imirza
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- Jul 29, 2007
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Edge - The oversold sectors like financials and the REITS should experience a formidable bounce from here onwards. Patience is the key though. I expect this bounce like the others will not last. If you are selling naked SRS puts, try to get your cost average to around $50. I think SRS will see $100+ sometime this year. It did hit a peak of $275 in November. REITS are currently seen as dividend plays. How long before they are forced to cut dividends due to declining cash flow as vacancies increase ? You know its going to happen. Its a matter of patience. Ultimately fundamentals will win and the fundamentals of commercial RE stink. Look at the retailers going bust - Circuit City, Linens N Things, Mervyns and many more to come. Its going to hurt the REITs bad.
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