Zacks Equity Research, Chicago, has designated Affordable Residential Communities Inc. its "Bear of the Day" -- a stock expected to underperform the markets over the next three to six months -- for Dec. 5.Affordable Residential, a real estate investment trust, is a Denver-based owner and operator of manufactured-home communities. Zacks said the REIT exceeded Zacks' funds-from-operations estimates for the third quarter, but that the estimates had been "significantly lowered" because of disappointing results. Furthermore, the company pays no dividend, has high debt levels, and "is in an industry with little pricing power," Zacks said. Occupancy remains low, and the company is "valued well above better-positioned peers," according to the equity research firm. "We don't see much upside in the next few quarters, and ARC will continue to struggle throughout 2007," Zacks said. Zacks can be found online at http://www.zacks.com.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry