RE - Real Estate Double Top Before FOMCIdea for Real Estate:
- Real Estate testing a double top after some exhaustion Sept-Oct.
- MBB's rolling over, rejected at -1 Std Dev:
- Because every other market component is already at +2/-2 Std Dev, and Real Estate is relatively less volatile than say S&P 500, I think the +1/-1 Std Dev is a good signal.
- We will have more confirmation next week depending on Fed's decision to taper MBS purchases. I think the Fed will stick to their signaled schedule in hopes of avoiding any sort of a "tantrum".
- Historically, RE and MBS's lead declines in equities.
- We have seen both commodity prices, Building Permits and pending Home Sales come down, so a decline is natural:
- Overseas property market declining is likely to have headwinds as well:
GLHF
- DPT
Reit
EverGrande Real-estate situation in China = Black Swan Event?Will the EverGrande Real-estate situation in China be the catalyst that pops our real estate bubble and slow down our homebuilder industry?
This was last year, when they listed their stock to the HK market and scammed retail money. Now they are out of cash again, and their bonds are worth less than 30% on the dollar.
If this thing collapse, it could be China's version of the Lehman Collapse.
"
The world’s most indebted developer has warned Chinese officials it faces a potential default that could roil the nation’s $50 trillion financial system unless regulators approve the company’s long-delayed stock exchange listing. Shares and bonds fell in volatile trading.
China Evergrande Group mapped out the scenario in an Aug. 24 letter to the Guangdong government seen by Bloomberg, in which the company sought support for a restructuring proposal needed to secure the listing and avert a cash crunch.
Some of Evergrande’s biggest strategic investors have the right to demand their money back if the company fails to win approval for a backdoor listing on the Shenzhen stock exchange by Jan. 31. If investors refuse to extend the deadline, Evergrande will need to repay as much as 130 billion yuan ($19 billion), equivalent to 92% of its cash and cash equivalents."
HTA Healthcare Trust of America Inc 🧙Healthcare Trust of America Inc is a healthcare facility REIT. The company operates one segment, which engages in acquiring and operating medical office buildings. The company generates all of its revenue in the United States. It relies on its in-house leasing platform in order to generate scale, maximize expense efficiency, and build tenant relationships. Its strategy focuses on stable cash flows with relatively low vacancy risk, with consideration of merger and acquisition investment to supplement its operational growth strategy.
Industry
REIT - Healthcare Facilities
$GEO going for $8+ - The Geo Group REITIs GEO about to to go on a small run?
It looks like GEO may have just experienced wave one of an uptrend and is looking to continue that trend with wave 2. It briefly broke it’s this trend on July 19th but quickly hoped back on board and has been holding true since and has formed a nice level of support at $6.61. As of the 28th we appear to have broken out of the downwards trending dynamic resistance line that had started on the 19th of June after a rather large peak and selloff.
If the trend line holds true I believe we could see $GEO reaching over $8 in the coming weeks. Currently resistance at $7.01 is proving hard to break with a few runs taken at it on the 4hr chart. Keep an eye on the resistance zones as we progress through the range.
* This Content is for informational purposes only, you should not construe any such information or other material as investment, financial, or other advice.
If bottom picking is your shtick - HYPROP - SA Listed PropertyYup, on the 1D JSE:HYP chart it's all bad:
- Bear channel (not bull flag!),
- MACD death cross,
- RSI @37 but looks like it has more to give,
- Price < 5EMA < 15EMA < 200DMA.
Yucky.
HOWEVER, if you enjoy rolling the dice on bottom picking, consider the following:
- During the peak of the Covid selloff (no vaccines, armageddon, etc) HYP was trading in a range call it R15 to R25
- Current price is at the top of this range - in other words, the price is now as good as it was when there was no hope.
- Depending on whether you're a glass half full or half empty person, you could view the current charts as a great confirmation for a short. End of days etc. Conversely, you could view it as an accumulation zone between R23.15 and R25.15. Things can't get any worse etc.
Regarding fundamentals, some additional considerations:
- HYP does have some exposure to Africa & the Balkans, but it is primarily an SA large shopping center owner (85%+ of income). Its prospects are thus primarily correlated with economic growth & the efficacy of the vaccine rollout over the next year.
- It has no KZN exposure & some of the best quality assets in WC (Somerset Mall & Canal Walk).
- It has very little office exposure, so work form home is not a valuation driver here.
- LTV's, especially after the Atterbury disposal, are now 35.8%. Low & safe, nothing to see here.
- It has completed its book build (read: your dilution is already factored in) @R28.00. The institutional types who do things like buy book builds were happy to pay 13% more than the current price.
- Its NAV Dec-2020: R74.48. June-2019: R95.78. Therefore it's trading at call it a 66% discount to NAV after Covid write downs were properly factored into NAV, and at call it a 75% discount to pre Covid NAV. That seems like a lot.
- Before the world ended it was paying divs in the R6.60 p.a. area. Even if only half of that is restored (R3.30), you're still looking at a 13-15% div.
To be clear, the price can still get worse, this thing is clearly rolling down the hill. However, if you have a medium term view and the stomach & balance sheet to ride out some volatility & drawdowns over the next 6 months, accumulating a position at R23-R25 or cheaper may pay off very handsomely over a 12 month period.
Safe trading
UC
ps. a nice summary of the risks involved: www.moneyweb.co.za
Why Im Watching Real Estate [VNQ]Vanguard Real Estate is showing some interesting things after quietly consolidating since early June. And now, it finds itself in the midst of a breakout of its previous all time high at $105.77. It is still very early, but if the VNQ can confirm any sort of sustained price action above the $105.77 price level on the daily and weekly time frames, fireworks could be in store for the REITs sector of the market.
It should be mentioned that VNQ's price action has not properly back-tested the always important .786 fib level ($99.35) I have plotted here. So a pull back to this level before having enough juice to push decisively through the all time high would not be out of the ordinary.
On the flipside, if the VNQ can get a close above the major level we are at this week, a setup for price to run to $124 could be in the cards in the not-so-distant future.
Weekly Forecast 13th July 2021 I haven't made consistent posts for quite a while and that is due to the time constrain that I've suffered as a university student. So I've mostly only had time to analyze and make trades myself; neglecting the public posts and forecasts. Anyways, as always I am still bullish on O, It has always been a solid performer in my long-term portfolio. In one of my previous posts, it appears that my forecast was somewhat correct, more than I initially predicted and the stock now sees itself trading in an upward range. Even with the share issue that occurred previously the stock's price still remains strong and shows promise that bullish progress will continue to be made in the near future.
Anyways, what I can observe in the price action is mostly bullish. The following will be some general information about my analysis. The depth of the analysis will depend on the time I have available:
On the weekly graph, we can see that the general trend has been slowly creeping upward rather consistently which makes me happy as I would like to add into my long-term portfolio weekly.
Zooming into the daily graph we are provided some more meaningful information to create a forecast, allowing me to draw some trendlines that resemble a ascending channel; although this can generally be seen as a bearish pattern we must ultimately wait for more information before we can confirm anything. There isn't really much to comment on the price action as all the indicators and analysis generally point toward gradual movement to the upside.
Forecast:
In my most optimistic case I can expect price to rise to about the 72-73 dollar mark testing the resistance barrier where it can either be rejected and make a short term drop to the support at roughly 68. From there we will require more information before saying anything.
As for my more neutral case, price might not even reach the top of the channel and could drop right down to the support after hitting 69.
Anyways, that is what I've forecast for this stock. Take it with a grain of salt and note, that none of this is financial advice so do your down research. Happy trading.
AHT: REOPENING PLAY WITH GOOD POTENTIALATH : Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels.
Why I'm buying at these levels:
-ATH has now corrected to its 0.168 Fibonacci retracements (blue zone on the chart).
-The Demark TD sequential is on a 8 daily, showing good chance of reversal.
-The 50 EMA is supporting the price.
-Fundamentals reasons: the economy is reopening, people just want to travel and are going back to hotels
Targets on the chart: 7.79/9.11/12.80/14.14
Stop loss just below the EMA 50 and blue zone.
Trade safe.
AHTI see a bottom here
--> high volume in weekly for 2020 and 2021
--> higher lows
I will buy when a pullback happens and react with BIG volume making us another higher low.
I have another option:
as the volume seems to get bigger and bigger, and we may reach higher than the previous top with the pump in 2020, I might get in if we get a good response from the price there.
consider, if you want to do so, that the STOP LOSS will be close to the entry price, and if the price will fall in the triangle again, you will HAVE to close your position (and buy back as it makes a higher low as we said in the first place)






















