Gerry Sullivan

Mack-Cali Late to the (Follow-On) Party

REITs continue to go up and everyone seems to be mad about it.
They must be short.

People who bet on sports know that the most important thing is
to be on "the right side of the fix." The right side of this fix is to
continue to buy the REIT offerings until they no longer work.

Remember VNO a couple of weeks ago at $43? It's at $52 now.
LaSalle Hotels LHO up 40% in less than 2 weeks. Duke Realty DRE?
Hope you are still not short.

Open Letter to SEC: Wall Street's REIT Bait-and-Switch

Two more good deals last night: LHO and HST. Both popped.
Both are up 15%. Makes 8 in a row for Merrill.
What's not to like. This is the new game. REITs need to raise
capital. Hedge funds are underperforming and grab the deals. Lenders want to be repaid.
Seriously, what's not to like. You can complain about it, but it's like complaining about professional wrestling. It's fixed. So what.
We are here to make money. While CNBC is talking about MSFT and YHOO, this is the real Fast Money.

Open Letter to SEC: Wall Street's REIT Bait-and-Switch

These may be bad companies but the stock offerings have been good.
Add VNO@43 (offered this week), and CIM@3 (235,000,000 shares last week) to the list and all 6 Merrill Lynch led REIT offerings are up.
Buy them, sell them. Make money.
If you want to invest, buy P&G and Exxon Mobil.

Open Letter to SEC: Wall Street's REIT Bait-and-Switch

There is an opportunity here for traders to buy the new shares on the
offering and flip them. All 4 of the stocks mentioned are trading above
the offering price.