I just learned that Fidelity's dividend payout for December is only going to amount to 1 cent per share -- versus last year's payout of 77 cents per share.

Once again I have to call into question the purpose of owning an income security that slashes its payout to "preserve growth" in the net asset value. Obviously, some investments Fidelity made in the global real estate market aren't working out, so its time for us to get out.

Based on the fact that this information is also getting out to the general public, shares of FIREX are hitting a new low for 2007, plus there won't be another payout until next September.

Since we put FIREX on the Buy List in January 2007, we have received 98 cents in distributions, so we can cut our loss to about 7% on this position and rotate those assets elsewhere.

During this time of high volatility, we will continue to reposition our capital where the income stream is more in line with our objectives. To accomplish this we must make some changes in order to position ourselves properly for the next six to 12 months.

That said, sell shares of Fidelity International Real Estate Fund (FIREX) at market at market and watch for information soon on where to move the capital.

I'll see you Friday with the Weekly Update.

Bryan Perry

Editor The 25% Cash Machine