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No. of Recommendations: 5
..Anyway I'm not feeling so safe with a $22.25 cost basis. I have a 1.4% allocation so I think there's room. So, through written June puts, I'll lessen cost of current shares or be put new shares that will effect a $21.-21.25 basis either way. So, if Brad's no valuation change scenario comes to fruition, I'll be good with that (somewhat safe) and a decent total return.

I think this is a BIG if for SKT: ...about 48% undervalued if management succeeds in turnaround and restores to historical growth....


Hi Joe!

I feel your pain on SKT; down almost 18% on a $24.30 cost basis (not including dividends received the past 2 years, which does take the edge off a bit).


The "good" news is that my position size is about half yours (0.8% versus your 1.4%). However, after a lot of reading, thinking and extrapolating, I have decided to hold what I have, and DRIP the dividends. What keeps me in the SKT game is the financial conservatism (and experience) of management, and the relatively higher-than-normal-for-a-REIT safety factor in the form of a lower % payout (albeit rising). I like that they are not afraid to prune/sell lower performers and will use the proceeds to pay off debt.

Bottom line, I will continue to hold/drip unless things worsen dramatically for SKT.....and only add via cash-secured puts that are significantly "overpriced".


Cheers!
Murph
BL and MFPP Home Fool
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