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Non-Tech : Mama Bear goes long! -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (26)	8/6/1998 7:46:00 PM
From: Bonnie Bear	Respond to of 131

I own a chunk of FUND- it's holding a big chunk of Treasuries so it's not very volatile. BTW, I just picked up something interesting. On Russell issues where there's both preferred and common stocks, somebody big (like hedge funds) seem to be shorting hard on the stocks while holding the preferreds as an arbitrage. They can then sell the preferreds (especially if interest rates drop) and pick up the common after it has been shorted to death- maybe after the big kahuna hits the big guys. This combination of preferred and common is found on REITs, energies, smallcaps, a few CEFs. The prices on RFI and RIF keep getting better and better, the whole REIT sector is getting crucified. So my guess is that a big hedge fund moved into the market. RVT is way below its NAV, it must be at a 15% discount here. You're at bottom-of-1990 prices here. Ditto OTCM. They probably didn't bother with FUND because it holds so many bonds. If I was going to set up a portfolio for retirement in a slow-growth, no-inflation world, I'd be looking for HMOs, healthcare REITs, energies, utilities, a few value stocks. Stuff with high dividend yields and steady customers. Not drugs- the patents are about to expire on most the useful ones. Interesting that these sectors are getting the worst abuse right now and selling below book value, eh? Buy low- sell high:-)