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No. of Recommendations: 1
I haven't been in this company very long. However I have been following it for several years. It seems to me that the stock price drop has coincided with the company making a departure from its conservative history. As realty income offered preferred stock and bonds the company was leveraging its future profits on the hope that it could invest the money to beat the finance charges.

What concerns me is that the company had authorized that $200 million buyback. I'm a little uncomfortable with any company that extends itself financially and then announces a stock buyback. That effectively tells me that in the short term the company sees that its undervalued stock will generate a greater return than its core business of acquiring and leases real estate.

I don't want to see this company end up leveraged like the other REITs. I am perfectly comfortable with the company only making acquisitions with the 5% it gets to keep from FFO. Slow but sure.

This still remains the best income stock with a balanced risk/reward that I know of.
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