties Income Trust (GOV) - yield 6.4% Government Properties Income Trust Announces Proposed Public Offering of 5,000,000 Common Shares finance.yahoo.com From the article:"...Government Properties Income Trust (NYSE:GOV - News) today announced that it commenced a public offering of 5,000,000 common shares. GOV expects to use the net proceeds of this offering to reduce amounts outstanding under its revolving credit facility and for general business purposes, including funding acquisitions...." ----------------------------------------------------------------------------------------------------------------------- That's a 12.5% increase in the number of shares. Once the shares are issued and priced, it might provide a good entry into this REIT. Note: I recently cut my position down by 2/3 on 7/2/2011 selling at $27.35/share. Based on a forward PE of 12.75 and the new share count of 45 million shares (after the public offering), the adjusted next year analysts per share earnings estimate s/b $1.80/share. That translates into a $22.95/share price. This one has always been a good dividend payer but it is a little disappointing that management has decided to dilute the common shares. EKS