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Resource Capital Corp. Message Board

  • vivaldivenice vivaldivenice May 11, 2010 8:24 PM Flag

    WHY was "RSO" down 17 cents per share today when all other major REITS are way up?!!!

    WHY was "RSO" down 17 cents per share when nearly all the other major REITS were way up?!!!

    RSO down 17 cents (-2.47%)

    BKCC up 11 cents (+1.03 %)

    AGNC up up 14 cents (0.51%)

    HTS up 12 cents (0.46%, etc. etc. etc.

    I am about $9,400. invested in RSO. I've been in RSO for several months having bought my initial $5K worth of shares on 02-18-2010 (at $5.70 pps) and then added about $3300.00 more on 03-02-2010 (at $6.52 pps). My current averaged cost basis is $6.07 per share with an unrealized capital gain of $989.95 (which was about $1200.00 gain before RSO dropped 17 cents today).

    Any explanations for today's large drop in RSO?

    MORE IMPORTANTLY, should I sell all RSO now and hope to buy it if it dips below my cost basis pps of $6.07? Or should I buy more shares anywhere above my averaged cost basis? (i.e. between $6.08 and the present pps)?

    My plan is to cash in my shares to preserve my $989.95 capital gain (before it gets eroded by any further decline in pps) and then buy $15K worth of RSO when RSO bottoms (whenever that will be--hopefully within the next several weeks).

    All you savvy "longs" in RSO, please help this new investor! I know you are all very smart and seasoned investors and I am so glad to have all you aboard on this message board!

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    • .....VV a lot of good comments on why should you sell, hold or buy more RSO! Most investors like to trade stocks for a few bucks here and there! On the other hand you can load up and get a handsome dividend every quarter...mine will be $1625.00 next trip unless RSO cuts the dividend. I just sit back and watch the $'s roll in!!!!

    • Thanks for your suggestion.

      As I said, I regret if someone is offended that I used the "p" word. I don't think that its use is beyond the standards of good behavior on this board and regret if the expression is considered impolite by someone.

      In the "spirit of good behavior" let's please not start becoming censorious.

    • FWIW, a couple of points.

      1. You do not need a land line telephone any more. Just get a cell phone. Sprint is pretty "good" and senior "friendly". For less than 50/month you get about 1000 minutes and night and week ends "free".

      2. You do not need cable. They are mostly "rip-offs". Just get a good "internet" service alone and watch a lot of stuff online including Bloomberg! I get all my news and market related stuff online. Look into CLEAR internet with 4G technology if available.

      3. Use McDonalds for breakfasts. They are the most cost efficient and quite nutrition oriented in spite of the bad hype against fast food. Use Walmart for groceries. Also Aldi super markets are pretty inexpensive to shop.

      Good luck and good health to you. I have gone through some but not all the "hard facts of life" myself.

    • The only thing missing on this board are bashers that have real insight or real argument. Sometimes we need them to be cautious and other side theory.

    • Vivaldi, This thread shows why the RSO message board is different than most 99% of the others. Bad behavior is not tolerated and we generally care about each other. My only advice to you is to quote Robert T. Kiyosaki (Rich Dad, Poor Dad). "The poor and the middle class work for money. The rich have money work for them." If one thinks of the market as a slot machine, surly we loose.


    • No offense Vivaldi, but as I have been reading your posts here and on other boards that we share and you seem to me to be waaaaay too impatient. You appear to be jumping in and out of investments without understanding well what you're buying into. You buy and a price falls and you're out and on to something else. You want to know crystal ball answers to when you should buy or sell when no one knows the answers to your questions.

      No one can answer your questions helpfully because they don't know why you are invested in a particular stock or fund in the first place. And don't tell me it's to make money. Everyone invests for that reason. But without knowing your age, your purpose in an investment, your asset allocation strategy, your level of risk, the totality of your portfolio then no one can competently give you sound advice. You just can't.

      For the three REITS you say were up today and you want to know why RSO was down, I can give you three REITS that were also down or unchanged today: ARCC, NLY, and ARRM was unchanged and CIM was only up .25%.

      I get the feeling you're approaching investing in a kind of frenzy in search of quick profits and you don't have the experience to be able to do that.

      Should you sell RSO now and preserve your very modest gain and then buy when it bottoms? Well, when will you know it has bottomed? Are you going to ask members of this board? And you are going to trust that they know?????

      My advice is to hold onto your RSO and don't watch the daily prices. Unless you need profits to pay for heart surgery next month brought on by your helter skelter buying and selling, I would suggest buying and waiting patiently for RSO to give you a nice profit in a year or two or three.

      • 6 Replies to fredkane3947
      • vivaldi..

        A truly excellent post!!

      • My five stars put you all in the RED. He is like I was 20 years ago. This is not Las Vegas,though one may be so inclined to try to play it that way.Many an investor has lost it all or almost all by just bouncing around to the newest "HOT ONE". When it starts dropping....ya think it will never stop. Almost as bad as when one gets in on a roll and think it will always rise. Somewhere there is a middle ground. Find it,enjoy it and collect the outrageous dividends. OUT

      • Thanks for your suggestions! I like them and I like the sense of stability you have. I find it difficult to be patient with anything these days. I have been out of work over two years due to disabilities. All of what remains of my life savings (I'm 53) are invested in my Portfolio which consists of a regular self-managed broker account and an IRA investment account. My IRA account consists of: AGNC; ANH; ARCC; BKCC. My other broker account consists of: AGNC; BKCC; CIM; FTR; HTS; MAIN; and RSO. Total investment fluctuates between 48-50K.

        I need to generate as much dividend income as possible to supplement the meagre monthly check ($977.00) I get from social security. I am being gouged every month about $1300.00 for space rental with utilities (I live in a mobilehome which I own completely but which occupies a space for which I pay monthly rent). I also have about $800.00 per month going out to pay down my credit cards (total debt around $30K).

        I am always worried, watch the markets about 5 x per day and feel there is less and less stability in this world as each day progresses. Sorry to be so down--but this is definitely not the best of all possible worlds!

        Any suggestions?

      • tulsadevlin May 11, 2010 10:52 PM Flag

        Yes, good job Fred. I gave you five stars.

      • Well written!

    • I don't believe anyone can tell you exactly what to do.

      RSO pays a very good dividend, so one must take into account that factor.

      However, some people decide to purchase a "core position" of shares, which are held for the long term dividends plus capital appreciation. Then they also purchase "trading shares" which they buy and sell to make short term capital gains.

      • 1 Reply to ghost14609
      • Thank you very much! What you said helps me to clarify my investment strategy regarding RSO and the other REIT stocks in my portfolio.

        I hope this non-sense in Europe is over soon! The deal was cut: the German Parliament voted, albeit reluctantly, to bail out Greece and the IMF, EU and USA Banks have all pledged loans totalling well over one trillion dollars! So why are the US investors still acting like scary whimps and selling stocks to buy gold?
        I love gold but my timing on gold investments has always been lousy!

        If gold keeps going up I may buy $1K in each of the major gold-mining companies (I sold my position in ABX Barrick Gold) the other day and can now kick myself that I did--because ABX was up $1.97 per share (+ 4.49%!!!).

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