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Dane Bowler  

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  • REISA Conference Reveals Valuable Information About Non-Traded REITs [View article]
    Hawmps,

    Thank you and good luck with your ARCP. It seems you have made a nice profit in the recent run-up and you are wise to be watching it like a hawk. ARCP still has potential, but there is a fair amount of uncertainty surrounding it.
    Apr 19, 2013. 03:34 PM | 1 Like Like |Link to Comment
  • Beware The False 8.09% Dividend And Expensive Acreage Of Gladstone Land [View article]
    farmer,

    I agree with you that land can have different values pending its location. The $10,000 you mention seems realistic, or even 20,000 per acre, but investors are paying more than $50,000 per acre with LAND.
    Apr 19, 2013. 01:51 PM | Likes Like |Link to Comment
  • Beware The False 8.09% Dividend And Expensive Acreage Of Gladstone Land [View article]
    Yes, they do add to the bottom line, but the bottom line is terrible. $0.39 of FFO compared to its price is just awful.
    Apr 19, 2013. 01:20 PM | Likes Like |Link to Comment
  • Beware The False 8.09% Dividend And Expensive Acreage Of Gladstone Land [View article]
    Well said Bruce
    Apr 19, 2013. 12:55 PM | Likes Like |Link to Comment
  • Beware The False 8.09% Dividend And Expensive Acreage Of Gladstone Land [View article]
    wkfield,

    They mostly grow various fruits and berries. It is possible some of the land has unique fertility, but it was recently appraised. With the appraised value so far below its market cap, its just not a good value for investors.

    Thanks for reading and commenting
    Apr 18, 2013. 11:28 PM | Likes Like |Link to Comment
  • Beware The False 8.09% Dividend And Expensive Acreage Of Gladstone Land [View article]
    I was not talking about per acre value. I was referring to per acre cost to the investor
    Apr 18, 2013. 11:27 PM | Likes Like |Link to Comment
  • Beware The False 8.09% Dividend And Expensive Acreage Of Gladstone Land [View article]
    ag_guy

    Subtracting net cash would definitely be involved in calculations aimed at valuing the company. However, I decided to leave it out of the calculation as I was referring to these companies strictly as a land play. In other words, the free cash would affect the companies overall value, but has no bearing on them as a land play.

    It is a valid concern, and I should have mentioned my reasoning in the article. Thanks for commenting
    Apr 18, 2013. 08:39 PM | Likes Like |Link to Comment
  • Beware The False 8.09% Dividend And Expensive Acreage Of Gladstone Land [View article]
    traderpace,

    I agree with you that David Gladstone is a superb business man. I have long been an owner of GOOD.

    You mentioned that "As the profits go up the dividend should follow, as seen in the dividend jump from .04 to .12."

    The dividend did NOT go up and it is NOT supported at that level. the extra 8 cents per period is required for compliance with its listing as a REIT. It is temporary and has bee announced to end by the end of 2013.
    Apr 18, 2013. 08:34 PM | Likes Like |Link to Comment
  • Beware The False 8.09% Dividend And Expensive Acreage Of Gladstone Land [View article]
    I agree that is not the company's fault for the poorly displayed yield. They issued a press release detailing the precise nature of their dividend. The blame lies on the reporting mechanism of colloquial sites like yahoo finance.
    Apr 18, 2013. 08:27 PM | Likes Like |Link to Comment
  • Beware The False 8.09% Dividend And Expensive Acreage Of Gladstone Land [View article]
    bhh19,

    The cost basis you refer to is what was initially paid for them. Off the top of my head, it was roughly around $40mm. Investors pay more than 3 times that much making the rental return to investors under 3%. I am a big fan of triple net REITs, but most of them get cap-rates in the 7-10% range. 3% is overpriced. Gladstone is a smart man and when he bought the land for $40mm that was a great deal, but it is NOT a good deal for investors to buy the land for more than 3 times that price.
    Apr 18, 2013. 08:26 PM | 1 Like Like |Link to Comment
  • Beware The False 8.09% Dividend And Expensive Acreage Of Gladstone Land [View article]
    Ligbfec,

    first off, timberland is NOT susceptable to economic cycles. log prices are, but the companies simply don't cut down the trees when prices are too low. By deferring harvesting, these companies continue to grow their asset base (trees grow bigger) and sell when the time is right. Perhaps cashflows vary, but the economic growth is constant. If you are okay with a 3% yield that is your call, but the stock is drastically overpriced relative to earnings.

    There are plenty of better sources of yield where you can get a higher dividend without loss of principal
    Apr 18, 2013. 08:20 PM | Likes Like |Link to Comment
  • Whole Foods: The Short Thesis [View article]
    NGVC has announced potential to expand to 1100 stores. Compared to Whole Foods' 345, this is very serious competition that will limit WFM's ability to expand.

    Walmart, Kroger, Safeway, Trader Joe's and countless others each provide partial competition. Perhaps none are a direct competitor, but when summed together it is a very material threat.
    Apr 12, 2013. 03:13 PM | 1 Like Like |Link to Comment
  • Whole Foods: The Short Thesis [View article]
    WD216,

    Well, the fair price depends on how much you think it will grow. It is difficult to say, but your $50-60 estimate is about right by my judgement.
    Apr 12, 2013. 02:05 PM | Likes Like |Link to Comment
  • Whole Foods: The Short Thesis [View article]
    Thank you Chris
    Apr 12, 2013. 02:03 PM | Likes Like |Link to Comment
  • Investing In Industrial REITs Part 3: Lexington Realty Trust [View article]
    mgordon,

    I agree that the run-up is disappointing for someone trying to get in, but I think it still has room to run. Relative to the rest of REITs and the market as a whole, it is still quite cheap.
    Apr 12, 2013. 09:51 AM | Likes Like |Link to Comment
COMMENTS STATS
631 Comments
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