No. of Recommendations: 12
CM asked: <What really caught my eye is the stock is now trading below 50DMA, and today would mark the 3rd day in row if it finishes below 12.72.

CM, I have zero company specific knowledge about ROIC. I know that the elephant in the room is how they handle the warrants that are outstanding.

Based strictly on price, I see nothing to worry about on ROIC. I used the same data I presented yesterday on MREITS. It was the price change from the day before QE to infinity (9/12/12) was announced through yesterday's (10/24/12) close.

Here are the pertinent numbers for ROIC

Equity REIT Index (VNQ) = -2.56%
Median Equity REIT = -2.58%
ROIC = +0.79%

ROIC is outperforming since QE was announced. If there was something specific to ROIC, I would have expected to see it substantially underperforming other equity REIT’s.

I would say that as equity REITS go, so will ROIC go. Of course there is the chance that they will announce something major regarding the warrants on the 11/1/12 Q3 Conference call. If they do that, obviously it might have a dramatic effect up or down.


Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.