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Virtual Rainbow of REITs - 52-Week Lows

September 12, 2013 | About:
Sally Jones

Sally Jones

49 followers
This week real estate investment trusts or REITs have jumped to the top of the 52-week lows as the sector with the most companies. Like a virtual REIT rainbow, many kinds of REITs are up for study, including the residential, retail, hotel and diversified REITs being featured. According to the GuruFocus Value Screen for finding 52-week lows, the REIT sector has 78 companies out of 175 on a 52-week low. The low ratio is 0.45.

The four featured REIT companies are on a 52-week low and are more than 37% off a 52-week high. Check out the high yields of some of these stocks.

Industry Sector: REIT

Hatteras Financial Corporation (HTS) – Yield 15.80%

The current share price is $18.36, or 38.1% off the 52-week high of $29.68.

Down 38% over 12 months, Hatteras Financial Corporation has a market cap of $1.81 billion, and trades with a P/E of 5.70 and a P/B of 0.80.

Incorporated in 2007, Hatteras Financial Corporation is an externally-managed mortgage REIT that invests mainly in adjustable-rate and hybrid adjustable-rate single-family residential mortgage pass-through securities guaranteed or issued by a U.S. Government agency such as the Government National Mortgage Association (Ginnie Mae), or by a U.S. Government-sponsored entity such as the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac).

Guru Action: As of June 30, 2013, Steven Cohen made a new buy of 8,827 shares at an average price of $26.42 per share, losing 30.8%.

The top Guru stakeholder is Jeremy Grantham who increased his position by 37.07% in the second quarter. He currently holds 36,361 shares or 0.04% of shares outstanding.

In his seven-quarter trading history, he has averaged a loss of 32% on 59,587 shares bought at an average price of $26.76 per share. He has averaged a loss of 32% on 23,226 shares sold at an average price of $27.00 per share.

Track share pricing, revenue and net income:

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Western Asset Mortgage Capital Corp. (WMC) – Yield 23.20%

The current share price is $15.54, or 37.1% off the 52-week high of $24.72.

Down 28% over 12 months, Western Asset Mortgage Capital Corp. has a market cap of $377.8 million, and trades with a P/B of 0.90.

Organized in 2009, Western Asset Mortgage Capital Corp. is a residential real estate finance company that invests in residential mortgage assets in the U.S.

Guru Action: As of June 30, 2013, the last Guru stakeholder Jim Simons sold out his position, unloading 176,500 shares at an average price of $20.48 for a loss of 24.1%. He held for two quarters total. In the previous quarter when he bought 176,500 shares at an average price of $21.81, he lost 28.7%.

Check out the insider trading at WMC.

Track share pricing:

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Supertel Hospitality Inc. (SPPR) – Yield 0.00%

The current share price is $5.50, or 44.1% off the 52-week high of $9.84.

Down 34% over 12 months, Supertel Hospitality Inc. has a market cap of $15.9 million, and trades with a P/B of 0.50.

Incorporated in 1994, Supertel Hospitality Inc. is a self-administered REIT, and through its subsidiaries, it owns approximately 86 limited service hotels in 22 states as of Dec. 31, 2012. The company conducts its business through a traditional umbrella partnership REIT.

Guru Action: As of June 30, 2013, the only Guru stakeholder is Jim Simons who reduced his position by 87.5%. He currently holds 2,175 shares or 0.08% of shares outstanding.

He has averaged a loss of 31% on 2,263 shares bought at an average price of $8.02 per share, across a five-year history. He has averaged a loss of 33% on 88 shares sold at an average price of $8.20 per share. His trading history shows eight quarters of losses, with no gains.

Track share pricing, revenue and net income:

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Alexander’s Inc. (ALX) – Yield 4.30%

The current share price is $275.74, or 41.9% off the 52-week high of $474.75.

Down 38% over 12 months, Alexander’s Inc. has a market cap of $1.41 billion, and trades with a P/E of 2.10 and a P/B of 4.10.

Alexander's Inc. is a real estate investment trust, involved in leasing, managing, developing and redeveloping its properties. Alexander’s Inc. has six properties in the greater New York City metropolitan area, with overall management of the company and its properties performed by Vornado Realty Trust.

Guru Action: As of June 30, 2013, four Gurus hold ALX. In the same quarter, Third Avenue Management made a new buy of 5,000 shares at an average price of $305.45, taking a loss of 9.7%. The top Guru stakeholder is Ron Baron ho sold 4,065 shares at an average price of $305.45 for a loss of 9.7%. His remaining shares stand at 276,588 or 5.42% of shares outstanding.

Track share pricing, revenue and net income:

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GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

Check out the GuruFocus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.3/5 (4 votes)

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