Wednesday, November 19, 2008

A GM no go broke play and Obama stimulus check one as well

ANL is going broke, so this is definitely high risk, but SUI is a mobile home park operator with operations throughout the midwest.

People need homes and mobile homes have provided that, with minimal debt involved; though as a REIT, SUI needed to expand through debt which is why they have a high debt load, but unlike other businesses this a very cash flow rich type of enterprise. If they can weather it the next few months then I think these dividend checks will be safe (over 12% currently).

If the automakers can keep the labor force the way it is or god forbid actually start hiring again, especially in the midwest, then I think this is a winner.

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