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Cohen & Steers Reit and Preferr Message Board

  • ezmoney8 ezmoney8 Dec 28, 2007 1:08 PM Flag

    I just added another 1000 @ $18.88

    So now my dollar average is $20.4421

    Factoring this months dividends $19.5221

    I expect $1,400.00 of those dividend to be reinvested in the the dollar average is $20.0821

    Monday we should see some buying as the transfer agent will be buying in the open market with the reinvested dividends from the DRIP.

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    • i stand by my previous call of RNP @ $21.90 ish by Jan 31st!

    • Yes chic I saw post wishing for $3 end of Jan. All the highing yielding stocks I have are hit hard. My FRO is holding up best, writing cover calls after FRO gets to $45. have added to my earnings. I was called out two times but bought back under $40. Right now it looks I'll be called out again. RAS hurt me bad. The selling of high yield looks like the dot com days.

    • You are right, the two will become one, NRO

    • ....The press release I saw was that NRI would be merged into NRO?

    • If you bought the $25 IPO, or invested the same amount in a 7% certificate of deposit for the same time frame (4.5 yrs.), the difference between the two amounts today wouldn't buy you a gum ball.

      Add up all the disbursements to date ($15.33), including 12-31-07 and deduct the market value depreciation ($6.05) and now compare the investments. $34.28 vs. $34.23. Hardly any difference.

      The question is, "was it worth the risk?" You basically end up with approximately the same amount of money. At least an investment in real property provided tax advantages through depreciation. The cd provided better sleep. Regardless of your preference, the stated rate of return is highly exagerated and no where near reality.

      GE had an 8.5% preferred that would have outperformed both investments. You got your money back and locked in a better rate of return than the cd or rnp. Prudence requires examination of all alternatives. Selling a covered call on GE every 3 months during this same time frame would have more than tripled your investment.

      Buy PFE and sell the $25 Jan. '09 covered calls. Add the option premium, the dividend and the capital appreciation to assess total return. Too risky? Sell the $22.50 calls. Still a higher yield than rnp. A lot less risk!

      • 2 Replies to srexaminer570
      • There are covered call CEF...but you have to have a 'total return'(reinvestment of dividends) to come out ahead.

        RNP IPO was 6/25/03, I may be wrong but I don't think a CD has ever come close to a 7% yield since RNP's a matter of fact until the beginning of this year CD's were paying south of 3%.

        Just a couple of years ago GE was trading south of $29. so any covered calls you wrote would have been called and you would have missed the run to over $40.

        If if if...sounds like Monday morning quarterbacking. Last year we could have bought Apple for less than $60 now it's near $200.

        So I don't think it's fair to say to oneself, "Oh, if only I had done this or that".

        This month going forward I've invested near 50k in RNP with the idea it will go down more before it goes back up. But I do believe it will go back up. In the time from now to than my dividends will be reinvested...just like CLX and MO...But I'm not investing based on a TA of a chart or some chatter on a message board. I'm doing my research and sharing what I discover.

        I know what RNP is invested in from there SEC filings. If I'm wrong I've put my money where my mouth is, so if I lose money I'm certainly not going to worry my health about it.

        I know I have a better chance of profiting from my investment in RNP than going to the track or playing 'powerball' every week.

        As I said earlier, my best returns will come from my "sweat equity" I put in each week on the job.

        After the holidays I'll be back on the job and each month I'll be getting a statment from RNP's DRIP.

        I share this with those that care to know. I post the NAV each day. I'll share RNP's holdings and the cost struture of their leverage as well as any comments from the management team from there Annual Report when it comes out in Feb. The last report is far too outdated to be meaningful to the casual readers here.

        That's what this message board is for.

        IF IF IF, a frog had wings it would have experience of soaring from when it was a tadpole moving through water.

      • redo your "analysis" on Jan 31st when RNP is $3.00 higher. Most cef's are dirt cheap right now due to tax loss selling by the panicked small time investors that own these things. That as a long time cef investor is something you just have to put up with.

    • What does the average have to do with the stock performance? You can have 10,000 shares but what good are they if they keep going down? The bleeding has to stop! This stock, along with RPF, goes up 1 time for every 12 times it goes down. Having lots of shares mean nothing if they go from $31 to $10!

      • 1 Reply to jc143719
      • jc look back at your post...can we get some cheese with all your wine.

        Let me make clear I'm a DRIP investor...I buy a stock and have the dividend reinvested. $50k in RNP will pay me more than investing $50k in Real Estate and renting it out.

        Back in the late 90's, I think it was '97 I bought CLX, Clorox is a packaging & distribution company. I paid $159.+/shr. just before a 3 for 1 stock split. I enrolled the stock in their DRIP.

        CLX's DRIP allowed me to send in as little as $10.00 for optional cash investments...each month I sent in at least $10.00 but mostly it was $25.00.

        CLX dropped into the mid to upper 20's. But each month I sent my $25.00 and each quarter my dividends were reinvested. I never complained about the low stock price.

        My point is; as a long term investor in so many DRIP's I welcome lower stock prices.

        RNP has been on my watch list for a couple of years. But this month its yield rose to my target of 12%. I boght 1000 shares Dec. 4 @ $21.80. I didn't like the price action so I sold @ $22.08 on 12/11 and bought back @ $20.40 on 12/17 and have been adding since...up to today purchase of my final 1000 shrs.

        I called the Bank of New York(the transfer agent 1 800 432 8224) I have 1000 shrs in the DRIP as of 12/21/07(the X-div date) so my dividends will be in my brokers account Monday, not reinvested. I have a total of 1500 shrs with today purchase I expect to have enrolled by months end but not before Jan 11 the next X-div date.

        I tell you this because you ask. My point is; I'm a long term investor with a time line of over 5 years on RNP. I expect Real Estate related investment to get worse before they get better. You could say; "So why don't you wait?" and my answer is "I make more money with 'sweat equity' working my Contracting business than I do fussing with the market", thats why I like DRIP's.

        jc don't worry, collect your coupon each month and be sure; later this investment will come the SEC filings(I see by today news release I won't be getting a certificate) know and understand what you own.

        And I would stongly suggest you get your RNP out street name into your name so you can be enrolled in their DRIP. Martin Zwieg wrote a book about "Total Return Investing" and the wonder of compounding interest.

        So the bottom line is; I like the low stock price as my dividends will be buying more shares. But I expect a big pop up Monday and maybe into IF you want to get out those would be the days to do it. If you're in near $30.00, get your shares in the DRIP or just collect your coupon(monthly payment) and don't worry about the day to day or week to week movement of the stock price. But than, you can always bite the bullet by selling and taking your loss.

        Somebody please pass the cheese to go with the wine.

19.42-0.14(-0.72%)Oct 24 4:02 PMEDT