John,
I saw a 1,500,000 share block go off at 1:59 pm at 33-3/8. The previous trade was 33-1/2. I imagine there was a 2nd trade to match this. If a fund bought the 1,500,000 shares and is done buying, they may buy another 50,000 shares to drive the price up. With HIW's growth rate of 18% and maybe 10% maintainable, I imagine it will trade at a 15 FFO mutiple on it's high. If so, $39-40 is the upper range that it may trade up to soon. Until then the $36 range is the resistance level.
For money flow followers, GTA and UDR seem to have large accumulations going on.
Today was a strong recovery day for many of the beaten up REIT's. I have a call in to the execs at URB as it looks extremely cheap with a FFO multiple down to 11 and a 14% FFO growth rate recently. If a supposed retail slowdown is not occuring, then I want to accumulate URB. GRT, SKT, EGP & HRE are also ones with low FFO multiples of 11 or less and double digit FFO growth. (RPT also, with a 9% FFO growth in last quarter). RPT and HRE are very thinly traded, so be sure to put in limit orders and be able to commit the money long term, since one seller could hold the stock down for quite a while. Still, the fundamentals dictate a higher FFO multiple. SIZ is down to an 8 FFO multiple with a 6% FFO growth rate in the last quarter and just declared the dividend due in less than 2 weeks. Should likely get 1/2 point or more before it goes ex-dividend.
If anyone is still in ELXS, I am upping my fair market price to $16-20 now since they came in with a dynamite quarter. Revenues grew 7% from the previous quarter and core earnings came in at .35 on pace to earn over $1.15 core, up from $.91 core last year. I imagine this will trade between 10-15 for the next few months, but the management has grown earnings very consistently for the last 5 years.
Richard |
