By analyzing RQI's holdings as of 9/30/2008 in contrasted to their 6/30/2008 holdings several interesting items appear.
1. Market Value of total assets at 6/30/08 and 9/30/08 is roughly unchanged. Think about the significants of that. 2. Sometime during Q3, they sold roughly 1/2 of their GGP position. On 6/30 GGP was $35 and on 9/30 it was $15.50. I do not know when they got out, but they did get about half of their investment out. The 410,000 shares they sold at a minimum would have dropped another $4,100,000 (today it is at $5). 3. All of the complaining about their GGP position was, in part, over blown. GGP as of 9/30/08 is only 0.71% of their holdings. 4. They also "trimmed" 8 other positions included in their top 32 top holdings. Most of this pruning revealed no material price decline from 6/30 to 9/30. 5. RQI historically traded at a slight premium to their NAV. It is now trading at a discount to NAV. On 10/10/08 the discount was a wopping 45% while on 10/20/08 it had dropped to 12%.
Please compare the 6/30 and 9/30 holdings and see if anything else strikes you.
The NAV has really suffered lateley. Of course all the other REITS I own have too. The problem is that RQI is leveraged. Hence, when they go down it does so leveraged. If it quickly recovers it is not a problem. Otherwise they are paying you out of capital and you may never have a chance to recover. Also at these low prices their fee becomes a large % of the return.
Some of my REITS are selling at 25% of liquadation value. It is insane. This selling has no rational at this point. Forced liqudations and redemption is occuring like never before.
This selling climax I hope will come to an end soon. Everything is being trashed lateley. Even FCX is down over 80%. The stock is selling at 2 times cash flow.
This extreme selling is either likely to end on Tuesday which is 3 days from the mutual funds end of year or January 15 the end of the next potential massive redemption cycle.
Yesterday, 10/24/08, the NAV discount was 2.14%. On the 10th it was 45%, so in 2 week the gap closed from a 45% discount to a 2.14% discount.
To me it means thoses that wnted to or had to get out of RQI are now out for now. This does now speak to the quality, or lack there of, of RQI. It just means the discount sale pricw of RQI is over for now.
davidd, where are you accessing the RQI holdings data from? The C&S homepage? Just wondering, because you are speaking my book!
I have confidence in this management as they have pruned wisely in the past. The 10/10/08 date is a little bit of cherry picking as everything under the sun was heavily discounted that day. I added to my position too soon, about two weeks earlier, as the price to NAV dislocation seemed irresistable. Anyways, I continue to hold.
C & S web site as of 10/15/08 posted RQI's 9/30/08 holdings. The 9/30/08 holdinds list only shows security name, shares owned and % of the holding to the total holdings (no dollars). Asa an example, you can look up the 9/30 ending price for GGP and then do the math.
The C & S site also has the full 6/30/08 RQI Financial Stmt. By comparing the two, you can see what they are doing. Granted, they do not come out and tell you, but the the story is there.