So far, Tuesday is living up to it’s billing. After struggling through numerous corporate earnings conference calls as well as Mr Geithner’s speech, traders bought the market. Now, lets see if the afternoon gives us follow-through.
I have traded a little GE, PALM and SRS, the short REIT ETF. The latter did not go well as this quixotic market fooled me and I closed it out within minutes. Have kept my GE for the time being and sold PALM too soon.
Am looking at more yield ideas. Omega Healthcare Investors (OHI) own nursing homes and assisted living centers. I figure they are not going to be hurting for customers. REITs use “funds from operations (FFO)” as their earnings benchmark. It is similar to “cash flow”. Analysts feel OHI can generate 3%-7% FFO annual growth. Last year’s FFO was $1.45 and at the mid-point of its growth, 5%, they are easily covering the $1.20 annual dividend. Yield is currently 8.6%.
