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Resource Capital Corp. Message Board

  • j_owley j_owley Jun 11, 2010 10:18 PM Flag

    Concern

    In my previous post I mentioned i have owned this stock for 2 years. My concern is now that I may have fallen for what is known as a value trap.

    I bought in at $ 9.28 and have ridden it all the way down and back to $ 7.50 twice and then, back to $ 5.00 and then share offerings anounced, further dilution. and the distributions and dividends have been reduced from .41 to now .25 for 3 or 4 quartes now. If that trend continues I see the stock continuing on a trend down.

    any insights by long time holders of this one would be appreciated

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    • The statement that "books will be written" about the RSO investment opportunity seems outlandish.

      OTOH, perhaps Exdivy will self-publish a few!

    • actually ex_divy, several people have written well reasoned posts that temper your enthusiasm, but you keep on insisting that everything is 100% rosy with RSO.

      So be it, how can anybody argue against such logic?!? Those of us who are constantly on the lookout for bumps in the road will continue to be that way, and you will no doubt continue to look ahead with your eyes closed thinking RSO is 100% perfect. In the meantime, life moves on...

    • fish,

      >"all you post are outlandishly favorable things to the board."<

      "outlandishly favorable." I don't think so, so why don't you back up your statement?

      You see, fish, that is the difference between a basher/pumper and a reasonable poster. You run your mouth, but you fail to offer any proof that anything I have posted is "outlandishly favorable."

      So, if all of my posts are "outlandishly favorable," you should have no problem finding 4 or 5 of them to post as examples?

      TIA

    • exdivy, I do not perceive j_owley as a basher, but just concerned about the drop in dividend over 2 years. Personally I believe it will rise back up as the market returns to normal. But only seedsbill has the wisdom to predict the future.

      LB

      • 2 Replies to lb4045
      • IB, you are correct. Anyone who differs with or challenges Exdivy's pumper ideas are bashers, idiots, or other childish names he likes to call people. He probably needs to lay off the booze. I've put him on Ignore so I don't have to put up with his nonsense anymore.

      • lb4045 - I think what is going on right now is the new "Normal". Savings is all time high, car sales is flat, banks are no longer giving equity loan (Zero equity for the next 5 years), no one is buying second home, electronic sales such as TV are down except sales on PC. We will see dividend go up, but we may not see $.43 again in the near future. I intend to hold RSO for the next 5 years as long as they can keep up with the $.25 dividend. GLTA

    • j_owley, are you not the same basher who posts as Momenttrader, Diane, and all the others?

      If you really held the stock that long, you know the dividend went down because of the financial crisis.

      Now it appears to be stable (according to you) for 3-4 quarters at $0.25.

      You need to listen to the CCs and then read the transcripts over and over and over. That is how you will learn!

      I find it strange that someone who has weathered the storm from $9 to $2 would now be concerned after going from $2 to $6 - $7.

      You are sooooo transparent!

      GLTU

    • To those who say dilution is bad, I say the interest rate on that money raised is great. Zero %. What is the return on that capitol raised and invested? Past experience, says it has been good. Ask exdivy and seedsbill. I believe that management sees a good deal and jumps at it. Remember that they (RSO) have a lot more to lose or gain than you and I.
      LB

    • J, you previously posted a total of $2.59 in div gain. I bought RSO apparently, the quarter before with a cumulative dividend of $3.00 (+41c) per share.

      Most investors would shy away from any stock paying 18%. It would seem very risky.

      However look at RSO's history. All time high $18.44 ps Jan 07. RSO paid only 10%, then 8% at these high levels. Could we return to that level? Or was it inflated? I don't know. But if RSO is undervalued, that could be why the dividend is so high.

      I do know that (per Yahoo finance) that Walter Beach (director) owns 1,058,911 shares, and Jonathan Cohen (president) owns 894,659 shares. We should be so lucky!!
      You do the math at .25c per share.

      When they sell, I sell. What else would one want to know?
      I can't think of a better investment long term. 6 more dividends at 25c, and my cost basis will be zero.

      LB

    • J... Double down to lower your cost.

 
RSO
13.61+0.16(+1.19%)Jul 29 4:02 PMEDT