Some may have a hard time believing that I’m starting to see improvement in the financials. “What are you smokin’?”, or “you’re wrong”, “you’re early”, etc., etc…
Things don’t “feel” right. Yeah, I know…it might not feel right, but since when do your or my feelings have anything to do with the way the market operates?
Here’s another area to start exploring: REITs.
Aside from paying you decent dividend yields, they’ve also been showing some improvement in demand and RS.
I like the idea of [[ACC]], $28.98, which develops, owns and manages off-campus student housing at schools like Florida State, Texas A&M, Oklahoma, U Penn, Colorado, San Diego State and Michigan, to name a few. However, I would wait to buy it on a pullback to $26, as the company has been recently downgraded from BUY to HOLD by one analyst on the street due to market price valuation issues.
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There’s also [[BAM]], $32.13, which owns interests in 106 properties, totaling 73 million ft2 in the downtown core areas of NYC, Washington DC, LA, Houston, Calgary and Ottawa. They also own over 1 million acres of timberland in the US, Canada and Brazil. In addition, they are focusing on hydroelectric power generation and co-generation plants, so it’s also an infrastructure play.
A triangle chart pattern is forming and given the improving strength of the sector, it has the potential to breakout to the upside. I already own shares @ $31.58 with a stop at $28. Fundamental price target is $40, with a bullish price objective of $60, based on the PnF charts, so my reward to risk ratio is better than 2:1.
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Finally, check out [[BXP]], $93.29, which develops, owns and manages prime property in Midtown Manhattan, Washington DC, San Francisco and Princeton, NJ. I haven’t bought it, but would consider doing so on a pullback to under $94. My only concern with this one would be how rents are holding up in Manhattan, given slower growth, increase in sublets and additional office space becoming available.
The 9% divi helps a little, though.
These are just a few of the names I find interesting. One might also simply look at buying [[ICF]], $74.64
Right now is a good time to be checking out these battered areas for bargains. We are in a lower risk environment for stocks right now, contrary to what all the fear-mongers are selling the public. Opportunity knocks lightly, it doesn’t hammer you over the head.
Disclaimer: This information is not intended to be used as the primary basis of investment decisions. Because of individual investors requirements, it should not be construed as advice designed to meet the particular investment needs of any investor. Consult your financial prior to taking any actions. The information and opinions contained here are those of the author and are not necessarily the same as those of iBankCoin, its principals or its affiliates. Trade at your own risk
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