RE:RE:RE:RE:RE:Stabilized SPI'd agree as far as the market is concerned, although in part it might become one of those self-fulfilling prophecies. Which is why September is often a rough month, even though logically there should be no reason why this is the case over a period of time.
I think we are still in that phase were stock-picking is key rather than holding broad-based ETFs, the exception to that possibly being covered call ETFs which I have been adding to.
I think you have to look at each stock on a total risk/reward basis and not simply the downside risk. For SRV, I am confident that the level of distribution will put a floor under the stock at the very least. When we stop catching up on the deferred royalties in the middle of next year, the million dollar question will be whether 9 cents a month can be maintained on current royalties alone. If it can, then we should be looking at $13.50 a unit minimum.
We know that even with all the restrictions, SIR was able to generate 4 cents a month, so we surely cannot go lower than that. If we were to split the difference at 6.5 cents a month, using an 8% yield we would be looking at $9.75.
Either way we are paid very well to wait. There will be ups and downs from now until then, magnified by the illiquidity of the stock, but for me the risk/reward is compelling. That's why I added 2,000 yesterday - I managed to get 1000 at 9.36 and 1000 at 9.66.
wildrunner11 wrote: Robopinion, I'm quite content. The market is starting to worry me feel there is more down side risk then up.