Why does ARR stay at such a low dip @$6.84 when the book value has risen last qtr
(sept 30) to $8.21, a 17% discount? With the cash position improved from a year ago. it seems strange the price continues to lag.
Why are you complaining ? I'm using this as a buying opportunity. Why don't you ? You never know what will happen next year, and this is part of my income. As a retiree, I am trying to have as much income coming in as possible. So I am in for the long haul.
When I do a stock screening, I find that almost all mREIT stocks are trading below book value. My guess is that investors are wary of at least 2 major issues.
#1 is how quickly the valuation of a portfolio can change. The portfolio valuation = most of your book value.
#2 is how arbitrary (though accepted as common practice) the methods of valuing the portfolio are. The valuation models are based off of user inputs and users applying their own weights to those variables.
This isn't to say these models are purposefully misrepresenting the true value. These mREITs typically will hire 3rd parties to compare modeling results.
I believe everyone is waiting for a 'Deal' to be reached in the 'Fiscal Cliff' talks. The
betting is that a deal will be struck before Christmas. So don't sell now unless you're
sure there will be no deal. You could miss out on a big jump in Share Price.