Editor's note: "Bricks and Mortar" is a series of columns written by real estate reporter Nicholas Yulico meant to help TheStreet.com readers generate real estate and gaming-related stock ideas.
Trump Entertainment ( TRMP) shares hit an all-time low Monday, but investors should be wary of thinking the casino operator is now a value play. Today, I'll provide an update on why I think Trump remains a stock to avoid, while also detailing the ongoing problems at homebuilder Ryland ( RYL). I flagged both stocks as overvalued in late January. First, let's take a look at Trump, whose shares plunged more than 16% Monday after the company said it
Ryland Knocked DownOn Monday, Citigroup analyst Stephen Kim, the biggest homebuilder bull among sell-side analysts, finally threw in the towel and downgraded numerous names in the sector to hold from buy. One of those stocks was Ryland, whose stock has now fallen 33% since I first noted its troubles in January. At some point, Ryland and other homebuilders will become a buy. But not now. The U.S. housing market is plagued by high inventory levels and falling home prices. As I wrote in a
Penn National Taken OutSince my last update, Penn National agreed to a
|Bricks and Mortar Portfolio |
A Look at How Nicholas Yulico's Picks Have Performed
|Rating Date||Price at Rating||Rating||Current Price*||Return**|
|Brookfield Properties (BPO)||1/23/2007||$28.67||Own||$24.60||-14.2%|
|Global Real Estate ETF (RWX)||1/23/2007||$64||Own||$65.85||2.9%|
|Penn National (PENN)||2/6/2007||$45.56||Own||$60.14||32%|
|Melco PBL (MPEL)||3/12/2007||$15.46||Own||$12.43||-19.6%|
|Home Solutions of America (HSOA)||4/24/2007||$4.98||Flag||$6.18||-24.1%|
|Source: *(7/2/07 closing price) |
**For "flagged" stocks, a drop in price is tracked as a positive for the portfolio, and a rise in price is a negative.