No. of Recommendations: 6
Rob, as you noted, I was incredibly nonplussed by their sale of the U.S. assets. But I also had another very good data point on how management behaves. Investors had to twist their arm to get a buyback announcement, and then the company effectively bought none of the stock back, despite the fact that it was trading at 10-11% cap rates in a very stable market with no execution risk. Instead, they decided to invest at 8% cap rates with plenty of execution risk, though probably not any more than normal, but still. The reason the stock is up is because activists have been, ahem, actively working against management here and trying to get reps on the board. In the meantime, the dollar has only gotten stronger, so that dividend which was actually pretty close to a full four cents per share (I recall 0.036 clearly) when we owned it (at least at the start), is now much closer to three cents.

At this point, Special Ops would have been nicely up on the position in total, which of course includes dividends.

If you want a good dividend stock, we have several. There's really no reason to settle for these guys if you want a solid high yield. The guys at GPT or CTRE are much, much better, for example. II has plenty, too. And if you want a great business, we have plenty of those, too.

Jim
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