Monday, January 21, 2008
Update on Viigo
The latest version on Viigo made some great improvements. I'm also using it as my only feed sourse. The only thing missing, folders...
Saturday, January 19, 2008
REIT sector undervalued: Canaccord Adams
Canaccord Adams real estate analyst Shant Poladian has added his voice to the chorus of Bay St. commentators who maintain the real estate investment trust sector is undervalued.
"Looking for 20% plus total returns once [the] global credit market turmoil subsides," wrote Mr. Poladian in a note investors.
"Canadian property fundamentals are in the best shape we've ever seen and most of our stocks remain poised for healthy organic growth in 2008 and 2009. In our view the REIT sell-off is overdone."
He says recent stock prices are pricing in too large a correction for the drop in underlying property values based on recent real estate transactions. He believes REITs are trading at a 13% discount to net asset value, even after 25 basis point adjustment is made for capitalization rates, the implied rate of return on a property.
"We believe the REIT sector will eventually revert to trading at a modest 5% premium to net asset value, in line with its long-term historic average, which equates to a sector total return north of 20%," said Mr. Poladian, predicting 15% capital appreciation and 8% yield. In fact, he can see returns approaching 30%.
"We see a wall of capital sitting on the sidelines from private equity funds waiting in the wings, large institutional investors deploying capital following raising their real estate allocations, and individual investors eventually redeploying funds that are currently parked in money market investments," said Mr. Poladian.
Despite his bullish stand, the analysts says the turmoil in global credit markets warrants means investors should be defensive and focus on REITs with strong balance sheets, healthy organic growth profiles, strong performance track records and look to medium to larger cap companies.
Garry Marr
"Looking for 20% plus total returns once [the] global credit market turmoil subsides," wrote Mr. Poladian in a note investors.
"Canadian property fundamentals are in the best shape we've ever seen and most of our stocks remain poised for healthy organic growth in 2008 and 2009. In our view the REIT sell-off is overdone."
He says recent stock prices are pricing in too large a correction for the drop in underlying property values based on recent real estate transactions. He believes REITs are trading at a 13% discount to net asset value, even after 25 basis point adjustment is made for capitalization rates, the implied rate of return on a property.
"We believe the REIT sector will eventually revert to trading at a modest 5% premium to net asset value, in line with its long-term historic average, which equates to a sector total return north of 20%," said Mr. Poladian, predicting 15% capital appreciation and 8% yield. In fact, he can see returns approaching 30%.
"We see a wall of capital sitting on the sidelines from private equity funds waiting in the wings, large institutional investors deploying capital following raising their real estate allocations, and individual investors eventually redeploying funds that are currently parked in money market investments," said Mr. Poladian.
Despite his bullish stand, the analysts says the turmoil in global credit markets warrants means investors should be defensive and focus on REITs with strong balance sheets, healthy organic growth profiles, strong performance track records and look to medium to larger cap companies.
Garry Marr
Wednesday, January 16, 2008
Mortgage applications up 28%
Read full story for latest details but that's good news for the market.
http://rss.cnn.com/~r/rss/money_topstories/~3/217634517/index.htm
The Fed will calm a stormy market
The stock market is in turmoil. Banks keep announcing big losses, and economists are raising the odds for a recession. Does that mean you need to be doing a dozen things right now to protect your investments?
http://rss.cnn.com/~r/rss/money_topstories/~3/217718940/index.htm
Thursday, January 3, 2008
Fed hints at more rate cuts
Ben Bernanke and other Fed members say 'substantial easing' may be needed. But markets, still concerned about recession, plunge.
http://money.cnn.com/2008/01/02/news/economy/fed_minutes_analysis/index.htm?section=money_topstories
http://money.cnn.com/2008/01/02/news/economy/fed_minutes_analysis/index.htm?section=money_topstories
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