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American Hotel Income Properties REIT 6 00 Convertible Unsecured Subordinated Debentures T.HOT.DB.V

Alternate Symbol(s):  AHOTF | T.HOT.UN

American Hotel Income Properties REIT LP is a trust that invests in hotel real estate properties. The company's primary business is owning Premium Branded hotels, which have franchise agreements with international hotel brands including Marriott, Hilton, and IHG. It generates revenue from the room, food, beverage, and other revenue. The other revenue is comprised of conference room rentals, parking revenues, and other incidental income.


TSX:HOT.DB.V - Post by User

Comment by ArbProfiton Dec 13, 2016 9:18am
117 Views
Post# 25590646

RE:RE:RE:RE:RE:RE:Allocation

RE:RE:RE:RE:RE:RE:Allocation
righand2 wrote:

I wouldn't short a stock paying such a high dividend. And there is always the possibility that they might raise the dividend, which would cause the share price to jump to a new "normal" level. I tend to simply hold a core position for the income, and buy traders when a financing comes out. Maybe not as aggressive, but I am an income investor for the most part. Basically, we are on the same page.


You're correct that the distribuiton, and the frequency of it, is a disincentive for shorting.  I would only do it under specific circumstances and everything lined up.  For example, if I expect an offering relatively soon, the stock has just popped, and it has just gone ex-div, then I'd have almost 8 weeks and to hold the short position and only pay one dividend.  I would also only short about a thrid of the size that I would go long.  It's not something I would recommend people do.  Like you, I really don't want to pay dividends.  With these solid, high yield positions, the wind is really at your back as a long holder.

Even if I end up flat on this one, I'll continue to participate in the offerings.  Once it seems that they may slow down the frequency of financings, I'll likely take a position to hold longer term.  There is nothing wrong with just purchasing the shares and holding them for years.  In fact, it's the best course of action for most.  





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