The baby, the bath water and the bath tub are all being tossed out the door. I would love to buy–but I can’t!
There is no use being a hero until we can see action relative to stopping the spread of Covid 19. I note that Wisconsin just went ‘shelter in place’ and I am certain within 72 hours Minnesota will do the same.
Forget about the Fed action and the clowns on capital hill. The Fed is keeping the financial system from imploding, but this does zip on arresting the virus spread and the government really seems more inept than I already thought they were.
I have been down this road with the Federal Government back during the Gulf Wars. 1 of the businesses I managed for Pillsbury was the production of MRE’s (meals ready to eat) for military use. 6-12 months or so before the war started the department of defense asked us to ramp up production–of course we had no capacity for increasing–so they threw millions of dollars at us for a new production line. Being specialized production equipment it took months and months to install the line. By the time we had the line installed they no longer needed it and they simply gave us the equipment. Later we donated the equipment to Rutgers University Nabisco Food Research Center.
So I expect by the time the Fed government is all ramped up we won’t need them anymore–can’t count on the Federal government for much.
Anyway I still watch the spreadsheets for bargains–just not taking the bait yet.
Here is the Lodging REIT preferred spreadsheet--huge bargains, but dividends are being suspended–they are cumulative. Thus far Hersha Hospitality (HT) and Sotherly (SOHO) have suspended common and preferred dividends. Pebblebrook (PEB) has reduced their common dividend to 1 cent and are monitoring preferred dividends going forward. RLJ Lodging has gone to 1 cent on the common. Is HT preferred worth the $3/share price right now? Don’t know but the risk reward is pretty juicy–we’ll see.