Thursday, September 20, 2007

Assignment Wk # 3

Week 3 Stock Market

COMMENT: UrbanAmerica was not affected by the stock market. It is a private real estate equity firm to become America's pre-eminent vehicle for fiscally and socially prudent investment in inner city commercial real estate. The firm made a decision not to partake in REIT – Real Estate Investment TrustS particularly in markets linked to sub-prime mortgages.

AVOID BEING BEHIND THE 8-BALL - THIS IS WHY:

NYTIMES: NovaStar Ending its Status as a REIT
September 18, 2007 *NovaStar, a troubled subprime mortgage lender that has drastically scaled back its business, said yesterday that it was giving up its status as a real estate investment trust because it could not afford the $157 million dividend it would have to pay to maintain the status.The company said the move would leave it with a substantial tax bill for 2006.

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