Another tranche buy Bid filled @$3.40, slightly above the previous all time low. I have another bid just above $3 and if filled that will be 50% of my total basket. I will then set bids in the $2's and the $1's. If it never gets that low, I am comfortable with what I have and will look for another distressed opportunity.
We hit the all time low and broke through suggesting that lower lows could lie ahead. This week will be dominated by flippers. Once they leave, the paint drying begins. This is the boring period where some longer term investors, now underwater, lose patience and sell. So, a slow bleed down could follow this volatile period especially if the distribution cut is enacted. Of course, overall market volatility could shake down things further.
On the positive side, markets tend to do very well in the six month period following the US mid-term elections. Secondly, Inovalis is no fly-by-night operation. They are a large real estate management corp with this REIT a component of that. Despite the fear some may spread, the banks are unlikely to foreclose on them. This will not go to 0.
Demand for commercial property around the globe is changing. They, along with many other commercial REITs, will need to update their portfolio offering to meet that demand. This, unfortunately, is not an overnight feat. It introduces uncertainty which investors hate. So, this has now become a turnaround play. With patience, one could do well here.