REAL ESTATE STOCKS - www.ashudutt.com

REAL ESTATE STOCKS - A REACTION NOT IN PROPORTION - The fall in real estate stocks may have created several value buying opportunities. The speed of the fall indicates "forced" selling (for example a promoter may have pledged shares and since he can't pay up may see his stock drop like nine pins as the creditor sells the stock at any price). Usually, these things stop at some point as the creditor and the promoter come to some agreement. While these are not trading stocks, any holding period of 12 months or more should produce a decent value pick here
In this selling spree, one has overlooked the fact that real estate companies are already treated like step children by banks and there is hardly any lending. And in the next 3-4 years, as the Industry matures, the potential for REITs and other derivative instruments in Real estate remains intact
Note: There may be some more fall though I cannot see more than 10-15% more from here
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