iBankCoin
Stock advice in actual English.
Joined Sep 2, 2009
1,224 Blog Posts

(Update) REIT Investors Have Lost Their Minds

Would one of you care to enlighten me as to why the entire REIT space is getting utterly decimated?

What the shit; is the U.S. homeownership rate going to 98%? Is occupancy of national rental units plummeting to 0%? What is the meaning of this outrage?

I’m just too tired to deal with this travesty. Especially with regards to the rentals (which is what I’m specializing in; luxury no less) why the hell are they selling off with the pack? They aren’t even in the same business model.

I nibbled on more AEC today, increasing my position by about 5% (.5% of my assets), for $14.58. Someone, somewhere is eventually going to have to acknowledge that selling off an REIT which specializes in renting alongside other REITs that specialize in property asset appreciation or mortgages, is RETARDED.

The same can be said for CLP. Only, I’m not ready yet to add to that. The timing isn’t right; it first goes a little lower or I take a pass.

Listen up, you; I’m extremely busy today so pardon me if I ask that you get the fuck out of my office. The 9th floor is closed for the rest of the day; a solemn pledge of mourning, if you can follow me, for this abomination of a development.

* One last thing before I slam the door in your face again. I shorted more UCO for $26.68 on the off chance that REITs are not simply bleeding out, but rather are forshadowing pain to come. If we rush higher, then I’ll consider doubling my UCO at whatever price it arrives at when the market gets overbought, all as measured by The PPT of course.

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13 comments

  1. franky

    lol! enjoyed the post

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  2. Ol' Jack Burton

    Safety and income being sold today (REITS, utilities, staples) in order to chase short squeezed oversold crap stocks.

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    • Mr. Cain Thaler

      That I could understand.

      But who chases to 4% losses so that they can participate in a short squeeze which probably won’t make it to Friday?

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      • Ol' Jack Burton

        Geez, if you can figure this market out, you win the kewpie doll. Sometimes it just seems like a concentrated effort from who-knows-who to stop/scare people out of a position so they can load up cheap.

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  3. john M

    great post. i think REITS are where the shorts get squeezed next…if not today, then soon.

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  4. Yogi & Boo Boo

    I think 90% of the Bozo’s that buy REITs don’t understand what they are doing. It’s probably the same group that was buying $KMRT when it was in BK thinking it was cheap at $0.75, and if they held it long enough they would be millionaires.

    True story: A friend of a former co-worker had as his investment/retirement plan to accumulate $SIRI under $1.00. He was going to hold it until it was above $23.00. That was his plan. Hold it until it got to $23.

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    • The_Real_Hmmm

      Funny you say KMart because the guy who did buy up all of their debt in bankruptcy and did a debt for equity swap became a billionaire. This was because the debt was secured by the real estate the corporation held, which was not held on their balance sheet at market value. The man who took this risk is no other than Eddie Lampert, owner/CEO of SHLD/ESL investments. Granted the original equity holders were zeroed, there is a valuable lesson in this scenario.

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      • Mr. Cain Thaler

        Well said, Hmmm.

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      • Yogi & Boo Boo

        Thanks for clarifying @Hmmm. That was the point I was trying to make. It was possible to make money even on the common. You just needed to wait until it came out of bankruptcy. (Unfortunately, I passed on taking a position when they did, and kicked myself for a couple of years. I’m over it now. 🙂 )

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  5. drummerboy

    didnt see this post. before i posted on flys’. here is a ripe new market that they will leach on to because real numbers are coming in on occupancy, price, and force in the demand since people have gone foreclose. now they want to do to the rental reits is to knock a couple of knees to hop on another sure thing. and how could it not be? because it is, a few months from now,”it will be a new bubble”. 3 flats- 6 flats top bucks in demand and gig enough for families. perfect set up. one could develope a thesis around those variables. here, let me pound the price of silver down for ya jamie. hello margin hike? same poop

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    • Mr. Cain Thaler

      I hope you’re right. If AEC and CLP hit $10, I’m going long margin.

      Call me on this.

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  6. Duh

    I want to put on a short commercial retail REIT / long residential apartments REIT trade. Would like the long to not have alot of short term debt that needs to be rolled soon and vice versa on the short. Does any one have any names to suggest?

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  7. boomrblowup

    reits are the banks baby. mama outta cheese?

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