Concerns are: Tenants not diversified by industry; tenants won't be financially strong enough; and landlords don't like restaurants.
According to WSJ article published June 11, 2013.
In this age of electronic banking, only two luxurious super-sized bank branches are really needed: One in VA; one in NC.
Insurance isn't a growth business ... just slow and steady.
Realtors will inevitably go the way of travel agents.
Other little businesses are a distraction.
Large "fee income" really just penalties that make customers mad!!!
Even the doubters have to be surprised at how poorly this performed ... things must be bad.
Significant competitor Monarch Bank (MNRK) has a similar mix of businesses; much of the market area overlaps; has a lower P/E and slightly higher P/B ratio; has analyst coverage; institutional shareholders; files with the SEC; highly regarded management; clean balance sheet; already promotes its stock; and as a smaller bank is more of a buyout target.
Aha! Fact volume is so high but price isn't moving up means ... they are already unloading!!!
When one has the right name on Wall Street, they can do that ... unload without driving the price down, that is!
Franklin had some heavy hitter Wall Street type investors. Now they hold TOWN.
They call over to Barrons ... talk it up ... then in a few weeks they will unload it!
Need more top line growth ... don't see it!
Q. How long can you keep talking about this mythical REIT you don't have? I mean, at some point, isn't the SEC going to step in and say you can't do that forever?
A. What do you mean?
Q. ... like for securities law purposes, isn't there a difference between plans and fantasy?
Something has to be deeply wrong. Deep in the vaults ... nothing is there?
Hate to see what will happen when they give you another one of those conference call tete-a-tetes:
Q. "How's the REIT going?"
A. Well ...honestly ... it's a little hard to get investors. You know you have these RICO laws where someone can score a little hard stuff on your property and the Feds can confiscate your real estate. Then ... who knew? ... a lot of the states have similar confiscation laws. So the perception is this could be a little risky for an outside investor, since you don't know what's going on in the properties.
Here's what investors are missing. Rental rates are tied to the underlying values of the property. If the properties appraised higher (oh yeah ... sure), it means the rental rates will also be proportionately higher. So the net gain to RICK by a higher realty value is ... guess what?