The year’s losses, primarily the result of impairment charges in the first quarter, more than quadrupled the $6.8 million loss in the previous year. In the fourth quarter, the situation eased as demand started to turn around. Fourth quarter losses came to $10.1 million, compared with a $199.2 million loss in the fourth quarter of 2008.
I do pay attention to companies in my backyard, like San Francisco-based AMB. Investors looking for contrarian plays might be inclined to consider a stock like AMB as a turnaround possibility. I'm more skeptical, given the company's negative net income two years running. Their long term debt has also been increasing for three years, which IMHO is not a good sign in a recession.
I seriously think the real estate sector has further to fall.
Nota bene: Anthony J. Alfidi has no position in AMB at this time. He is long puts on IYR as a bet against the entire real estate sector.
