Monday, December 7, 2009

Thoughts on REG and RMIX

Investors' exuberance for Regency Centers (REG) on Friday was not rewarded today - gave it all back.

I have been looking at U.S. Concrete (RMIX) as a possible short for about a month now. Today it rallied 25% on nothing more than O'bama's vague suggestions that we should spend the TARP money on make-work road projects.

RMIX bonds - with hardly any debt senior to them - trade at a 25% yield.


eh said...

Most of the REIT space traded down yesterday. Why is REG still trading so far above the proposed 30.75 offering price?

CP said...

No good reason

eh said...

Another big rally in RMIX yesterday. On huge volume. The action there, along with the Obama make work stimulus talk, makes me nervous.

CP said...

RMIX seems to be a favorite of retail investors. Take a look at the yahoo message board. They don't seem to realize there is an enormous debt burden on top of the equity.

You can't fix stupid as I like to say.