My Oh My, 4 Strong Buys
- STRONG BUY does not necessarily suggest that shares in these REITs will immediately rebound.
- The company must have enhanced price appreciation catalysts that support annual Total Returns of 25% or higher.
- I will explain my rational for recommending 4 (of 11) STRONG BUYs.
As my newsletter subscribers know, I provide readers with a more detailed playbook than just BUY/HOLD/SELL picks. Oftentimes investors need more clarity as it relates to messaging, so I provide a few more granular recommendations, such as STRONG BUY, SPECULATIVE BUY, and TRIM. Here’s my definition of STRONG BUY:
“Strong Buy means that I am recommending a high-quality REIT that is trading at a wider margin of safety. Recognizing principal preservation is critical, my recommendation is telegraphing readers that the company is a blue chip on sale.”
One of the key valuation differences between a regular BUY and STRONG BUY is that the company must have enhanced price appreciation catalysts that support annual Total Returns of 25% or higher (over the next two years). Around two years ago, I had just two or three STRONG BUYs recommended, but now I have eleven.
Keep in mind, a STRONG BUY does not necessarily suggest that shares in these REITs will immediately rebound. Sometimes catalysts could be driven by macro-economic forces (such as tax reform) or headwinds, that could take quarters to play out.
Regardless, my “stepped-up” BUY recommendation is based on fundamental analysis in which I believe there is a good chance that the particular stock will outperform the regular BUY basket. In this article, I will explain my rational for recommending 4 (of 11) STRONG BUYs… and I will cover all 11 in the upcoming edition of my newsletter.