Realty, Inc.me Corp (O)

Price will drop, and maybe dividends too. At least I hope so as I dumped all I had!! Maybe get back in at 18.00

Ponzi, Madoff and « Realty Income (‘’O’’) »

This is one of the more overvalued stocks in the market.

Equity / Share is going down because of insanely high dividends paid with the money brought by frequent capital increases (Ponzi)

Number of shares (in mlns)
1999 : 53
2001 : 58
2003 : 71
2005 : 80
2007 : 100
2009 : 104

Dividends / Net Income
2004 : 108,0%
2005 : 121,0%
2006 : 130,4%
2007 : 135,7%
2008 : 157,7%

Debt is going up. :

Interest / Net Income :
2004 : 39,7%,
2005 : 46,3%,
2006 : 51,9%,
2007 ; 51,2%,
2008 : 78,1%

And valuation is going up,and up until the crash (2009, 2010, 2011 ?)

P/E:
1999 : 7,0
2001 : 8,8
2003 : 11,9
2005 : 16,9
2007 : 18,4
2009 : 22,4

Bill Ackman

Poor player in commercial real estate that pays out 100% of cash to dividend. When commercial real estate market falls, I wouldn't want to be owning this.

Cash dividend income will be a big driver.

Retail REIT that attracts small investors with dividends during a low rate environment. It's properties are rented to what management calls "less than investment grade" tenants. They call that JUNK in the bond market. When they eventually cut the dividend, the punters who bought it for the dividend will be in a panic to see who can get out the fastest.

Violated the 50MA will it hold the 100?

Short-term may be OK, but I suspect that long-term commercial real estate will get devalued, which will result in lower revenue. This would deflate the stock price back to near its 52 low.

Bill Ackman publicly announced this as short idea at 26 dollars per share.

not quite there yet but I don't want to forget to do it.
http://www.safehaven.com/article-14674.htm

i like nice dividend players, and this is a good one. but the outlook for commercial real estate doesn't look good. since realty inc has been on a nice run recently, i think it's due to correct back down. and if that commercial real estate shoe does drop like some are saying, it could be a big drop down for realty inc.

First got it as a recommended stock from a newsletter. I bought it for the monthly dividends--it's nickname is the monthly dividend company. Bought it at $24.60, it went up to about $28, and held steady between $25 and $28. When the financial crisis hit, it dropped, like everything else, down to under $16, but kept paying dividends. I looked at it--strong fundamentals, about $200 million in cash on hand, no debts, sound business plan, a good company--and decided to hold on and see if it didn't climb back up, and it has, all the way to $26.63 today. I'd like to sell covered calls on it and use it to generate a steady cashflow.

Very high dividend rate in this era of v. low CD interest rates.

I picked this stock because I saw "O" by Cirque Du Soleil... reason enough for me

damned good management.

They are going to be fine. Commerical property perils will affect them, but that's already in the price. No significant debt service issues or maturities for that matter for some time. Cash Flow is strong. Dividend is relatively secure and attractive.

High Short Interest with Low Sales

Don't like REITs in general. Think the country is over-built right now both residentially and commercially, but I like this big O more than most bar-hopping cougars like theirs.

The business model is simple, buying convenience stores, gas stations, tire changers, chain restaurants, theaters, and daycare centers, then leasing the properties back to owners of these recession-proof, basic service businesses on long-term leases with inflation bumps priced into the rent payments. They show a 30% debt-to-equity ratio, no mortgages, with no debt due until March 2013. Did I mention the 8% dividend?

for income

MANAGEMENT SEEMS VERY INTELLIGENT ESPECIALLY AT NAVIGATING THROUGH TOUGH TIMES.HAS PAID GREAT DIVIDENDS CONSITENTLY.I LOVE IT.SHOULD BE RATED HIGHER