I've been watching this timber REIT and it's had a nice pullback to a very big support level. Technically the CCI suggests it could bounce strongly from here, while a stop is relatively close by.
I managed to sell some at higher levels and am getting interested in buying again.
Fundamentally, it's a long term candidate because
- We are in a macro environment where REITs are favored (low growth, stagflation, defensives).
- Lumber is in a strong uptrend, albeit currently at resistance. Kind of surprising to be honest, considering the virus situation and collapsing commodity prices in Copper, Steel, etc.
- I'm hearing about a trend in wooden buildings becoming more accepted and popular (plyscrapers).
This support level could fail and we could be looking at a big bear flag on the weekly chart. That said, it owns land and pays 4.75% dividend so I would think it becomes even more of a bargain at lower levels.
I managed to sell some at higher levels and am getting interested in buying again.
Fundamentally, it's a long term candidate because
- We are in a macro environment where REITs are favored (low growth, stagflation, defensives).
- Lumber is in a strong uptrend, albeit currently at resistance. Kind of surprising to be honest, considering the virus situation and collapsing commodity prices in Copper, Steel, etc.
- I'm hearing about a trend in wooden buildings becoming more accepted and popular (plyscrapers).
This support level could fail and we could be looking at a big bear flag on the weekly chart. That said, it owns land and pays 4.75% dividend so I would think it becomes even more of a bargain at lower levels.