In closing, truthfulness is the bedrock of all social and economic arrangements. I believe in Digital Realty and although the accounting changes were poorly timed, I am standing behind the company. The fundamentals remain sound (although I am concerned with the rising costs of capital) and the dividend appears safe. Remember, I own a diversified REIT portfolio and my allocation with Digital Realty is around 5% -- diversification is a must. After discussing the latest results with Digital management (later today), I may consider buying into the weakness.
Digital is trading at $46.70 -- down almost 15% in two days. There is no question that two consecutive quarterly earnings hiccups is upsetting and I believe that the only way to win over investors is to provide consistent and honest earnings guidance. I'm giving Digital Realty another chance to prove itself.
At the time of publication, Brad Thomas was long DLR.Follow @swan_investor This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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