Omega Healthcare Investors Inc. Message Board
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Reason for price decline
I've been researching this company for quite awhile and it seems sound to me with a high and safe dividend. I've wanted to buy in, but the daily price decline is bothersome. I've decided to wait.
Does anyone know the reason for the sell off from $25? It is approaching 10% in a very short period of time, and I can't find any news to warrant it.-
Impending possibillity of Obama re-election my guess.
- 1 Reply to doowop59
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Threre is fear of drastically reduced government spending after the election such as big cuts in benefits to the aged.
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Keep in mind that a lot of acquisitions seem to close in 4Q now, which will probably mean a fairly sizable secondary offering to fund the growth. They just raised the dividend by $0.02 to $0.44, so maybe that will help firm up the stock for the next offering.
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I'm in the same boat. I'm looking to open a position but I'm going to wait and see where this stops. I'm not really worried that there's something wrong with the Co./model as I feel it's a safe dividend grower. I just want to get in at the best buy possible. A good buy is half the sell, right!
- 2 Replies to bmc3004
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Exactly the way I'm playing it. Good luck to you if/when you do step in.
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So you waited and yesterday it jumped 1.6%--so what do you do now? If you like a stock and the price is on a decline-IT"S ON SALE BUY IT!! I don't get it why people are more comfortable buying a rising price stock vs a declining price-if the fundamentals have not changed why not take advantage of a lower price. The chances that you will have the best buy possible are slim.
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Did you find any news that justifies the run from $14.60 to $24.75 in the past 12 months? Could it be that investors are simply taking some profits off the table?
Sentiment: Buy
- 2 Replies to durianlover669
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It looks like a classic Fibonacci retraction. I suspect the selling is tapering off, and we may see recovery back up to $23, and probably hang around there until the next batch of news.
But if we see a October crash, all bets are off. This stock could see the $20's in such an event.
I bought a modest position at $22.85 -
The revenues have increased over the past 12 months, and the dividend has been raised twice in that time. That justifies a price increase rather than a decrease in share price.
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