Sun Communities, Inc. (NYSE:SUI)
A self-administered and self-managed real estate investment trust. The Company owns, operates, develops and finances manufactured housing communities concentrated in the midwestern and southeastern United States.
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Fidelity total return by P/S. 1 of 4.
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crazy valuation at 60 times book value and 900 times earnings. REITs should never be at much of a premium to book value.
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Baby boomers retiring to the sunbelt will need affordable housing because they don't have the nest egg they thought they would.
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Balance sheet is a mess. How they have continued to pay the dividend since the credit crisis is beyond me. Neg income, low ROI, and a housing market that is in shambles.
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SUI's dividend appears unsustainable. If it's cut it will be a significant downside catalyst.
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High debt, negative equity and no income in a flooded housing market.
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It is real easy to show your sales up when, you are housing misplaced people that lost thier homes to foreclosure, little or no down payments and poor credit. It is not difficult to sell Ice near the equador, and it is easy to show profit when are selling homes to the homeless. Sui has thier own subsidary mortgaging these in house sales, how else do you think they are selling their manufactured homes when no one else can sell site buit homes with the property for half the cost?
<br /><br />Just ask( Home town America) in same business, the units they made available for these families who have not made thier payments and left the units a shambles. Hometown are liquidating thier parks in Florida and other places.
<br /><br />It is just a matter of time untill you keep flipping these units on paper untill the actual reality catches up and the truth is uncovered.
<br /><br />Sui is acting the way our Banking system did between 2000 and 2008 and we know what happened to them.
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I wound'nt call this stock a 10 when 33% of it's communities are in the destraught state of Mich. as Chrysler and GM file bank Rup. and continue to lay off workers, The State is givening away residential Property why should people own a mobile home and rent lot?. In addition 54 % of properties owned buy SUI are in state effected auto industry area. Mich/Ohio/Indiana. and another 14% is in florida where average Res.Prop. is selling for less than half of what Mobile Homes are selling for where you own your lot/Property.
Traders and investors should know more about businesses their buying.
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Undervalued trailer park trash.
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Dividend coverage appears to be improving. Price seems far below net asset value.
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Check out their rv parks in florida. No capital improvements. People will start moving to other parks. Poor commucations with owners It's hard to improve profit when income goes down.
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A manufactured housing REIT!
When the market prices an equity at a 14% dividend yield, the market is telling you that it does that think that dividend is sustainable. And the manufactuered housing industry has been a bad business to be in since 2000, when much financing for manufactuered housing left the market place.
However, now there are real signs of stabilization, or even a turnaround. I think there is a bit if a counter cycliality to this business that makes it counter cyclial to the broader housing markets and the broader economic environment: 1. manufactuered housing is for poor people so there is a trade down effect there (just like how walmart does better in a recession) 2. when financing is less readily available for a regular house, some will trade down to manufactured housing.
So in short I think that dividend is sustainable. There might even be upside!
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lying dividends screen
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looking for dividends
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"High-Risk Dividend Stocks"
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