REIT in a taxable account

[EricL]

(12-03-2013, 10:05 AM)fiveoh Wrote: Yield is over 7% on DLR now! I've lost over 30% in under a year... text book falling knife. Ouch. Glad I didn't buy more when I was considering it.

I doubled down a couple of weeks ago. Liking the 7%+ yield on my reinvesting dividends!

[hendi_alex]

DLR was being shorted to the tune of over 25% of float as recently as Oct 31 according to Yahoo stats. Do you really believe that such a large percentage bet by the shorts has been done without the smartest of them, who also have access to the best information, having a firm grasp on the difficulties that DLR faces with its business model? Does anyone on this board have in depth knowledge that solidly demonstrates that the shorts are wrong? Most every time that I've bet against a large short interest, it was a losing bet. IMO the institutional shorts tend to be smarter, they dig deeper, and have much greater access to information than the rest of us have. If placing a bet on DLR, IMO it would be best to side with the shorts. I tend not to short stocks, so for me, that means to avoid the issue as far too risky for my investing dollars. Better to settle for a 4%-5% yielding issue that has some growth potential, and which also has very little interest shown on the short side. My guess is that DLR represents a classic value trap and yield chase, where the share price will continue to fall, and the dividend will eventually be cut.