Last week proved to be a busy one for the Bricks and Mortar portfolio, with earnings reports from Penn National Gaming ( PENN), Brookfield Properties ( BPO) and Trump Entertainment ( TRMP). The end of the week also saw a sharp sector-wide selloff among REITs, homebuilders and casino operators. The downtick was a natural correction, since each of these sectors has been off to a hot start this year. I still believe that adding quality names among REITs and gaming companies remains a solid investment strategy. Meanwhile, the
Penn National (Own)Much of Penn National's
Brookfield Properties (Own)With office stocks, it's possible to be both cautious and optimistic. The past month has seen a heated bidding war for Equity Office Properties ( EOP), which ended last week. Mike Kirby, the director of research with Green Street Advisors, told me last week that even if valuations are getting stretched, now is
Trump Entertainment (Flag)Trump's results last week
Ryland (Flag)There was no news from my other flagged stock, Ryland ( RYL), last week. But there were a lot of data related to the housing sector, with Toll Brothers giving disappointing orders number and guidance. As well, subprime lender New Century practically blew up, losing 40% in two days. On Friday, St. Louis Federal Reserve President William Poole said the housing market still isn't out of the woods, adding that "at a minimum we can say that we do not have evidence as yet that home prices have stabilized." Homebuilder stocks could continue to sell off this week on earnings news from KB Home ( KBH) and housing permit data from the government on Friday.
|Bricks and Mortar Portfolio|
|rating date||price at rating||rating||current price*||return|
|Global R.E. ETF||1/23/2007||$64.00||Own||66.9||4.5%|
|*( market close 2/9/07) |
**While the stock is down since the initial rating, it is tracked as a positive return for the portfolio, since the stock was "flagged."