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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: Mr. BSL who wrote (7596)	9/22/1998 11:00:00 PM
From: Les H	Read Replies (1) \| Respond to of 34809

quote.yahoo.com^rix&d=b The REIT index RIX was up 4% today. It also has the most insider buying of the industry groups.

To: Mr. BSL who wrote (7596)	9/22/1998 11:02:00 PM
From: HoodBuilder	Read Replies (3) \| Respond to of 34809

Comment on REITs and O.T. on P&F Although I consider myself an avid stock market player there is one thing I know more about than the stock market and that's real estate. As an industrial broker(warehouses & mfg. plants) for over 15 years I've lived through bull and bear stock markets and bull & bear real estate markets. The primary difference is you can't "short" real estate which is a major disadvantage in a bear r.e. market. Anyway, my primary observation is that I couldn't understand why the REITs were getting totally smacked other than general market downturn because other than 1986, the last 2 years and at least the near term looking forward happens to be the best real estate market I can ever remember. Vancancy rates are at historic lows, office and industrial demand is very strong and interest rates are also at historic lows. IMHO this is a recipe for a great real estate scenario to continue. On a FA basis I would tend to look for REITs that have been relatively conservative in their acquisition appetite, are NOT what I call "roll up" REITS, ones which consolidated smaller REITs to form MEGA REITS to gain critical mass or smaller REITs which got large injections of cash and went on buying sprees. I've personally sold real estate to REITs and I know which one's I'd buy personally and which ones I love to sell real estate to, if you know what I mean. I never understood how these guys can buy property on an 8% cap and pay their investors 8%. Lucky for the investors the lenders have tightened their belts and this has forced the REITs to consider stock buybacks as opposed to continuing their buying binges. On to P&F, when the sector reverses it will be confirmatory in my book. Unlike other sectors in which I wait for the P&F signals, I've been buying my favorite REIT when it was bloody yet still paying a 10% dividend, BTW it's up 15% in the last week. Good luck and there's nothing wrong with collecting a 7-9% yield!