This Small Cap REIT Is Poised To Profit
- Keep searching and eventually you will uncover some exceptional small cap REITs that are poised to profit.
- It has taken a while for the broader market to come to appreciate the tremendous growth characteristics in the manufactured housing industry.
- I am upgrading UMH from a BUY to a STRONG BUY.
As you know, I am constantly exploring the REIT universe hoping to uncover the next diamond in the rough. It takes a lot of time and energy to find a golden nugget but when I do, it shines like a beacon in the night.
Small cap stocks are hard to spot, because they are often ignored by Institutional analysts. That’s not surprising. Small-cap REITs have always been seen as riskier bets than large caps. They often do not have the diverse revenue streams or stable cash flows that allow them to weather difficult economic environments (like their larger-cap counterparts).
Also, small cap stocks are more susceptible to wide swings in price due to lower trading volumes and this greater volatility deters action and often invites selling. By “flying under the radar,” the small-cap REITs offer better potential for growth over the long term and due to the decreased institutional support, there’s a better chance that small caps will result in an underestimation of a company’s operational health and prospects.
The hard work certainly paid off for me (and my subscribers) as my Small Cap REIT Portfolio returned over 20% in 2017. The secret to that success is simple: Keep searching and eventually you will uncover some exceptional small-cap REITs that are poised to profit.