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Strategies & Market Trends : REITS - Buying 1 - 2 weeks before going ex-dividend -- Ignore unavailable to you. Want to Upgrade?

To: blankmind who wrote (553)	1/5/1998 11:32:00 PM
From: Richard Barron	Read Replies (1) \| Respond to of 2561

Blankmind, The problem is that BOY will gap down on 3/27/98 by approximately .45 leaving you about even netting the price drop with the dividend collected. The trick is to buy some around 3/15/98 if it is trading near the low end of it's normal range, (i.e. near 25) and then sell some around 3/30 near 26, giving a quick $1 in profits and another .45 from the dividend. Most REIT's will not trade at the low just before the dividend, unless it is ready to break apart technically, which most REIT's don't do very often. AGT was under 25 for a day on 12/15 and went ex-dividend on 12/30 - 3 (12/24). It has recovered to 27+ in just 3 weeks giving a potential $2 gain and the dividend of .4275. This is an ideal trade to make giving almost 10% in 3 weeks, annualizing at 100% return for a year. KPA, MLS & TOW were a few to have picked up around 12/19 for a dividend and a 5-12% profit. in 2-3 weeks Peter, I sold 70% of my PAG today. I actually sold about 15 REIT's today as I had 5-12% profits in 2-8 weeks on most of them. Not too many are on my radar screen for buys right now. I need to see a few days of trading to determine what is happening. Hospitality has the most bargains, but they are also risky due to the negative sentiment on the street. FCH, ENN, BNP, DDR, PAH and VLANS are all interesting especially ENN which had a lot more insider buying at 15-1/16. I may stay in cash for a few more days (I'm about 25-30% cash now). If the Dow doesn't get over 8000 before the end of the week, I might buy some puts for a few days as the resistance is building at that level. regards, Richard