ROICW. Geared REIT play

By bkkben, December 14, 2012

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

Auch – managed to pick up some ROICW for $1.11, and so far sitting on an 18% loss (at $0.9 currently). I am well aware that this is a geared investment with a potential total loss – but would like to hear any thoughts/insights about this baby Travis or others might have. Cheers!

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2 Comments on " ROICW. Geared REIT play"


December 16, 2012 6:04 pm

Me too. I was lucky enough to get ROICW for $0.96 and it’s been down in the eighties (cent-wise) and back to $0.90. I guess we should be patient and prayerful. Of course, I didn’t expect it to be other than flighty but I was hoping for occasional bumps into the $1.20’s when the market kept going up. Anyone got any insights besides being patient and stocking dramamine?

Travis Johnson, Stock Gumshoe
December 16, 2012 8:55 pm
It’s a pretty tight correlation to the underlying stock, which itself is closely tied to sentiment for retail REITs in general. I think growing REITs benefit if we lose the div tax preference, but mildly so, the volatility is just because we’re close to the strike price. I expect to hold through the next six Months or so, but there is absolutely a lot of risk — particularly if the market gets really ugly and the underlying stock drops 20 percent. I consider the stock a pretty solid one, under leveraged and tied to necessity retail like grocery stores and… Read more »