newMK, I still see very little happening on the syndicate calendar with REIT's on the equity side. They did develope a dirty name over the last 4-5 years with the amount of offerings they did. But Wall Street will always love someone who regularly lines their pockets. And their always seems to be plenty of new dough if it's a good idea. Litt's was not. Hotels was not.
Cleo..the beauty of dividends, I don't need the stock price to go up to get some very exceptional returns. In 2-3 years, I'm looking at getting 20%+ a year on money I invested today. If the price goes up I can't add to it and keep getting those returns. See how the game has changed, you own an income investment now. Of course if the dividend doubles in 3-4 years I doubt the price will be the same. But the future at that point might still be for new money.
Over all I a bear on the market as I sure comes as no surprize. Most of the stocks I buy have heavy book values. The last thing I want is a 60 P/E stock hoping their is a greater fool coming down the road.
NO GROWTH company IMO will even have a smell of the syndicate once the ball game changes, you'll have to have a edge,i.e. yield. Institutions like Insurance companies are not going to just stop investing usless no pays their insurance bill. I feel in the coming years we'll see more of a shift to "fixed" income investment. As soon as the stock market stops offering 20% returns IMO institutions will not want the risk anymore. This shift of the equity market cap being 235% of the bond market will shift again. And who do you think benefits?
Of course the scary part of a REIT is they seem to fall apart fast once the equity drys up. But is it the chicken or the egg? Which drys up first the margins in their portfolio or the new financing? I think PZN proves it's the first that leads to the second. I think in many of the REIT's it was well known over a year ago the price of the properites had appreciated to levels that made no economic sense.
I have recently started to trade PZN with good results. I am thinking about buying a large position for long term as the yield should be at least 12% this year and the company forecasts a 15% annual growth in cash from operations. If so why is this stock so low? Are these estimates to high? Is the cash flow what the company states? Is it better for the company to operate as a REIT? I to am a value investor seeking safe yields does PZN fit this bill?
I would also like some info regarding which firms follow PZN and their analysts current opinions if any one could please provide.