I see the number he's talking about. It's the one just below the stock chart. My only advice to the fellow would be to realized that this is a REIT. REITS work a little differently than many other kinds of companies.
Find out how this business works first, then you'll get it.
Current consensus EPS estimate shown in Yahoo for 2003 is $2.60, so I'm not sure what the number you refer to is all about.
As we have discussed here recently, the dividend is within 10 cents or so of being fully covered. The company is getting closer to covering the shortfall, which is one fo the main reasons the stock has rallied so much over the past few months, as the stock is now being valued in line with its peers whose dividends are also covered and considered safe.
For more detail on their results for year-to-date 2003, go here:
If I told you, I'd have to kill you...
Really, no plan. I'm content to just hold for now. But, in the future, it's nice to have options.
Today, the opening bid/ask premiums seemed high for puts, and not so high for calls.
This probably reflects the fact that there is probably greater demand for puts, for profit-protection, than
demand for calls to speculate on higher prices. If you are expecting higher prices, it makes much more sense to simply buy the stock and get the dividend than to buy calls. Most investors who would be interested in REITs are not speculative call buyer types.
So the pricing seems to make sense.
The best advice I can give you about options is
stay away from them. They have limited usefulness and, as a speculative bet, they
are worse than what you get in Vegas.
We are doing additional research on this and will post a response here or address it in a press release, as appropriate. Trading volume, institutional & retail investor trading levels and market pricing volatility are several of the factors that impact the overall benefits (or not) of encouraging an options market. We'll complete a thorough review and report back to you.