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Cornerstone Realty Income (TCR) Message Board

  • barrygio barrygio Aug 20, 2001 12:01 AM Flag

    sell recommendations

    According to Yahoo, two brokers have a sell recommendation on TCR. Anyone know who these analysts are and what their rationale is?

    I'm no expert, but I compared financial statements of a number of REITs, and thought TCR looked o.k. That fat 10% dividend is tempting, but is it safe?

    TIA
    bg

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    • "With CD's and Money market and even Savings Bond yields so low, apartment house REITS look good and should remain stable. People don't have to go to Malls, public storage, Hotels, or even rent new office space, but they have to have a place to live; Also any well established Housing REIT can get great interest rates right now to build or aquire new assets."

      Good points Tony. TCR is solidly positioned now for increased FFO going forward & when the investment community recognizes what you mentioned this REIT should start showing price appreciation along with the dividend.

      A win win situation now for holders of well established apartment REITS.

      tm2618 Best to all.

    • Just some thoughts: People who were going to buy a home can't now, might not have that high paying job anymore: People who love REITS sold Hotel and Shopping Mall REITS ( I wasn't quick enough) and still want to stay in REITS: With CD's and Money market and even Savings Bond yields so low, apartment house REITS look good and should remain stable. People don't have to go to Malls, public storage, Hotels, or even rent new office space, but they have to have a place to live; Also any well established Housing REIT can get great interest rates right now to build or aquire new assets. Just my thoughts, Tony

    • My one gainer out of a diversified 30 holdings today. Any special reasons anyone knows of?

    • "but is it safe?"

      The short answer is "no". The long answer is the risk of a major cut in the dividend is pretty low. But the liklihood of the dividend not growing over the next year or so is high. All you really need to know is in the last quarterly report. Just my opinion of course.

      I do think it is a pretty good investment. There is also the chance of a buyout.

      • 1 Reply to Polytechnic_Trader
      • A 10% plus yield is huge - the S&P 500 doesn't average much more than that - so if the dividend does not grow I would certainly not be disappointed.

        Can you tell me why you think the chances of it being slashed are low? I compared, among other things, sales-per-share to dividend payout per share, and TCR looks fairly strong compared to other REITs I looked at, in that respect.

        At any rate, I think this is not the ideal time to make a large, single purchase of a REIT. Too many money managers and stunned individual investors are putting money into the sector. I'm thinking, either wait and see what happens to the stock price of REITs after the economy picks up, or cost-average small purchases over an extended period.

        good luck
        bg

    • Take it from one who had 13 analysts give Marchfirst (Tech consulting) a strong buy all the way from $90 to $2. I had it from $19 to bankrupt and gone. I wouldn' go by analysts anymore than flipping a coin. Tony