RE:Fair valueThere were LOTs of investors who put money into this at "fair value" of $22 only 8 or 9 months ago.. They thought it was a good investment. Not much has changed in the company except for the share price.. There has been a lot of fear which has pushed the stock down, all that reitredceo says is true. nav will increase and the shares will need to play catchup.. $14 is a great price. If it went to $14 a year ago, everyone would have piled in.. I bought more last week. This reit is my biggest holding of all my Reits. I believe it gets back over $20 before most people realize.. They also have room to put the dividend back over $1 in the next 12 to 18 months.
Reits cannot stay below NAV forever, they become takeout targets... There are some deep pockets out there that can buy HR for cash.............. Why would a developer build more properties when they could just buy one that already has tons of developments completed and being build for 35% off net asset value? Its better to just buy them out and you now have up an up and running multi billion dollar operation and you didnt have to spend years building it...
that is why I have bought out 2 of my competitors. For me to start new operations in their area, market my products etc costs a bloody fortune just to end up with 1/2 the sales I would have if I just bought them out... and trust me, I had to pay over Net asset value to get them.. did it pay off? Yup, in about 12 months I was doing double the business as if I started from scratch... Now a few years has gone by and I know I made the right move.
Scrivs187 wrote: Morning all,
Ive seen a few familiar names from this board that also post on Rei' s board (seems a bit more civil here) so just asking for some friendly opinions.
I am a new and slow builder of my portfolio and was just curous to where you think a fair SP to buy into is in your opinion. Not what you bought at our your average but if this 14 level is a good entry point?.
Itll be the new year as the tfsa space will open so just doing a bit of pre digging before the new year is upon us
Appreciate it