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Getty Realty Corp. Message Board

  • ContraIndicator ContraIndicator Jul 9, 2003 10:57 AM Flag

    Fair value

    Well, we are now below 7% in yield.
    Something has got to give - unless earnings increase, we will reach a price that will remain constant reflecting fair value.
    I'd suspect we move up a bit, maybe to 24 or 25 and then not see any more price appreciation for quite some time.
    With a yield near 5 or 6%, there will be less reason to bid up the stock price.

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    • By your measure of 5 to 6%, GTY should trade over $28! I agree!

      • 1 Reply to littlerico2_2000
      • <littlerico2_2000: By your measure of 5 to 6%, GTY should trade over $28! I agree!>

        Were it only so! GTY has been one of my most reliable stocks I have ever owned, appreciating very slowly but steadily. There is certainly more exciting action elsewhere, like with IMH and LEND, but the ups and downs of these stocks can make one feel that the end may be near (false conclusion, I believe), but with GTY, you sleep better - rent has to be paid and GTY collects.
        My only question is with the business model - it impresses me more for maintaining the return of capital for its shareholders rather than the appreciation of its share price due to big earnings growth springing from expansion and new markets. This stock reminds me more of a fixed income stock, which was fine with me back when I bought it at 16 and when the yield was closer to 8%. I don't know how many investors will be attracted to this stock at this yield particularly when the stock market turns around and greener pastures can be found elsewhere.
        My conservative "non-play" money is with GTY now.

    • Check earning forcast

22.72+0.38(+1.70%)Jul 29 4:02 PMEDT